Motilal Oswal issued a buy rating for Shriram Finance with a target price of Rs 1220. The firm said that while the macro backdrop turned more challenging, the company’s diversified franchise provides a cushion. They expect strong growth in assets and profits by FY28 despite current pressures on rural cash flows.
Motilal Oswal's research report on Shriram Finance The macro backdrop has turned more challenging, but we see the current pressure as cyclical. Higher crude prices, elevated bond yields, and uneven monsoon trends could weigh on rural cash flows and transporter incomes in the near term. However, Shriram Finance's (SHFL) diversified franchise, resilient asset quality, and strong underlying demand provide a cushion against these headwinds. Outlook We expect SHFL to deliver a CAGR of ~18%/~29% in AUM/PAT over FY26-28, along with RoA/RoE of ~4%/13.5% by FY28. Reiterate BUY with a TP of INR1,220 (premised on 2.2x FY28E BVPS). For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Shriram Finance - 3009026 - moti