CLSA has maintained its “Outperform” rating on Shriram Finance, setting a target price of ₹3350, citing the company’s strong positioning in terms of loan growth, margins, and asset quality. The report highlights several key aspects of Shriram Finance’s performance and growth outlook.
The company is expecting mid-teens loan growth driven by increased cross-selling of its existing products across a broader network, as it plans to open 100 to 120 new branches annually. CLSA also noted Shriram Finance’s focus on maintaining steady operating expenses while boosting fee income, which contributes to an overall healthier financial outlook.
Further emphasizing the company’s solid footing, CLSA mentioned that collections remain robust, and credit costs are under control. Additionally, Shriram Finance has guided for a 100-basis-point improvement in return on equity (ROE) annually for the next two years.
With these strong operational parameters, Shriram Finance is well-positioned for sustained growth and profitability, as reflected in CLSA’s confident “Outperform” rating.
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