Sharemasterindia.com: Shriram Transport Finance shares gained as much as 4 per cent to an
intraday high of Rs 885 on Wednesday after domestic credit rating agency
Crisil upgraded its long-term debt to AA+ and fixed deposits to AAA.
Crisil said the outlook for the commercial vehicles industry is improving and the cash flow of transport operators is likely to pick up.
The domestic rating agency does not see any negative impact on its credit profile on account of the merger of equipment finance arm.
Analysts say the upgrade by Crisil is likely to result in lower borrowing cost for Shriram Transport Finance, which stood at 10.9 per cent for FY15. Shriram Transport Finance's borrowing cost was higher than its peers in the industry, analysts said.
As of 9.50 a.m. Shriram Transport Finance shares traded 2.71 per cent higher at Rs 875 apiece, outperforming the broader Nifty, which was up 0.49 per cent.
Crisil said the outlook for the commercial vehicles industry is improving and the cash flow of transport operators is likely to pick up.
The domestic rating agency does not see any negative impact on its credit profile on account of the merger of equipment finance arm.
Analysts say the upgrade by Crisil is likely to result in lower borrowing cost for Shriram Transport Finance, which stood at 10.9 per cent for FY15. Shriram Transport Finance's borrowing cost was higher than its peers in the industry, analysts said.
As of 9.50 a.m. Shriram Transport Finance shares traded 2.71 per cent higher at Rs 875 apiece, outperforming the broader Nifty, which was up 0.49 per cent.
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