Shriram Fin poised for faster growth: Experts

SHRIRAM FINANCE COULD enter a phase of faster and more competitive growth following ₹39,618-crore equity infusion, analysts said. Some brokerages believe that the NBFC could grow at rates comparable to larger peers such as Bajaj Finance and Cholamandalam Investment & Finance.

- 

MUFG Bank's The stock on Monday gained 3.67% to close at 934.80 on the National Stock Exchange.

Most brokerages have given the 'buy' rating to the stock, and have raised the target price in the range of 1,050-1,225.

"We see this as a strategic investment by MUFG, with long-term plans that could include increasing its shareholding and eventually becoming the promoter," Emkay Global said.

Post infusion, Shriram Finance's net worth is expected to rise sharply from about ₹60,404 crore as of September, taking its Tier I capital close to Bajaj Finance's levels and well above most non-PSU NBFC peers. Emkay estimates the Tier I ratio to rise by about 14 percentage points to nearly 34% by March.