Today, on 28th April 2025, Shriram Finance’s share price has declined by almost 9% since the opening bell. The drop began after the fourth quarter results were declared, disappointing many investors and analysts. The figures for the company’s quarter-over-quarter and year-on-year growth fell short of expectations, driving investors away from trading the company’s shares.
Shriram Finance Q4 Results are Not up to Expectation
According to Morgan Stanley, Shriram Finance’s credit costs of 2.42% exceeded its 2.1% projections. Although it was determined that net stage 2+3 slippages increased, the whole increase in credit costs was not considered.
Kotak Institutional Equities said the market became more concerned after Shriram Finance’s slight increase in delinquencies across all sectors. It stated that while not concerning, the trends are unquestionably observable. According to the report, earnings are buffered by liability-side tailwinds while growth is still calibrating. HSBC noted a significant rise in gross stage 2 loans in the fourth quarter, increased credit costs, and NIM pressure were all anticipated.
Nuvama kept its ‘Buy’ recommendation on Shriram Finance despite the stock’s drop, increasing the target price to Rs. 760 and citing robust disbursement growth and high net interest income.
Shriram Finance Share Price in Today’s Market
Today, Shriram Finance’s shares opened to the market at Rs. 622.70, a drop from last session’s close of Rs. 655.20 At 11:10 a.m., Shriram Finance’s share price was Rs. 624.70, nearly 4.66% lower than its previous close. According to the reports and estimates on Money Control, the current market capitalisation shows 117,514 cores; the UC Limit is 720.70, and the LC Limit is 589.70.
Q4 Financials
Released on 25th April, Shriram Finances’ Q4 stands thus: The company’s net profit was Rs. 2,139.39 crore, up 10% YoY from Rs. 1,945.87 crore in Q4 FY24. Its Revenue from Operations was recorded as Rs 11,454.23 crore, a 20.78% increase from Rs. 9,483.71 crore in the same quarter last year. The Net Interest Income (NII)was 13.4%, up at Rs.6,051.19 crores, and the Net Interest Margin (NIM) was 8.25%, down from 9.02% in Q4 FY24. Shriram Finance’s capital adequacy ratio was 20.66%. The company announced a dividend share for FY 25 to be Rs. 3
Recent News About Shriram Finance
- The company’s credit costs rose to 2.4% of AUM, up 18% quarter-on-quarter.
- In the Nifty 50 index, Shriram Finance took UPL’s place on 28th March 2024 in recognition of its robust market capitalisation and track record.
- To improve client experience and preserve its leadership in the rural and semi-urban lending markets, the company announced intentions to grow its digital offerings on April 25th.
- As of 31st March 2025, assets under management (AUM) were Rs. 2.93 lakh crore, representing a 17% YoY increase.
Shriram Finance Share Price Target
As per Trendlyne’s reports, Shriram Finance Ltd. has an average target of 711.67. The consensus estimate represents an upside of 14.95% from the last price of 619.10.
Should You Buy, Sell, Or Hold?
Most analysts on Trendlyne strongly recommend buying. On MoneyControl, 69% of experts suggest buying, and only 3% support holding and selling. Before investing in Shriram Finance, consider its long-term performance and consult your analyst to make the perfect move. India Hood does not suggest buying or selling any shares.
