Too early to turn positive on M&M Finance, Chola, Shriram Transport stocks

Uptick in used CV sales helped in Q3, but new vehicle sales remain weak and operational challenges haven't eased

Shriram Transport Finance's stock took investors by storm last week when it gained 23 per cent, reacting to its December quarter (Q3) results. Even the stocks of its peers — Mahindra & Mahindra Financial Services (M&M Finance) and Cholamandalam Investment and Finance (Chola Finance) — had a good run after their Q3 results, prompting a section of investors to think if the tide had turned favourable for vehicle financiers. Shriram Transport’s 19 per cent year-on-year (YoY) growth in disbursements may have particularly nudged one to think so. But, the devil lies in the detail and some of the broader parameters,