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Shriram Transport Finance Company
Investment Profile: Aggressive Horizon: 1-1.5 Yrs
Business Summary Shriram Transport Finance Company (STFC) is a deposit taking NBFC primarily involved in the financing of 2nd hand and new Commercial Vehicles. It enjoys the distinction of being India‟s largest Asset Financing NBFC with a market share of 25% in the pre-owned CV (Commercial Vehicle) financing segment and a market share of 8% in the new CV financing segment.
Investment Rationale
STFC possesses a very unique business model and is functioning in an environment where organized competition is low and entry barriers are high. STFC has been able to develop strong competencies in the areas of loan origination, valuation of 2nd hand CVs and collections since it has been involved in this Business for over three decades STFC has a diversified borrowing profile and has reduced its dependence on floating rating liabilities thereby making it less prone to the rising interest rates cycle employed by the RBI. Our SOTP Discounted earnings+ depreciation model for STFC suggests that the fair value of the share is Rs.700. Investors can consider buying the stock at Rs.<530
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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Shriram Transport Finance Company
Investment Profile: Aggressive Horizon: 1-1.5 Yrs
Business Summary Shriram Transport Finance Company (STFC) is a deposit taking NBFC primarily involved in the financing of 2nd hand and new Commercial Vehicles. It enjoys the distinction of being India‟s largest Asset Financing NBFC with a market share of 25% in the pre-owned CV (Commercial Vehicle) financing segment and a market share of 8% in the new CV financing segment.
Investment Rationale
STFC possesses a very unique business model and is functioning in an environment where organized competition is low and entry barriers are high. STFC has been able to develop strong competencies in the areas of loan origination, valuation of 2nd hand CVs and collections since it has been involved in this Business for over three decades STFC has a diversified borrowing profile and has reduced its dependence on floating rating liabilities thereby making it less prone to the rising interest rates cycle employed by the RBI. Our SOTP Discounted earnings+ depreciation model for STFC suggests that the fair value of the share is Rs.700. Investors can consider buying the stock at Rs.<530
see full list at
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