Shriram Transport posts sharpest fall in 19-months, turns investors jittery

Analysts say the correction is overdone and presents an opportunity for long-term investors

Shares of Shriram Transport Finance Company (STFC) tanked 19 per cent to Rs 1,047 in intra-day deals to record its sharpest fall in past 19 months on the BSE. The fall comes on the back of concerns of a possible default in payment of interest on non-convertible debentures (NCDs) of an unlisted Shriram group company, SVL Ltd, for whom Shriram Transport has extended guarantees.

Though the management assuaged investors' concerns, the market was clearly not in a mood to listen – at least on Wednesday. The stock ended the day at Rs 1,145 levels, down 12 per cent, as compared