Shriram Finance Q4 Results Review - Growth Outlook Strong; Asset Quality Improves: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Shriram Finance Ltd.’s Q4 FY24 performance was merely flat versus our estimates, with net interest income/pre-provision operating profit coming in at a variation of 1.1%/-3.5%. Profit after tax came in at Rs 19.45 billio (versus our estimate of Rs 24.5 billion) on account of higher than expected provisions (+6.5% YoY).AUM grew robustly at 21% YoY to Rs 2,249 billion, led by robust growth in the Shriram City Union Finance Ltd. portfolio. We expect Shriram Finance to deliver 17.5% return on equity in FY25, led by steady growth in assets under management, sustainable NIM and controlled credit costs.Strong growth outlook in Shriram City Union Finance portfolio, stable NIM and improving asset quality ratios are key positives. We tweak our estimates factoring in higher opex. Roll forward our valuation to March 2026E adjusted book value of Rs 1,614, with no change in target multiple of 1.7 times, giving us a target price of Rs 2,675 (same as earlier). The stock has rallied 8% over the past three months and valuation prices in all the positives. Downgrade to Accumulate..Click on the attachment to read the full report:.Shriram Finance Q4 Results: Profit Jumps 49%, Net Interest Margin Expands.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Shriram Finance Q4 Results Review - Growth Outlook Strong; Asset Quality Improves: Nirmal Bang

Focus on high-yielding mix; 15% growth in FY25:

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