Shriram Finance Ltd is coming up with double rewards in the form of stock split and dividend payout. The multi-bagger NBFC is also planning fundraising through non-convertible debentures (NCDs) on private placement. The large-cap NBFC is set to meet during next week's session. Post-Covid, Shriram has skyrocketed by a whopping 660%. Going ahead, 33 analysts have recommended BUY on Shriram Finance.
Shriram Finance Share Price:
At present, Shriram Finance's share price stands at Rs 3,350 apiece with a market cap of Rs 1,25,956.40 crore. Last month, the stock touched a fresh 52-week high of Rs 3,652.25 apiece and has corrected since then. Its 52-week low is at Rs 1,760.85 apiece.
YTD, Shriram Finance stock gained by nearly 63.5% on NSE.
As per data from NSE, in 2020, just before the first lockdown of Covid-19, Shriram touched its lowest level of Rs 440 of that year, on March 23, 2020. But since then the stock has bloomed to grow into a multi-bagger. Amidst the nationwide lockdown, in the same year, Shriram Finance stock rebounded to cross the Rs 1,000 mark, to Rs 1,046.50 crore on December 31, 2020, which was near its highest level of 2020, Rs 1,174.70 apiece that was recorded on January 1.
Despite the sharp rebound, the stock took another two years to cross the Rs 2,000 mark. In 2023, the stock touched Rs 2,130 on December 14, the highest of that year. Further stock took less than 10 months to hit the all-time high of Rs 3,652.25 apiece last month.
From March 23, 2020, to date, the stock has skyrocketed by 661.36% on NSE.
Currently, the stock is somewhat overvalued, and a stock split will likely improve its liquidity, and make it further affordable to new and existing investors.
Shriram Finance Stock Split, Dividend, NCDs:
As per the regulations, a meeting of the Board of Directors of the company will be held on Friday, October 25, 2024, inter-alia to consider:
- Approval of Unaudited Standalone and Consolidated Financial Results for the second quarter and half year ended September 30, 2024.
- Declaration of interim dividend for the Financial Year 2024-25, if any.
- Approval of periodical resource mobilisation plan for issuance of debt securities viz. redeemable non-convertible debentures ('NCDs')/ subordinated debentures, bonds on private placement basis and/or public issue in tranches or any other methods of borrowing in onshore/offshore market for business of the Company.
- Proposal of alteration in the share capital of the Company by sub-division/ split of existing equity shares having a face value of Rs. 10/- each, fully paid up in such manner as may be determined by the Board of Directors, subject to the approval of the Members of the Company.
The stock split will be for the first time by the company.
Shriram Finance Recommendation:
The consensus recommendation from 33 analysts for Shriram Finance Ltd. is STRONG BUY, as per Trendlyne data. Of the total, 33 analysts have recommended 'STRONG BUY' and 7 analysts have suggested 'BUY' on the stock. The average 1-year target price on Shriram Finance is at Rs 3562.94 apiece, hinting at a potential 6.5% upside.
Antique Stock Broking has recommended BUY with a target price of Rs 3,500.
About Shriram Finance:
Shriram Finance Limited is a retail asset financing Non-Banking Finance Company (NBFC) with Assets under Management (AUM) of over Rs. 2.33 lakh crore. Shriram Finance offers financing solutions for passenger and commercial vehicles, micro and small and medium enterprises (MSMEs), tractors and farm equipment, gold, personal loans, and business loans. It has a pan India presence with a network of 3,095 branches and an employee strength of 75,813, servicing over 87 lakh customers.
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