Buy Shriram Finance, target price Rs 1500: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Shriram Finance with a target price of Rs 1500.The current market price of Shriram Finance is Rs 1431.65. Sharekhan by BNP Paribas recommended to keep stop loss at Rs 1383.

Shriram Finance, incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 52288.77 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 7809.39 Crore, up 45.93 % from last quarter Total Income of Rs 5351.28 Crore and up 61.61 % from last year same quarter Total Income of Rs 4832.33 Crore. Company has reported net profit after tax of Rs 1800.14 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
Breakout from the symmetrical triangular pattern with MACD also in a bullish crossover.

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.