ICICI Securities recommends Shriram Finance buy with ₹1,225 target
Business
ICICI Securities is recommending Shriram Finance as a buy, setting a target price of ₹1,225. It feels the current stock price already reflects possible economic bumps ahead.
Its latest report highlights Shriram's solid Q2 FY27 numbers, with assets under management up 17% year-over-year and a healthy 5% rise over the last quarter.
Shriram Finance credit costs 2.3%
Shriram's profitability is looking strong: net interest margin jumped to 9.52%, and its cost-to-income ratio dropped to 22.5%.
However, credit costs rose to 2.3% from 1.9% in the last quarter, mainly due to droughts in some areas.
Management expects these higher credit costs might stick around for a bit, but ICICI Securities remains confident about the company's ability to handle challenges ahead.