Update shared on 01 Nov 2025
Fair value Increased 3.46%Narrative Update: Shriram Finance Analyst Price Target Revision
Analysts have raised their fair value estimate for Shriram Finance from ₹716.68 to ₹741.45. This revision reflects incremental improvements in revenue growth expectations, even with a slightly higher discount rate and minimal changes to profit margin and valuation multiples.
What's in the News
- The Board of Directors of Shriram Finance has scheduled a meeting on October 31, 2025 to consider and approve unaudited financial results for the quarter and half-year ended September 30, 2025. Other agenda items include discussing an interim dividend for FY 2025-26 and potential fundraising.
- Shriram Finance denied rumors on October 1, 2025 regarding Mitsubishi UFJ Financial Group's alleged plans to acquire a 20% stake for $2.6 billion, stating that such reports are based on speculation and that management has no knowledge or control over related share price movements. (Company exchange filing)
- Earlier the same day, it was reported that Mitsubishi UFJ Financial Group was in advanced talks to acquire a significant stake in Shriram Finance in what could be the largest ever foreign acquisition of an Indian non-banking finance company. (The Economic Times)
Valuation Changes
- Consensus Analyst Price Target increased from ₹716.68 to ₹741.45, reflecting a modest upward revision.
- Discount Rate edged up slightly from 16.47% to 16.61%.
- Revenue Growth rose marginally, moving from 27.14% to 27.70%.
- Net Profit Margin declined slightly from 36.11% to 35.73%.
- Future P/E increased modestly from 15.58x to 15.65x.
Disclaimer
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