Technology

Outlook & Valuation: We expect STFC’s AUM to grow at moderate CAGR of 11%
over FY2019-22E, however, we expect operating parameter to improve at healthy
rate owing to improvement in NIM, asset quality. We expect STFC to report
RoA/RoE of 2.8%/17.3% in FY2021E. At CMP, the stock is trading at 1.6x
FY2021E ABV and 8x FY2021E EPS, which we believe is reasonable for a
differentiated business model with return ratios. We recommend a BUY on the
stock with a Target Price of `1,410.

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