 "Shriram Finance, IIFL, L&T Finance hit new highs; rally upto 19% in 1 month")
Share price of non banking finance companies (NBFCs)
Shares of non-banking finance companies (NBFCs) Shriram Finance, IIFL Finance and L&T Finance have hit their respective record highs, gaining by up to 2 per cent on the BSE in Thursday’s intra-day trade in otherwise a subdued market. In comparison, the BSE Sensex was up 0.07 per cent at 85,281 at 12:28 PM.
Among the individual stocks, Shriram Finance hit a new high of ₹1,010.35, up 1.4 per cent, as the proposed transaction with MUFG Bank is expected to significantly benefit Shriram Finance’s capitalisation profile, with networth expected to cross ₹1 trillion. In the past one month, the stock price of the Shriram Group company has surged 19 per cent. It has doubled from its 52-week low of ₹493.6 touched on January 20, 2025.
L&T Finance share price was up 2 per cent to ₹321.90 in the intra-day deal. The stock of L&T Group is quoting higher for the third straight day, surging 7 per cent during the period. Shares of IIFL Finance are also up 2 per cent to ₹621.85, gaining 5 per cent in the past three trading days. CATCH STOCK MARKET UPDATES TODAY LIVE
What’s driving Shriram Finance, L&T Finance, and IIFL Finance stock prices?
The board of directors of Shriram Finance on December 19, 2025, approved entering into definitive agreements with MUFG Bank for an investment of ₹39,618 crore through preferential issue of equity shares of Shriram Finance. Post the consummation of the transaction, MUFG Bank will hold a 20 per cent stake in Shriram Finance on a fully diluted basis.
Further, MUFG Bank will be granted special rights, including nomination of up to two non-independent directors on the Board of Shriram Finance. The proposed investment, however, is subject to various regulatory and other statutory clearances.
This will support the company’s growth plan over the medium term. Crisil Ratings also expects the transaction to benefit the company’s liability franchise through lower incremental cost of borrowings and should aid in improving its profitability.
Crisil Ratings believes that Shriram Finance has strong structural advantages over its peers, which will support its growth plans and help it maintain a leadership position over the medium term. Nevertheless, the company’s ability to sustain its market position in the NBFC ecosystem will remain monitorable, the rating agency said. ALSO READ | MCX gets target price hike from ICICI Securities on strong volume momentum
Meanwhile, ICICI Securities has maintained ‘Buy’ rating on Shriram Finance with a target price of ₹1,200. The brokerage firm expects steady growth of 15–16 per cent, driven by continued focus on the SME segment. Margin tailwinds from easing cost of funds—supported by a potential credit rating upgrade—and stable asset quality are likely to provide incremental support to valuations following this transaction. Expect RoA to improve to 3.5 per cent in FY28E, it added.
L&T Finance's relatively better navigation of the microfinance institution (MFI) credit cycle and diversification into non-leveraged MFI markets demonstrate its resilience and adaptability. Supported by digital partnerships with major players, L&T Finance is poised for sustainable earnings growth in the years ahead, according to Motilal Oswal Financial Services. It reiterates a ‘Buy’ rating on the stock with a target price of ₹330.
Meanwhile, in the past five years, through the upward interest rate tables, analysts at Elara Capital have seen net interest margins (NIMs) improving for the system (highest levels seen historically ). FY26 has seen a decline in NIMs, but funding cost benefits have cushioned the impact (till date). Looking at the ecosystem, NBFCs are running at higher spreads, and the gap has widened versus banks. The moot question is, will that sustain? The brokerage assigns a low probability towards it.
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