Shriram Finance Ltd.’s stock price jumped more than 7% on Monday, marking their biggest one-day gain since July 26. The company’s impressive quarterly earnings were in line with market forecasts. In the second quarter, Shriram Finance’s overall revenue climbed 18% year over year to Rs 10,097 crore, as per an exchange filing.
Additionally, the company’s net profit increased significantly by 20.2% to Rs 2,153 crore. According to Nuvama, the non-banking financial firm reported strong asset quality, high asset under management growth, a stable net interest margin, and a lower incremental cost of financing. According to the brokerage, investors have been paying close attention to BFSI companies throughout the second quarter.
Targeting a price of Rs 3,800, Nomura reaffirmed their ‘buy’ rating on Shriram Finance. According to the brokerage firm, Shriram Finance is their number one choice since it continuously produced results across measures and because current valuations are still comparatively low.
Shriram Finance Q2 Results
In comparison to the same period last year, when it was Rs. 4,818.18 crores, Shriram Finance’s net interest income for the second quarter ended September 30, 2024, climbed by 16.37% to Rs. 5,606.74 crores.
Shriram Finance reported an 18.30% growth in profit after tax, totaling Rs. 2,071.26 crores, compared to Rs. 1,750.84 crores during the same period the year before. Compared to Rs. 46.67 during the same time last year, the basic earnings per share (EPS) improved by 18.04% to Rs. 55.09.
About the Company – Shriram Transport Finance Company Ltd
The SHRIRAM Group, which is well-known in the finance sector, includes Shriram Transport Finance Company Ltd. Commercial vehicle financing, mostly for new and secondhand trucks, is STFC’s area of expertise. With 1,758 branches and 831 rural centers, it is a deposit-taking non-banking financial business (NBFC) that works with about 500 private financiers.
