BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Shriram City Union Finance Ltd. reported a healthy disbursement momentum despite seasonality (relative to Q3 of the fiscal year).
Product mix change in favor of personal loans has aided yields while improvement in borrowing costs has allowed Shriram City Union Finance to deliver healthy spreads/margins.
Asset quality exhibited significant improvement with gross stage-III declining ~100 basis points QoQ without having to resort to elevated write-offs (like in Shriram Transport Finance Company Ltd.) and is perhaps the best in the last six years.
Shriram Housing continues to demonstrate a lot of promise in all aspects ranging from assets under management growth, margins and asset quality.
Technical reasons (of a potential supply overhang after the merger) aside, the merged entity will emerge stronger than the respective standalone businesses.
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