Shares of this large-cap NBFC stock jumped around 9 percent in Friday’s trading session after the company posted financial results for the quarter ended September 2023. In the past six months, the company’s stock jumped around more than 40 percent.
With a market capitalization of Rs 73,694.67 crores, the stocks of Shriram Finance Limited started their trading session at Rs 1,853.90 and currently trades at Rs 1,962.85, indicating a gain of around 9 percent as compared to the previous close of Rs 1,797.65 apiece.
Such sharp movements in the company’s stock prices were witnessed after the company, through a regulatory filing with the exchange, announced the financial results for Q2FY24, i.e., for the quarter ended September 2023.
On a sequential basis, the company successfully reported an increase in both the prime business indicators such as the operating revenues and net profits.
The operating revenues went up from Rs 8,291 crores during Q1FY23-24 to Rs 8,884 crores during Q2FY23-24, and, the net profits, keeping the timeframe the same, moved up from Rs 1,711 crores to Rs 1,789 crores.
Moreover, the company, on a YoY basis too, reported an increase in the metrics mentioned above with the operating revenues shifting up from Rs 7,582 crores during Q2FY22-23 to Rs 8,884 crores during Q2FY23-24 exhibiting a gain of around 18 percent, and, the net profits, during the same period, moving from Rs 1,576 crores to Rs 1,789 crores.
Jefferies, a well-known Investment Bank based in the US, has maintained a ‘Buy’ rating on the company’s stock and revised the target price to Rs 2,300 indicating a potential upside of approximately 17 percent to the current price level.
According to the shareholding pattern data available for the quarter ended September 2023, the company’s Promoters hold a 25.45 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 54.67 percent in the company.
Shriram Finance Limited is an Indian Non-Banking Finance Company (NBFC) that is engaged in the business of financing pre-owned commercial vehicles, equipment, and other loans. The company derives revenue from the interest income on the loans provided. Geographically, it derives maximum revenue from domestic operations within India.
Written by Amit Madnani
