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