Buy Shriram Finance, target price Rs 1520: Nuvama Wealth brokerage

Nuvama Wealth brokerage has buy call on Shriram Finance Ltd. with a target price of Rs 1520.0. The current market price of Shriram Finance Ltd. is Rs 1409.65.Nuvama Wealth brokerage recommended to keep stoploss at Rs 1379.

Shriram Finance, incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 52812.97 Crore) operating in NBFC sector.

Shriram Finance key Products/Revenue Segments include Interest, Income From Sale Of Share & Securities, Income From Financial Services, Fees & Commission Income, Other Operating Revenue and Rental Income for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 7979.75 Crore, up 2.18 % from last quarter Total Income of Rs 7809.39 Crore and up 56.85 % from last year same quarter Total Income of Rs 5087.59 Crore. Company has reported net profit after tax of Rs 1285.04 Crore in latest quarter.

The company’s top management includes Mr.S Lakshminarayanan, Mr.Umesh Revankar, Mr.Parag Sharma, Mr.D V Ravi, Mr.Ignatius Michael Viljoen, Mr.Y S Chakravarti, Mrs.Kishori Udeshi, Mr.S Sridhar, Mr.Pradeep Kumar Panja. Company has Sundaram & Srinivasan as its auditors. As on 31-03-2023, the company has a total of 37 Crore shares outstanding.

Investment Rationale
Closed at a 9-month high. Upside has more legs from hereon for a potential 100 point up move.

Promoter/FII Holdings
Promoters held 25.51 per cent stake in the company as of 31-Mar-2023, while FIIs owned 49.78 per cent, DIIs 11.74 per cent.