India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
Shriram City Union Fin (Growth momentum picking up, BUY):
Discussions with management of Shriram City Union Finance (SCUF) suggest improving underlying growth momentum. SCUF is making significant efforts in rolling out its gold loan offerings through the large Shriram Transport Finance (SHTF) network into the northern and western markets. Management expects this business to ramp up and start contributing to loan growth over the next 3-4 quarters. We raise loan growth estimates, even as we expect credit costs to remain subdued, resulting in robust 29% EPS CAGR for SCUF over FY10-13ii. Earnings upgrades and reducing growth gap vis-à-vis peers should drive stock performance. Current valuations, at 2.2x FY12ii BV, provide an attractive entry point into a strong franchise having robust earnings and return outlook. BUY with a TP of Rs800 (revised from Rs790).
No comments:
Post a Comment