With a market capitalization of Rs 54,891 crores, Shriram Finance Ltd shares gained 7 percent in early morning trade and hit an intraday high of Rs 1500.90. This upsurge rise of shares occurred after a large block deal on the exchanges.
According to the Moneycontrol report, around 99.2 lakh shares, or 2.65% of the company’s shares, were traded in the block sale for Rs 1,401.15 per share. The sale was for a total of Rs. 1,390 crore.
According to CNBC-Awaaz, TPG India, a PE fund, was most likely the seller in this transaction. At 1:00 pm, the stock was trading at Rs 1,466.45 on the NSE, up 4.63 percent from its previous close.
In the past three months, the stock gained 20.8 percent from Rs 1219.70 to current levels, and in the previous year, the stock gained 29.33 percent from Rs 1,138.90 to current levels.
Shriram Finance Ltd is one of India’s major asset financing NBFCs, which is engaged in credit solutions for commercial vehicles, two-wheeler loans, car loans, etc.
The company’s financial reports show that net profit significantly jumped by 18% in Q4FY23 from Q4FY22 to Rs 1,086 crore. Additionally, operational income rose from Rs 5,081 crore in the same time last year to Rs 7,966 crore, a 57 percent gain.
On a year-to-year basis, the revenue rose by 58 percent, from Rs 19,255 crores in FY 21–22 to Rs 30,476 crores in FY 22–23. During the same time frame, the Net Profit jumped by 122 percent, from Rs 2,707 crores to Rs 6,011 crores.
The profitability ratios for FY23 were 13.81 percent ROE and 16.25 percent ROCE. The operating margin increased to 69.38 percent, while the net profit margin was at 19.72 percent.
As of FY23, the promoter owned 25.51 percent of the firm, while foreign institutional investors (FIIs) owned 49.78 percent, and Domestic institutional investors(DIIs) owned 11.75 percent.
Written by Omkar C
