Morgan Stanley is bullish on midcap NBFC's. They have raised their target on Shriram City Union Finance and they say their conviction is driven by growth ready balance sheets stronger than arguably ever before. They have raised it all the way to Rs 2,175 versus Rs 1,480 earlier.

YS Chakravarti, MD & CEO, Shriram City Union Finance told CNBC-TV18, “We are looking at the growth of high teens and ballpark internal target for AUM is anywhere between 17-18 percent, this is a conservative target. We have seen a lot of demand for working capital from our core product that is the MSME segment. We have a built in a very robust pipeline for this business and we are bullish on this.”

On unsecured MSMEs, Chakravarti said, “Unsecured is a very minor portion of our book so we are not worried on that front. The majority of my customers are traders and service providers and this segment has come back very strongly and we are seeing demand for working capital from this segment.”

Watch the video for more

(Edited by : Ajay Vaishnav)