Shriram Finance Ltd. share price target

Shriram Finance, sustaining >20% YoY AUM growth in Q1FY25 and improving trajectory in RoE (now settling at >16%) for straight five quarters, is the evidence of STFC-SCUF’s successful merger and management’s superior execution.

Shriram Finance, reported over 16% RoE in Q4FY24, is the evidence of STFC-SCUF’s successful merger that led to one of the largest distribution networks in the industry with >3,000 branches serving around 8mn customers through a wide array of product offerings.

Shriram Finance’s (SHFL) 4QFY24 PAT grew ~49% YoY to ~INR19.5b (in
line) and PPoP grew 27% YoY to ~INR39.1b (in line). FY24 PAT grew ~20%
YoY to ~INR71.9b. YoY numbers may not be comparable because of a few
one-off items in 4QFY23.

Shriram Finance (SHFL), the merged entity of Shriram Transport Finance (SHTF)
and Shriram City Union Finance (SCUF), has emerged as a stronger player in all
its product segments. With a more diversified AUM mix and better access to
liabilities, SHFL is effectively driving cross-selling of non-vehicle products to its
customers.