Shriram Transport: Street hasn't turned cautious despite fall in profit

A mix of prudent lending, along with increased securitisation, assignment, and reliance on external commercial borrowings, has helped the financier

The Shriram Transport Finance stock, which was among the top gainers on Tuesday — up over 4 per cent even as the Sensex ended flat — has been on a rise since the announcement of its results last week. 

These gains came despite its December quarter (Q3) earnings being the weakest in recent times. In the last three months, concerns over receding demand for commercial vehicles (CVs) have been a drag on the stock. However, analysts haven’t turned negative on the stock, despite the numbers lagging expectations.

For one, they say that with the underlying industry trend not exhibiting strength, Shriram Transport’s