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The shares of Shriram Transport Finance Company gained more than 2 percent on Tuesday at Rs 1,321 levels. In the past six months, the shares have gained approximately 12 percent. 

Recently the company, which is India’s largest financier of commercial vehicles merged with its other group company Shriram City Union Finance which is the largest two-wheeler financer in the country, to form a new entity- Shriram Finance. 

Post the merger, the new entity is set to be India’s largest retail-focused non-banking financial company. The company will have a total net worth of Rs 40,900 crore while the Assets Under Management (AUM) will amount to Rs 1,71,000 crore with a customer base of more than 6.7 million customers. 

Further, the company announced the appointment of Jugal Kishor Mohapatra as the company’s chairman and Maya Sinha as an independent director. 

Along with this, the group announced that Shriram Financial Ventures (Chennai) (SFVPL), which was the holding company of Shriram Capital (SCL), will be the new group holding company. 

Analysts remain bullish on the stock. Here are the targets recommended by them: 

Yes Securities has a ‘Buy’ call on Shriram Transport Finance Company with a target price of Rs 1,625 per share which represents an upside of 23% from the current levels. 

IIFL also has a ‘Buy’ call on Shriram Transport Finance Company with a target price of Rs 1,420 per share representing an upside of 7% from the current levels. 

Written by Anoushka Roy

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