 "Shriram Transport Finance rallies on heavy volumes")
Shriram Transport Finance Company has rallied 7% to Rs 1,322, also its fresh record high on the National Stock Exchange (NSE), on the back of heavy volumes.
A combined 1.62 million equity shares representing nearly 1% of total equity of the company changed hands on the counter on the NSE and BSE.
In past three trading sessions the stock gained 9% from Rs 1,212, after the company reported 16.5% year on year (YoY) growth in net profit at Rs 374 crore for the quarter ended June 30, 2016 (Q1FY17). The Shriram group company engaged in consumer finance business had profit of Rs 321 crore in the year ago quarter.
Net interest income during the quarter under review grew 18.5% at Rs 1,346 crore against Rs 1,136 crore in the corresponding quarter of previous year.
The company said total Assets under Management (AUM) as on June 30, 2016 stands at Rs 74,808 crore as compared to Rs 60,532 as on June 30, 2015.
Analysts at Prabhudas Lilladher believes, sustaining AUM growth of +23% is difficult, as higher vintage pool will shrink on de?growth and Shriram Transport Finance Company will have to forcefully move towards new vintage portfolio impacting yields.
Any upgrade to numbers will be based on any improvement of utilization of vehicles which will improve cash flow of truck operators. The stock has outperformed and has been trading above our target price of Rs 1,315, the brokerage firm said in a results update.
At 12:21 PM, the stock was up 7% at Rs 1,315 on the NSE, compared to 0.20% decline in the Nifty 50 index.
A combined 1.62 million equity shares representing nearly 1% of total equity of the company changed hands on the counter on the NSE and BSE.
In past three trading sessions the stock gained 9% from Rs 1,212, after the company reported 16.5% year on year (YoY) growth in net profit at Rs 374 crore for the quarter ended June 30, 2016 (Q1FY17). The Shriram group company engaged in consumer finance business had profit of Rs 321 crore in the year ago quarter.
Net interest income during the quarter under review grew 18.5% at Rs 1,346 crore against Rs 1,136 crore in the corresponding quarter of previous year.
The company said total Assets under Management (AUM) as on June 30, 2016 stands at Rs 74,808 crore as compared to Rs 60,532 as on June 30, 2015.
Analysts at Prabhudas Lilladher believes, sustaining AUM growth of +23% is difficult, as higher vintage pool will shrink on de?growth and Shriram Transport Finance Company will have to forcefully move towards new vintage portfolio impacting yields.
Any upgrade to numbers will be based on any improvement of utilization of vehicles which will improve cash flow of truck operators. The stock has outperformed and has been trading above our target price of Rs 1,315, the brokerage firm said in a results update.
At 12:21 PM, the stock was up 7% at Rs 1,315 on the NSE, compared to 0.20% decline in the Nifty 50 index.