Siddharth Teli bullish on Shriram Transport Finance

Siddharth Teli, MD & Co-Head-Institutional Research at Religare Capital Markets told CNBC-TV18, "We have been quite bullish on Shriram Transport Finance Corporation. We believe that commercial vehicle (CV) cycle should also start looking better specifically on the second hand space and that is where you might see Shriram doing better from hereon in terms of net interest margins.”

“The asset quality pressures could abate as well. The stock had a meaningful correction over the last three years both in absolute stock price terms as well as the fact that there has been a time correction as well. So, at closer to 1.5-1.6 times we are quite bullish on Shriram Transport,” he added.

“We also remain constructive on Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). We are fairly comfortable there and we believe that valuations still suggest upside for power financiers. Gold financing is something where we are positive as well.”