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Stock pick of the week: 4 factors that make Shriram Transport Finance a strong bet

Shriram Transport is reasonably safe on its business front because of the increased borrower interest in used vehicle finance, its ample liqudity, improving collection mechanism, high rural focus and reasonable valuations. These factors have made the company a favourite of analysts.

By Narendra Nathan, ET Bureau |Updated: June 29, 2020, 11.06AM IST
With 70% y-o-y fall in net profits, Shriram Transport Finance reported weak numbers for the fourth quarter of 2019-20. However, analysts are getting bullish on the counter because of its improving outlook triggered by several factors. First, borrower interest in used vehicle finance continues and it is one of the only two lending segments that continues to draw traction
strong buy, 4 for buy, 3 for hold, 2 for sell and one for strong sell) and any improvement in consensus analyst rating indicates that the analysts are getting more bullish on the stock. To make sure that we pick only companies with decent analyst coverage, this search will be restricted to stocks with at least 10 analysts covering it.

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