Shriram Finance Shares: This Nifty50 Stock Tanks 15% In 2 Sessions; Should You Buy, Sell Or Hold?

Shares of Shriram Finance person tumbled astir 15 per cent successful nan past 2 sessions aft nan institution reported a muted group of capacity successful nan March 2025 quarter, missing nan street's estimates. Brokerage firms person trim their estimates and target prices, pinch immoderate analysts downgrading nan stock. However, mostly of them stay affirmative connected nan stock.

Shriram Finance reported a 9.9 per cent year-on-year (YoY) emergence successful its consolidated nett profit of Rs 2,139.4 crore successful nan March 2025 quarter, aided by beardown disbursements and patient nett liking income. The NBFC major's nett liking income for nan 4th fourth accrued 13 per cent YoY to Rs 6,051 crore. However, nan numbers were beneath nan estimates.

Asset value saw a sequential improvement, pinch gross non-performing plus (NPA) ratio reducing to 4.55 per cent, while nett NPA ratio coming astatine 2.64 per cent. However, its proviso sum ratio fell to 43.28 per cent, suggesting a little buffer against imaginable in installments losses. The institution has recommended a last dividend of Rs 3 per stock for FY25.

The miss successful quarterly net was visible successful nan banal capacity arsenic nan banal plunged astir 15 per cent successful nan past 2 trading session. After falling astir 6 per cent to adjacent astatine Rs 655.65 connected Friday, nan banal tanked different 9 per cent to Rs 596.10 connected Monday, taking nan wide autumn to 15 per cent. The full marketplace capitalization slipped beneath Rs 1.12 lakh crore.

Shriram Finance reported a miss connected in installments costs and NIM successful Q4FY25. The miss connected NIM was connected relationship of liquidity remaining precocious astatine Rs 30,000 crore, while NIMs fell 23 bp QoQs, starring to level NII QoQ. Credit costs excessively roseate sharply by 18 per cent QoQ to 2.4 per cent of AUM, said Nuvama Institutional Equities.

"The emergence successful accent loans and in installments costs occurred owed to a lower-than-expected betterment successful plus value successful Q4, which is seasonally strong, and a accent test. The guidance does not spot accent aliases in installments costs rising successful FY26E. We are maintaining ‘buy’ and raising nan target value to Rs 760, it added pinch a be aware that near-term value capacity whitethorn stay soft.

Nirmal Bang Institutional Equities downgraded nan banal to 'hold', remaining cautious connected plus quality, and staying watchful connected nan capacity of golden indebtedness and nan MSME portfolio. Gold indebtedness maturation remains anemic contempt favourable factors. Although nan guidance remains hopeful of a recovery, we for illustration to hold for visible improvement, it added pinch a target value of Rs 689.

Shriram Finance’s net were marginally little than estimates owed to NIM compression and higher than-expected in installments costs. NIM compression was mostly driven by excess liquidity and uptick successful costs of funds, said HDFC Securities. Management remains upbeat astir nan uptick successful request driven by agrarian betterment and infrastructure spending, it said.

"Credit costs accrued sequentially to 2.4 per cent pinch an summation successful GS-II successful a seasonally beardown 4th owed to anemic macro environment. We revise our FY25/FY26 net estimates to facet successful marginally little indebtedness maturation and higher in installments costs and support 'add' pinch a revised RI-based target value of Rs 685," HDFC Securities added.

JM Financial continues to stay watchful connected plus value of nan institution arsenic slippages accrued complete nan quarter. Though, higher stock of secured assets, precocious ECL screen and consistently beardown disbursement/AUM maturation post-merger provides comfort, it said. "We support a 'buy' pinch a revised target value of Rs 730," it added.

Shriram Finance is efficaciously leveraging cross-selling opportunities to scope caller customers and present caller products, which will lead to improved operating metrics and a coagulated instauration for sustainable growth, said Motilal Oswal Financial Services. The existent valuation is attractive, it said and reiterated 'buy' standing pinch a target value of Rs 790.

Among nan overseas brokerage firms, Goldman Sachs and Jefferies person a 'buy' standing connected Shriram Finance pinch a target value of Rs 816 and Rs 775, respectively. Other overseas brokerage for illustration CLSA and City has an 'outperform' standing connected nan banal pinch target value of Rs 735 and 750, respectively.