Shriram City Union Finance Q4 Review - Stability Demonstrated Against All Odds: ICICI Securities
A customer holds Indian rupee banknotes. (Photographer: Dhiraj Singh/Bloomberg)

Shriram City Union Finance Q4 Review - Stability Demonstrated Against All Odds: ICICI Securities

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.

ICICI Securities Report

Despite all odds, Shriram City Union Finance Ltd. has been consistently reporting stable earnings for the past three quarters.

Q4 FY21 earnings too were encouraging with disbursement growth of 21% YoY (6% QoQ) driving 4% sequential rise in assets under management.

Asset quality showed promising trends:

  1. stage-III assets down 9 basis points QoQ to 6.37%,
  2. stage-II managed at 6%,
  3. restructuring at 0.5% of AUM, and
  4. credit cost contained lower at 2.5%.

Visibility on uptick in AUM growth, reduced credit cost and superior return on asset/return on equity profile (3-4%/13-15%) will drive valuations of the standalone entity to 1.3 times FY23E adjusted book.

Click on the attachment to read the full report:

ICICI Securities Shriram City Union Finance Q4FY21 Results Update.pdf

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