Shriram Transport Finance - Quant Pick - ICICI Securities

Recommendation

Buy Shriram Transport Finance in the range of Rs. 730-745
Target: Rs. 875
Stop Loss: Rs. 665

Time frame: Three months

Derivatives & Quantitative Outlook

The NBFC space has remained largely range bound in the last few months with stocks like Shriram Transport Finance underperforming its peers. Recent shoring up of capital through QIP in July addresses its concerns on liquidity and volatility in asset quality. We believe the stock has significant room for upsides. After remaining range bound for some time, the recent up move is likely to continue.

Like most stocks, open interest in Shriram Transport Finance has also declined substantially during the sharp decline seen in February and March. The OI has come down from 7 million shares to just over 2 million shares in March. However, since then, the stock has seen gradual OI build-up with the current OI the highest seen in the last six months at 5 million shares. We believe long additions were seen in the stock and prices should see follow up movement.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_ShriramTransport_Sep20.pdf

Shares of SHRIRAM TRANSPORT FINANCE CO.LTD. was last trading in BSE at Rs.692.55 as compared to the previous close of Rs. 706.65. The total number of shares traded during the day was 183482 in over 6144 trades.

The stock hit an intraday high of Rs. 711.45 and intraday low of 683.1. The net turnover during the day was Rs. 127241559.

Source : Equity Bulls

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