Shriram Transport Finance share price has hit its one month low of Rs 982.25 per stock levels after starting off from Rs 1,117.10. In this period, Shriram Transport Finance shares also made a high of Rs 1,168.10. According to stock market experts, Shriram Transport Finance stock price is expected to hit Rs 1,524 per stock levels in one year’s time and that it is turning out to be a portfolio stock for share market investors. They have advised investors to take a buy position at the current market price of Rs 1,130.10, its Wednesday closing.
Asked about the current status of the company’s fundamentals, Sanjay K Mundra, President at Shriram Transport Finance said, “Total Assets under Management (AUM) as on 31st December 2019 stands at Rs 108,931.38 crores as compared to Rs 103,817.94 crores as on 31st December 2018. The Net Interest Income for the Third quarter ended 31st December 2019 increased by 1.36 per cent at Rs 2,055.42 crores as against Rs 2,027.87 crores in the same period of the previous year.”
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He said that the profit after tax (PAT) increased by 38.35 per cent at Rs 879.16 crores as against Rs 635.45 crores recorded in the same period of the previous year. The earning per share (basic) for the third quarter ended 31st December 2019 increased by 38.29 per cent at Rs 38.75 as against Rs 28.02 recorded in the same period of the previous year.
Speaking on Shriram Transport Finance share price outlook, Darpin Shah, Analyst at HDFC Securities said, “Asset quality of Shriram Transport Finance is stable. Its AUMs grew merely around 5 per cent YoY (flat QoQ), but on expected lines to Rs 1.09tn. Growth in pre-owned vehicles was slightly better at around 8 per cent against 2 per cent expected, while new vehicle and other business AUMs saw sustained de-growth at around 8 per cent against the expected 4 per cent. We believe tepid growth is now, more a consequence of lower demand as commentary on funding is positive.”
On his suggestion for investors, Shah said that a they can buy Shriram Transport Finance shares at the current market price for the target of Rs 1,524 levels, keeping four quarters in mind.
Highlighting the technical charts of Shriram Transport Finance stocks, SEBI registered technical equity analyst Simi Bhaumik said that the stock has made a positive breakout and one can buy this counter for the long-term.