Shriram City Union Finance Ltd. share price target

Repayment rate (annualized) on business loans increased to 68% from 61% in 2QFY15 and 43% in 1QFY15, though this is lower than the peak of 95% in 3QFY14. Overall disbursement improved (8.8%YoY, 9.2%QoQ) led by growth in gold disbursements (27.5%YoY) on a lower base, while non-gold disbursements grew (1.8%YoY, 26.1%QoQ)....

SCUFs NII was in-line with estimates led by healthy NIMs and a marginal pick up in AUM ( 8% YoY). However, with higher staff cost and provisions, PAT was marginally lower than estimates. Ex-gold, disbursements/AUM grew ~26/5% QoQ, while gold disbursements declined ~15% QoQ.

(162bps YoY) amidst shift in loan mix towards SME and 2W, while sequentially yields dropped 61bps on the back higher gold loan disbursements. Cost of funds increased (21bps YoY) on the back of increase in the share of retail funding (100bps YoY) to 31% where rates are sticky, while the share of bank borrowings and NCDs was noted at 53% and 9% respectively. Management hinted moderation in cost of funds in coming quarters on increased market borrowings. Asset Quality declined marginally to 2.89% as absolute GNPAs increased (29.7%YoY,...

Background: Shriram City Union Finance (SCUF), the retail finance arm of the Shriram Group, offers div ersified loan products ranging from low risk (loan against gold) to high risk segments (small business loans and two-wheeler financing). Strong group parentage (three decades expertise in the finance services space) is among the key positives. The company benefits from Shriram Chits' branch infrastructure and existing customers, deriving more than 85% of its business from Shriram Chits'...

Union Finance (SCUF), the retail finance arm of the Shriram Group, offers diversif ied loan products ranging from low risk (loan against gold) to high risk segments (small business loans and two-wheeler financing). Strong group parentage (three decades expertise in the finance servic es space) is among the key positives. The company benefits from Shriram Chits' branch infrastructure and existing customers, deriv ing more than 85% of its business from...

Union Finance (SCUF), the retail finance ar m of the Shriram Group, offers diversified loan products ranging from low risk (loan against gold) to high risk segments (small business loans and tw o-w heeler financing). Strong group parentage (three decades expertise in the finance services space) is among the key positives. The company benefits from Shriram Chits' branch infrastructure and existing custo mers, der iving more than 85% of its business from Shriram Chits' netw ork. Shriram City operates through a w ide distribution netw ork of ~1000 branches, 600 of them ar e ow ned by...

Background: Shriram City Union Finance, the retail finance arm of the Shriram Group, offers diversified loan products ranging from low risk (loan against gold) to high risk segments (small business loans and two-wheeler financing). Strong group parentage (three decades expertise in the finance services space) is among the key positives. The company benefits from Shriram Chits' branch infrastructure and existing customers, deriving more than 85% of its business from Shriram Chits' network. Shriram City operates through a wide distribution network of ~1000 branches, 600 of them are owned by Shriram...

Background: Shriram City Union Finance, the retail finance arm of the Shriram Group, offers diversified loan products ranging from low risk (loan against gold) to high risk segments (small business loans and two-wheeler financing). Strong group parentage (three decades expertise in the finance services space) is among the key positives. The company benefits from Shriram Chits' branch infrastructure and existing customers, deriving more than 85% of its business from Shriram Chits' network. Shriram City operates through a wide distribution network of ~1000 branches, 600 of them ar e owned by Shriram...

Background: Shriram City Union Finance, the retail finance arm of the Shriram Group, offers diversified loan products ranging from low risk (loan against gold) to high risk segments (small business loans and two-wheeler financing). Strong group parentage (three decades expertise in the finance services space) is among the key positives. The company benefits from Shriram Chits' branch infrastructure and existing customers, deriving more than 85% of its business from Shriram Chits' network. Shriram City operates through a wide distribution network of ~1000 branches, 600 of them are owned by Shriram City and the rest are shared with group companies. Most of the...