Shriram Finance Q3 Results Review - Net Interest Margins Guidance Up; AUM Growth Remains Strong: IDBI Capital

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Shriram Finance Ltd.’s net interest margin improved to 8.99 % QoQ led by led by rise in yields. Management guided to hold NIMs at 8.9% (versus 8.5% - 8.9% earlier) going forward. Assets under management growth remains strong led by growth in passenger vehicle and micro, small and medium enterprise segments. Management guided for 20% AUM growth for FY24 and conservatively 15% growth going forward. We expect 16% CAGR (FY23-26) loan growth. Asset quality improved with gross stage-III at 5.7% versus 5.8% led by higher write offs. Net interest income grew by 7% QoQ led by improvement in NIMs; pre-provision operating profit grew by 6% QoQ led by lower other income (down 11% QoQ). However, PAT grew by 4% QoQ led by increase in provisions (up 11% QoQ). We have moved to FY26E estimates and expect earnings per share to grow at 13% CAGR (FY23-26). We maintain 'Buy' rating on Shriram Finance with new target price of Rs 2,675 (earlier Rs 2,230) valuing at 1.75 times FY26E adjusted book value..Click on the attachment to read the full report:.Shriram Finance Q3 Results Review - Strong Growth And Steady NIMs Drive Performance: Systematix .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Shriram Finance Q3 Results Review - Net Interest Margins Guidance Up; AUM Growth Remains Strong: IDBI Capital

We expect RoA to sustain above 3% post-merger with stable asset quality

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Shriram Finance Q3 Results Review - Net Interest Margins Guidance Up; AUM Growth Remains Strong: IDBI Capital

We expect RoA to sustain above 3% post-merger with stable asset quality

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