Shriram City Union Finance: Small loans, big yields

Niche focus in the small enterprises finance space and healthy presence in the two-wheeler segment have kept the performance of Shriram City Union Finance (a subsidiary of Shriram Capital) in good stead. While migrating to the more stringent non-performing asset (NPA) recognition norms has impacted its earnings in the latest March quarter, healthy provision cover provides cushion as the company switches to the 120-day norm by March 2017 and 90-day norm by end-March 2018.

Good prospects in the small and medium enterprises (SME) segment and the two-wheeler business driving credit offtake, a kicker to growth from likely improvement in the economy a year from now, and healthy provision, should drive an annual average earnings growth of 15-17 per cent over the next two years. Investors with a two to three years horizon can buy the stock.

https://www.thehindubusinessline.co...nce-small-loans-big-yields/article8601041.ece

 

invested?

 

No I have Bajaj Finance, CAPF and IndusInd bank. BF is 3 bagger for me I am also happy with other two stocks with compounding gains