Shriram Transport Finance Ltd. was trading more than 3 percent higher in trade on Wednesday, after Credit Suisse put out a client note saying the company looks attractive at current prices. The brokerage house said the company had made additional provisions to factor in the transition to goods and services tax, which is no longer necessary as the government has left a 90-day window for players to seek input tax credit. The vehicle loan lender will also see higher loan disbursements in coming months, added the brokerage house.
- Expect the company to be one of the few non banking financial companies to post better net interest margin numbers in the first quarter of the current financial year.
- New loan growth in the used truck segment will return to pre-demonetisation levels.
- GST will aid logistics and transportation sector in the long-term.
- Shriram Transport's current market price 30 percent cheaper than peers like Mahindra Financial Services Ltd.
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