Hold Shriram City Union Finance, target price Rs 724: Emkay Global
Shriram City Union Finance Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 4651.89 Crore) operating in NBFC sector.
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Promoters held 33.9 per cent stake in the company as of June 30, 2020, while FIIs held 26.8 per cent, DIIs 5.6 per cent and public and others 33.7 per cent.
Emkay Global has given hold rating to Shriram City Union Finance with a target price of Rs 724. The share price moved up by by 3.01 per cent from its previous close of Rs 686.75. The stock’s last traded price is Rs 707.40.
Shriram City Union Finance Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 4651.89 Crore) operating in NBFC sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1482.78 Crore, down 4.08 % from last quarter Sales of Rs 1545.91 Crore and down 5.63 % from last year same quarter Sales of Rs 1571.29 Crore. The Company reported net profit after tax of Rs 198.43 Crore in latest quarter.
Investment Rationale The brokerage raised earnings estimates by ~3% for FY21/22. It maintains Hold/EW in EAP, with a revised TP of Rs724 (Rs705 earlier), corresponding to 0.5x Sept’22E P/B. Key risk to the call is another nationwide lockdown disrupting SME cashflows. Promoter/FII Holdings Promoters held 33.9 per cent stake in the company as of June 30, 2020, while FIIs held 26.8 per cent, DIIs 5.6 per cent and public and others 33.7 per cent.
