Centrum maintains ‘buy’ on Sundaram Finance, target price Rs 1,900

Centrum has maintained its ‘Buy’ rating on Sundaram Finance with a target price of Rs 1,900. The brokerage said while Sundaram’s Q3 operating revenues were in line with analyst expectations, the asset quality numbers deteriorated mainly due to commercial vehicle loans. Outlook on MHCV loans remains muted and for 3 quarters demand might remain soft as there is excess capacity and lack of clarity on the BS-VI vehicles pricing. Credit flow to cars and tractors might be maintained at current levels as some states might see seasonal demand coming up. Shares of Sundaram closed at Rs 1,640, up 0.8%.