Bumpy road to profitability seen for Shriram Transport amid merger plans

Trucking finance firm's merger plans stoke fears of truck financing dilution

Shriram Transport Finance Company (STFC) — a truck and commercial vehicle financier — has been one of the biggest losers among the BSE 200 stocks in recent weeks. The company’s stock price is down nearly 16 per cent in the last one month, against 0.5 per cent rise on the benchmark BSE Sensex during the period. The stock closed on Monday at Rs 1,217.6 apiece, down 27 per cent from its 52-week high share price of Rs 1,664 made on November 8.

Analysts attribute this to investors’ concerns about the company’s merger with group firms Shriram City Union Finance (SCUF)