Shriram City Union Finance Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 10038.93 Crore) operating in NBFC sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1570.41 Crore, up 3.90 % from last quarter Total Income of Rs 1511.41 Crore and down -.07 % from last year same quarter Total Income of Rs 1571.53 Crore. Company reported net profit after tax of Rs 305.55 Crore in latest quarter.
Investment Rationale
Shriram City Union Finance is part of the Shriram group and is in the high margin business of lending to small businesses which account for 57.3% of the loan book as of end FY20. The company posted a good set of number s for the quarter due to positive surprise on the asset quality front. It reported a strong 50% sequential growth in disbursement for the quarter which led to a 3.7% qoq growth in AUM to ~ Rs. 28,500 crore. The brokerage is positive on the company as it believes that the worst is over in terms of asset quality which along with positive growth momentum should lead to a rerating for the company.
Promoter/FII Holdings
Promoters held 33.9 per cent stake in the company as of June 30, 2020, while FIIs held 26.8 per cent, DIIs 5.6 per cent and public and others 33.7 per cent.
