Shriram City Union Finance Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 5591.11 Crore) operating in NBFC sector.
Getty ImagesPromoters 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.
Edelweiss has given buy rating Shriram City Union Finance with a target price of Rs 1080. The share price moved down by 6.65 per cent from its previous close of Rs 894.20. The stock’s last traded price is Rs 834.75. Shriram City Union Finance Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 5591.11 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 Company has reported net profit after tax of Rs 198.43 Crore in latest quarter.
Investment Rationale Events over the past two years have tested SCUF’s resilience, particularly given its reliance on the self-employed segment. The company responded by going slow on growth and recalibrating collection strategies to navigate the challenging environment. Covid-19 additionally renders the near-term outlook challenging. Post a deep correction, the stock trades at 0.7x FY21E P/ABV, rendering comfort. It maintains ‘BUY/SP’. Key risk remains around possibility of a less-than-favourable merger ratio in the three-way merger envisaged in the Shriram Group’s restructuring.
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.
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