
Motilal Oswal (MOSL) has maintained its bullish stance on Shriram Finance, reiterating a “Buy” rating with a target price of ₹700, reflecting a potential upside of approximately 30% from the current market price of ₹538.00, as of January 13, 2025.
Key Highlights:
Top NBFC Pick for 2025:
Shriram Finance has been identified as the top NBFC choice for 2025 due to its robust post-merger execution and strong business fundamentals.
Growth Projections:
- The company is expected to achieve a PAT CAGR of ~19% over FY24-FY27.
- Return on Assets (RoA) and Return on Equity (RoE) are projected at 3.3% and 17%, respectively, by FY27.
Potential Re-Rating:
There is significant room for re-rating if the company sustains its growth in assets under management (AUM), improves margins, and maintains credit costs at favorable levels.
Analyst’s View:
Motilal Oswal believes Shriram Finance’s strong growth trajectory and post-merger synergies position it well to deliver robust returns in the medium to long term. The brokerage highlights the potential for the company to outperform in the NBFC sector, making it a top pick for 2025.
Disclaimer: This article is based on brokerage views and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.