Citi has maintained a Buy rating on Shriram Finance stock, setting a target price of ₹720, which implies a 30.8% upside from the current market price (CMP: ₹550.45). The brokerage highlights that truck rentals on major routes surged 2-4% MoM, while retail sales of cars, two-wheelers, and buses saw a significant increase in January.
Additionally, E-way bill generations rose 10% month-on-month (MoM) in value terms, indicating robust activity in the goods transportation sector. However, FASTag collections remained flat MoM, and diesel consumption declined by 4% MoM, mainly due to the cold wave in North India affecting vehicle movement.
Looking ahead, Citi remains optimistic about the logistics sector’s performance, expecting seasonal demand and supportive economic policies to drive further growth in the coming months.
Disclaimer: The views expressed are those of the brokerage firm and not of Business Upturn. Investors are advised to conduct their own due diligence before making any investment decisions.