We met the management of Shriram Transport Finance (SHTF) and returned with renewed optimism on its business prospects. Over the past few years, while CV volumes have been stagnant, there has been a marked shift in mix towards higher-tonnage vehicles. In addition, price hikes in the past two years have been healthy (18-20% on new vehicles). While the addressable market size for SHTF in terms of volumes will remain largely stable, we believe better pricing and mix will drive disbursement and AUM growth. AUM is likely to grow 18-19% in FY18 as compared to the management's earlier guidance of 15% growth. We keep our FY18 AUM growth estimate of 18% unchanged,but modestly increase FY18-20E AUM CAGR to 17%