- Shriram Finance’s net income for 1Q reached 21.56 billion rupees, marking an 8.9% increase year-over-year, closely meeting the estimated 21.52 billion rupees.
- The company’s revenue surged by 20% year-over-year, reaching 115.4 billion rupees.
- Gross non-performing assets slightly improved, reducing to 4.53% from 4.55% quarter-over-quarter, beating the estimated 4.71%.
- Provisions for loan losses decreased by 17% quarter-over-quarter to 12.9 billion rupees, better than the estimated 15.25 billion rupees.
- Total costs rose by 23% year-over-year, amounting to 85.6 billion rupees.
- Other income increased by 30% year-over-year, totaling 61.3 million rupees.
- Net interest income grew by 13% year-over-year, reaching 60.26 billion rupees.
- Assets under management expanded by 3.4% quarter-over-quarter, totaling 2.72 trillion rupees.
- The company has approved a Resource Mobilisation Plan and an Issue of Debt Securities in Tranches.
- Cumulative app downloads increased to 17.7 million from the previous quarter’s 15.7 million.
- Shriram Finance’s shares dropped by 2.9%, closing at 615.00 rupees with 8.5 million shares traded.
- Market sentiment includes 36 buy ratings, 3 hold ratings, and 2 sell ratings.
A look at Shriram Finance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When looking at the long-term outlook for Shriram Finance, Smartkarma Smart Scores reveal a promising future ahead. With high scores in Value, Dividend, and Growth, Shriram Finance showcases strength in these key areas. The company’s commitment to providing consumer finance services, including automobile, commercial vehicle, business, and gold loans in India, positions it well for sustained growth and stability.
However, it’s essential to note that Shriram Finance scored lower in Resilience and Momentum factors. This suggests a possible susceptibility to market fluctuations and slower short-term growth. Despite these challenges, the company’s solid foundation in value, dividends, and growth initiatives bodes well for its overall performance in the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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