Moderate valuation, growth triggers augur well for Shriram Finance stock

The stock reacted badly, falling 5.2 per cent to close at ₹621.85 on Monday on the BSE

Shriram Finance’s (SHFL’s) profit after tax (PAT) rose 10 per cent year-on-year (Y-o-Y) to ₹2,140 crore in the fourth quarter of the financial year 2024-25 (Q4FY25).

 

The FY25 PAT (excluding exceptional gain) grew 15 per cent Y-o-Y to ₹8,270 crore. The Net Interest Income (NII) in Q4FY25 grew 9 per cent Y-o-Y to ₹5,570 crore. However, high credit costs at ₹1,560 crore translated into annualised credit costs of 2.4 per cent. The asset quality deteriorated and net slippages continued to remain elevated at ₹1,400 crore versus ₹1,200 crore in Q3FY25.

 

The stock reacted badly, falling 5.2 per cent to close