SharkNinja shares soar 11% as third quarter results crush expectations
Investing.com - CLSA has raised its price target on Shriram Finance Ltd (NS:SHFL) to ₹840 from ₹735 while maintaining an Outperform rating following the company’s quarterly earnings report.
The non-banking financial company reported second-quarter fiscal year 2026 profit after tax that slightly exceeded CLSA’s estimates, supported by lower credit costs. Assets under management grew approximately 16% with 8% disbursement growth, driven by strong performance in gold loans, which increased 31%, alongside steady commercial vehicle and passenger vehicle growth of 14-15%.
Shriram Finance’s margin improved by about 10 basis points quarter-over-quarter due to a lower cost of funds, with further benefits expected as excess liquidity declined in late September. Asset quality remained broadly stable with gross stage 3 assets at 4.6% and credit costs at 1.9%, below the company’s guidance.
The company has announced leadership changes, with current Managing Director and Chief Financial Officer Parag Sharma set to take over as Managing Director and Chief Executive Officer. Shriram Finance will also appoint two new Chief Operating Officers and a Chief Strategy Officer from within its senior team.
CLSA has increased its fiscal years 2026-2028 estimates by 2-4% and rolled forward its target price to reflect these developments.
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