Morgan Stanley, Goldman Sachs see over 25% upside in Shriram Finance; stock hits an all-time high

Shriram Finance shares clocked an all-time high of Rs 2,284 apiece in morning deals on BSE on Thursday (December 11, 2024) after brokerages Morgan Stanley and Goldman Sachs raised their respective target prices for the stock.

At around 10:42 a.m., shares of Shriram Finance were up 4.5 per cent or Rs 96.85, at Rs 2247 apiece. The market capitalisation of the company at around the same time stood at Rs 84,396.2 crore.

Global brokerage Morgan Stanley has maintained an 'overweight' rating and has raised the target price to Rs 2,700, which translates to an upside of over 25 per cent from Wednesday's closing price.

Goldman Sachs is also bullish on the stock and has upgraded the rating to 'buy'. The brokerage increased the target to Rs 2,758, which implies an upside of over 28 per cent from Wednesday's closing price. 

The company will announce the financial results for the third quarter ended December 31 on January 25, 2024. 

In Q2FY24, Shriram Finance reported a 12.6 per cent year-on-year increase in the standalone net profit to Rs 1,750.8 crore, driven by 20 per cent growth in loans, which was 500 basis points above the company's long-term guidance. 

The company's net interest income, or the difference between the interest earned and the interest paid, increased 17.4 per cent to Rs 4,818.2 crore for the quarter ended September 30.

The financier raised its Net Interest Margin (NIM) guidance for the year ending March 2024 to 8.5-9 per cent from 8.5 per cent. It also raised its annual loan growth forecast to 18.20 per cent from 15 per cent.

Shriram Finance share price: Past performance

In the last year, shares of Shriram Finance have gained over 68 per cent as against Nifty 50's rise of over 21 per cent. 

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