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Shriram Finance Share Price: Shares of Shriram Finance rose to a fresh 52-week high of Rs 937.60 after global brokerages welcomed MUFG Bank’s proposed investment in the company. The NBFC stock was trading around Rs 935, up 3.6 per cent at 10:45 am on Monday.

The stock has gained momentum following the announcement that MUFG Bank will invest Rs 39,618 crore through a preferential issue, acquiring a 20 per cent stake on a fully diluted basis.

The board of Shriram Finance has approved definitive agreements with MUFG Bank Ltd, marking one of the largest foreign direct investments in India’s financial services sector.

The deal is expected to significantly strengthen Shriram Finance’s capital base, improve capital adequacy, and support long-term growth. The transaction is subject to shareholder and regulatory approvals.

Brokerages view this investment as a strong vote of confidence in Shriram Finance, which is India’s second-largest retail NBFC by assets under management.

Based on the stock trading around Rs 935, brokerages see double-digit upside potential from current levels. Citi’s target of Rs 1,110 implies an upside of about 19 per cent, while Nomura’s target of Rs 1,140 suggests an upside of nearly 22 per cent.

Jefferies’ target of Rs 1,060 indicates a potential upside of around 13 per cent.

In contrast, Morgan Stanley’s target of Rs 925 is largely in line with the current price, indicating limited near-term upside from its perspective.

Citi has maintained a Buy rating on Shriram Finance and raised its target price to Rs 1,110 from Rs 870, citing improved growth visibility after the capital infusion.

Similarly, Nomura has reiterated a Buy rating and raised its target to Rs 1,140 from Rs 985. Nomura highlighted MUFG’s 20 per cent stake and representation on the board as a key positive.

While it expects some ROE dilution of 3.4 per cent, it sees BVPS accretion of 24 per cent and believes return on assets could expand up to 3.7 per cent. The brokerage also raised its FY28 AUM growth estimate to 20 per cent from 17 per cent.

Morgan Stanley has maintained an Overweight rating with a target price of Rs 925, calling the MUFG investment a structural positive. It expects long-term benefits in loan growth, business flexibility, cost of funds, and potential credit rating upgrades.

Jefferies has also reiterated a Buy rating and raised its target to Rs 1,060 from Rs 880. It noted that the equity infusion could lift Tier-1 capital to 30 per cent, improving the chances of a AAA credit rating.

While Jefferies factors in a 6–7 per cent EPS dilution for FY27–28, it expects BVPS to rise 25 per cent and 20 per cent, respectively.

Shriram Finance has a market capitalisation of Rs 1.75 lakh crore. The stock is part of the BSE 100 index and operates in the NBFC space.

In terms of price movement, the shares have risen 9.58 per cent over the past week, 13.78 per cent in one month, 49.24 per cent in three months, and 63.05 per cent over the last year.

Over a longer period, the stock is up 249.70 per cent in three years and 399.25 per cent in five years.