NBFC Stocks to BUY: After strong performance in the fourth quarter, brokerage firm is bullish on the shares of Shriram Finance and has given a big target. In Q4, the company’s net profit stood at Rs 1945.87 crore with a jump of 48.73%. Net interest income increased by 20.02% to Rs 5336.0.6 crore. A dividend of 150 percent has also been announced for investors. This share closed at the level of Rs 2500 (Shriram Finance Share) this week. It has given a return of 22 percent so far this year and 78 percent in 1 year.
After Q4 results, Nuvama Institutional has given buy advice on Shriram Finance shares and increased the target price from Rs 2700 to Rs 2900. The brokerage said that AUM and profit before tax were better than expected. NIM i.e. Net Interest Margin is also fine. Asset quality has improved. Management has kept a guidance of 15% loan growth, but some pressure may be seen in the first quarter of FY25. Credit cost and interest margin are expected to remain stable.
This top pick of brokerage
After the results, Bajaj Finance has reduced the guidance of growth and interest margin. Many NBFCs have been accused of fraud. In such a situation, it looks quite attractive in the NBFC segment and the outlook is also good. It has been showing healthy performance continuously for the last 4 quarters. Housing finance will be disinvested in June which will make the capital position more healthy. This brokerage is the top pick in this segment.
Shriram Finance Q4 Results
According to the information available on the BSE website, the net interest income in the fourth quarter on standalone basis stood at Rs 5,336.06 crore with a jump of 20.02%. Net profit stood at Rs 1,945.87 crore with a jump of 48.73%. The share on EPS i.e. Earnings stood at Rs 51.79 with a jump of 48.23%. AUM i.e. Asset Under Management stood at Rs 224,861.98 crore with a jump of 21.10%. ROA i.e. Return on Assets was 3.19% which was 2.47% a year ago.
Shriram Finance Dividend Updates
Shriram Finance has also issued a dividend of 150 percent i.e. Rs 15 per share on the face value of Rs 10. Earlier in FY24, the company had issued interim dividends of Rs 10 and Rs 20. Now the total dividend amount for the entire financial year has become 450 percent i.e. Rs 45 on the face value of Rs 10. The record date (Shriram Finance Dividend Record Date) has been fixed on 23rd July. It will be paid before 28th August.
(Disclaimer: The advice to invest in stocks here has been given by the brokerage house. These are not the views of Global News Express. Consult your advisor before investing.)
