Morgan Stanley has reiterated its overweight rating on Shriram Finance with a target price of ₹740 per share, implying a potential upside of about 18.2% from the current market price of ₹626.00.
The brokerage noted that the company’s FY26 loan growth guidance remains unchanged at 15%, despite a 50-basis-point impact from lower prices, which is being offset by higher volumes and vehicle upgrades. It added that credit cost guidance has been maintained at 2.0% of assets and 2.2% of loans.
Morgan Stanley also expects net interest margins to improve meaningfully in Q3FY26 as the adverse impact of excess liquidity seen earlier flows out of the system. The guidance will be revisited post Q2 results.
Disclaimer: The views and investment recommendations expressed are those of Morgan Stanley. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
