Shriram Finance Share Price: Stock hits new 52-week high after Q2 earnings, brokerages turn bullish—Check fresh targets

Shriram Finance Share Price: Shares of Shriram Finance rallied over 6 per cent to hit a new 52-week high of Rs 800 apiece in the early hours of trade on Monday. As of 2:30 pm, the stock was trading at Rs 797.20, up by 6.46 per cent from the previous close. The rally followed after the company reported its financial results for the quarter and half-year ended September 2025.

Brokerages' views on Shriram Finance

Jefferies on Shriram Finance

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Jefferies has maintained its 'buy' rating on Shriram Finance while raising the target price from Rs 800 to Rs 880.

CLSA on Shriram Finance

CLSA has maintained its 'accumulate' rating on Shriram Finance while raising the target price from Rs 735 to Rs 840.

The company’s profit after tax (PAT) marginally beat CLSA’s estimates, primarily due to lower credit costs. Assets under management (AUM) grew by around 16 per cent year-on-year (YoY), supported by an 8 per cent rise in disbursements, driven by strong momentum in the gold loan segment (+31 per cent) and steady growth in commercial vehicle (CV) and passenger vehicle (PV) loans (about 14 to 15 per cent).

Margins improved by roughly 10 basis points (bps) quarter-on-quarter (QoQ), aided by a lower cost of funds, with further improvement expected as excess liquidity was reduced toward the end of September.

Asset quality remained stable, with gross Stage 3 (GS3) assets at 4.6 per cent and credit costs at 1.9 per cent, both better than guidance.

Additionally, Shriram Finance announced leadership changes, with current MD & CFO Parag Sharma set to become MD & CEO, alongside the appointment of two new Chief Operating Officers (COOs) and a Chief Strategy Officer (CSO) from its senior leadership team — signalling strong internal succession planning and management continuity.

JP Morgan on Shriram Finance

JP Morgan has maintained its 'overweight' rating on Shriram Finance while raising the target price from Rs 740 to Rs 840.

Citi on Shriram Finance

Citi has maintained its 'buy' rating on Shriram Finance and has raised its target price from Rs 750 to Rs 870.

Morgan Stanley on Shriram Finance

Morgan Stanley has maintained its 'overweight' rating on Shriram Finance with a target price of Rs 865.

In Q2 FY26, credit costs came in at 1.93 per cent, nearly flat QoQ and down 14 bps YoY, which was better than Morgan Stanley’s estimate of 2.3 per cent, leading to an 8 per cent beat in profit after tax (PAT) versus expectations.

Pre-provision operating profit (PPOP) was in line with forecasts, as a 1 per cent miss in net interest income (NII) was offset by lower operating expenses (flat QoQ, +12 per cent YoY).

The brokerage highlighted a significant improvement in asset quality, with stressed asset formation dropping sharply to 1.1 per cent of trailing twelve-month AUM (annualised) from 4.4 per cent in Q1 and 2.7 per cent in Q2 FY25.

Additionally, Stage 2+3 assets declined to 11.5 per cent from 11.8 per cent in Q4 FY25 and 11.9 per cent in Q1 FY26, while the provision coverage ratio on Stage 3 assets improved to 127 per cent from 125.

Macquarie on Shriram Finance

Macquarie has maintained an 'outperform' rating on Shriram Finance with a target price of Rs 830.