Shriram Finance share: Brokerage firms look bullish on Shriram Finance shares. The company’s shares saw a rise of 1.24 percent today on January 13. However, this momentum could not be sustained amid the huge fall in the market. The company’s shares closed at Rs 520.80, down 2.09 per cent on BSE. With today’s fall, the market cap of the company came down to Rs 97,925 crore. The stock’s 52-week high is Rs 730.43 and 52-week low is Rs 438.83.
Shriram Finance target price
Brokerage firm Motilal Oswal has released its latest outlook on shares of Shriram Finance. According to the report, the brokerage firm has maintained its “Buy” rating on the stock and its target price has been set at Rs 700. According to today’s closing price, there is a possibility of a rise of about 35 percent in the company’s shares. During FY24-27E, PAT CAGR projection stands at around 19 per cent, and ROA (Return on Assets) and ROE (Return on Equity) are expected to reach 3.3 per cent to 17 per cent by FY27E.
The brokerage firm said Shriram Finance’s asset quality is quite stable and credit cost is expected to be between 2.3 to 2.4 per cent in FY26-27E. According to the report, the significant rise in estimates for the stock is due to the sale of Shriram Finance’s housing finance subsidiary to Warburg Pincus for about Rs 3,929 crore, which led to a post-tax exceptional gain of about Rs 1,300 crore. The company is likely to benefit from a potential repo rate cut and a strategic shift towards high-yield non-CV products.
The merger with Shriram City Union Finance has significantly strengthened SHFL’s position in non-commercial vehicle (CV) loans, with gold loans, MSME loans and personal loans being the major contributors. The company’s commitment to green financing and expansion of its electric vehicle (EV) portfolio has also been highlighted as a key growth area. “Even if auto declines in the future, we expect non-auto products to emerge as a growth driver for SHFL,” the report said.
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