Stock Analyst Choice

Stable Market Leader

Access to low cost funds has helped Shriram Transport, but the fear of contracting net margins is a concern…

As part of our Wealth Creator Series , today we look at Shriram Transport Finance Company. This is one of the 39 stocks that were short-listed that passed through our stringent stock screen filters.

Shriram Transport Finance Company Ltd. is a market leader with Rs 40,213 crore of assets under management and a stable asset quality of 2.8 per cent Gross NPA and 0.4 per cent Net NPA. Access to low cost funds has helped it to clock an NIM of 7.51 per cent in FY12. Moreover, 75 per cent of promoter's stake is transfered to the employee trust. Concern: Fear of rising NPAs and contracting net margins.

To read about how we arrived at the list click here. To read about stocks from the Wealth Creator List, click here.





This article was originally published on August 20, 2012.

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