Nuvama has increases target for this NBFC stock by 25%; firm announces 100% dividend; know target price and record date
Stock to BUY: After strong performance in the third quarter, the brokerage has increased the target for Shriram Finance by 25 per cent. This NBFC has also announced 100 per cent dividend for investors.
Stocks to BUY: Non-banking financial company Shriram Finance has released Q3 results last week. The result was as per the brokerage's estimate, after which, it has given an aggressive target by increasing its target price by 25 per cent.
This stock has also given strong returns of around 85 per cent in one year.
Along with the results, the company has also announced a 100 per cent dividend for investors.
This share closed at the level of Rs 2307 (Shriram Finance Share Price) this week.
Shriram Finance Q3 Results
According to the information available on the BSE website, the net interest income of Shriram Finance on standalone basis stood at Rs 5093.93 crore, with a jump of 15.04 per cent on an annual basis.
Net profit stood at Rs 1818.34 crore with a jump of 2.33 per cet.
Total income stood at Rs 8927.30 crore with a jump of 17.28 per cent.
EPS i.e. earning on share was Rs 48.42, which was Rs 47.46 a year ago.
Assets under management stood at Rs 214233.47 crore with a jump of 20.70 per cent on quarterly basis.
The share has become Rs 1252.8 on book value.
Shriram Finance Share Price Target
Nuvama said in its report that the performance of Shriram Finance was as expected.
Interest income and AUM grew better than expected.
NIM i.e. Net Interest Margin stood at 9 per cent with a quarterly growth of 10bps.
This was also better than expected.
In such a situation, the brokerage has directly increased the target price from Rs 2145 to Rs 2700.
Currently, this share is at the level of Rs 2307.
The target is about 18 per cent higher than this level.
This stock has given a return of 27 per cent in three months and about 85 per cent in one year.
Shriram Finance Dividend Details
Shriram Finance has also announced 100 per cent dividend along with Q3 results.
The board has declared a dividend of 100 per cent i.e. Rs 10 per share on the basis of face value of Rs 10.
The record date (Shriram Finance Dividend Record Date) has been fixed at February 6.
The dividend yield of the company is around 3.5 per cent.
It means, every year on an investment of Rs 10,000, this company gives only Rs 350 as dividend.
(Disclaimer: The advice to invest in stocks here has been given by the brokerage house. These are not the views of Zee Business. Consult your advisor before investing.)
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