Shriram Transport Finance to witness good growth: Prabhudas Lilladher
Sanjeev Patni, president and head, Institutional Equities, Prabhudas Lilladher, in a chat with ET Now talks about Shriram Transport Finance.
By 
|
| Sanjeev Patni, president and head, Institutional Equities, Prabhudas Lilladher, in a chat with ET Now talks about Shriram Transport Finance.
Shriram Transport Finance has been able to control NPAs but in a rising interest rate scenario do you think the growth is pretty much in the price right now or is there still upside left and what will drive growth?
Well there is still upside left. I think CV financing, which is their core business, is just turning up. They are going to be doing well over there and they are also expanding into newer areas like construction equipment financing which will be actually a major growth driver for them. They are also increasing their PE income going forward. So interest rate doesn’t really impact that much.
The PE income growth is actually going to be very very strong for them. So it’s a very well managed company and with the exciting growth opportunities that they are now tapping, they have fully loaded on the capital raising. So there is no capital raising required. I think all of those things are going to be giving them good growth.
Shriram Transport Finance has been able to control NPAs but in a rising interest rate scenario do you think the growth is pretty much in the price right now or is there still upside left and what will drive growth?
Well there is still upside left. I think CV financing, which is their core business, is just turning up. They are going to be doing well over there and they are also expanding into newer areas like construction equipment financing which will be actually a major growth driver for them. They are also increasing their PE income going forward. So interest rate doesn’t really impact that much.
The PE income growth is actually going to be very very strong for them. So it’s a very well managed company and with the exciting growth opportunities that they are now tapping, they have fully loaded on the capital raising. So there is no capital raising required. I think all of those things are going to be giving them good growth.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
