Shriram Finance's target Rs 3050: IIFL Securities's Top Stock to Buy Today
IIFL Securities issued a buy call on Shriram Finance on August 16, recommending the stock at the current market price of Rs 2963.85. The target price for Shriram Finance has been set at Rs 3050, indicating a potential upside of around 3%. The brokerage firm is positive on the stock due to the company's strong fundamentals, including its healthy loan growth, improving asset quality, and steady profitability.
About Shriram Finance:
Shriram Finance Limited (SFL) is a leading non-banking finance company (NBFC) incorporated in 1993 and headquartered in Chennai, India. It offers a comprehensive range of financial services, including vehicle financing, business loans, personal loans, and investment products. SFL has a wide distribution network with over 3,900 branches across India, serving over 4 million customers. The company is a part of the Shriram Group, one of India's leading financial conglomerates. SFL is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
52 Week Price Trend:
Shriram Finance (NS:SHRIRAMFIN), a leading financial services provider in India, has witnessed a significant surge in its share price. Trading at Rs 2963.85, the stock has gained over 13% from its 52-week low of Rs 1190, indicating strong investor confidence. The company's robust financial performance, expansion plans, and initiatives in digital transformation have likely contributed to this price appreciation. However, it's important to note that a stock's future performance can be influenced by various factors, and investors should conduct thorough research before making any investment decisions.
Stratzy's MOST Analysis:
According to Stratzy's MOST framework, SHRIRAMFIN has been rated AA-, indicating a low fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend. SHRIRAMFIN has received strong scores in each of these areas, demonstrating its overall financial stability and growth potential. The AA- rating suggests that SHRIRAMFIN is a relatively safe investment with a low likelihood of experiencing significant financial difficulties or losses.
Company's Fundamentals:
Shriram Finance (NSE:SHRIRAMFIN) stands as a publicly traded company on the National Stock Exchange (NSE) of India. Currently, the stock exhibits a Price-to-Earnings (PE) ratio of 14.06, indicating that investors are willing to pay ₹14.06 for every ₹1 of its earnings. Additionally, the Price-to-Book (PB) ratio of 2.02 suggests that the company's market value is twice its book value. Lastly, the Dividend Yield of 1.41% implies that investors can expect to receive ₹1.41 in dividends for every ₹100 invested in the stock. These financial ratios provide valuable insights into the company's valuation, profitability, and dividend-paying capacity, enabling investors to make informed investment decisions.
Fundamental and Technical information provided in this blog were last updated on 16 Aug, 2024
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