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Shriram Finance Rallies After Q2 Results as Brokers Lift Targets

Upgrades reflect confidence in margin expansion.

Overview

  • Shares rose about 5% intraday to roughly Rs 794 after the September quarter, which showed 11% year-on-year growth in net profit alongside nearly 10% NII and about 11% PPoP gains.
  • CLSA and JPMorgan maintained positive stances with targets raised to Rs 840, while Motilal Oswal set Rs 860 and Nuvama moved to Rs 870 with Buy recommendations.
  • Nirmal Bang maintained a Hold with an Rs 812 target, describing the quarter as mixed versus consensus despite operational tailwinds.
  • Management guided to a net interest margin of 8.4% by the fourth quarter and targeted 16% AUM growth in the second half of FY26.
  • Analysts highlighted contained credit cost near 1.9%, a 35 bps quarter-on-quarter improvement in Stage-2 assets, and lower operating expenses from branch consolidation and a reduced headcount.