Shriram Transport Finance –Buy- Religare
Shriram Transport Finance (SHTF) is all set to capitalize on the revival in demand for new/pre-owned CVs over the next three years.
Recently launched fee-based initiatives will fortify the company’s position in its core business while higher securitisation and tighter control on operating expenses will help maintain RoE at ~28-30%.
We are increasing our PAT estimates by 2% and 8% for FY10 and FY11 respectively on expectations of higher margins and fee income. Better visibility in the equipment financing business may trigger further upsides. We maintain BUY with a revised price target of Rs512.
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Category: Broker tips
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