Shriram Transport Finance Corporation share price gained over 10 percent in early trade on February 4 after the company reported better numbers in the quarter ended December 2019.
The company reported a 38.4 percent jump in its consolidated net profit to Rs 879.16 crore for the third quarter ended December versus Rs 635.45 crore in the same quarter last year.
Net interest income was up 1.36 percent to Rs 2,055.42 crore as against Rs 2,027.87 crore
Total income was at Rs 4,288.26 crore against Rs 3,993.40 crore.
UBS | Rating: Buy | Target: Rs 1,650 per share
The sharp decline in credit costs driving large EPS beat. Expect consensus EPS upgrades driven by lower credit costs.
Risk-reward is very favourable due to healthy ROEs of 18% & cheap valuations, while decline in wholesale rates to aid margins; the asset quality to remain stable.
Morgan Stanley | Rating: Overweight | Target: Rs 1,365 per share
The big beat driven by asset quality surprise. The credit costs are lower than estimate on sharply lower NPA formation
The decadal low valuation at 8x FY20e is attractive.
Nomura | Rating: Buy | Target: Raised to Rs 1,400 from Rs 1,350 per share
The valuations are too cheap, while Q3 results should lead to some re-rating. It reported steady operating performance.
At 09:18 hrs Shriram Transport Finance Corporation was quoting at Rs 1,084.30, up Rs 97.60, or 9.89 percent on the BSE.
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