Shriram Transport - Collection Efforts, Moratorium Benefit Yielding Strong Results: Motilal Oswal
A cashier counts Indian one hundred-rupee banknotes at an Oriental Bank of Commerce branch in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Shriram Transport - Collection Efforts, Moratorium Benefit Yielding Strong Results: Motilal Oswal

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 Transport Finance Co.’s annual report has surprised us positively with the internal details on asset quality.

Expected credit loss provisioning remains healthy on the balance sheet, with 6.8% of total loans, including higher Covid-19-related management overlay of ~2.3%.

The management remains confident about further improvement in disbursements, an accelerating digitalisation process, and tackling the second wave fairly better.

It is further strengthening its leadership position.

The company is fuelled by capital (especially after the recent equity raise of ~Rs 25 billion through qualified institutional placements and preferential allotment to the promoter).

Click on the attachment to read the full report:

Motilal Oswal Shriram Transport Annual Report Update.pdf

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