Execution getting better; earnings in line

Company
29 Apr 2024
5 Min read 
  • Shriram Finance reported 4QFY24 PAT growth of ~49% YoY to ~INR19.5b 
  •  FY24 PAT grew ~20% YoY to ~INR71.9b.
  •  AUM rose ~21% YoY to INR2.25t with disbursements growing ~27% YoY to ~INR393b 
  •  AUM growth of ~5% QoQ.
  •  Asset quality improved with GS3 declining ~20bp QoQ to ~5.5% and NS3 stable QoQ at 2.7% 
  •  PCR on Stage 3 loans declined ~160bp QoQ to ~52%.
  •  Management expects AUM growth of ~15% with CV AUM growth of ~12% and other products to grow >20% 
  •  Intends to maintain NIM at ~9%.
  •  Reiterate BUY with a TP of INR2,950 (premised on 1.7x FY26E BVPS) 
  •  Potential monetization of stake in Shriram Housing can unlock optionality value.
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