Shriram Finance share price target raised to as high as ₹1,225 by analysts, projecting 33% upside
Published on 22/12/2025 08:02 AM
Shriram Finance share price target raised to as high as ₹1,225 by analysts, projecting 33% upside38 analysts have coverage on Shriram Finance now, of which 34 have a "buy" rating, three say "hold", while one has a "sell" rating on the stock. ICICI Securities has the highest price target on the stock on the street at ₹1,225, projecting a potential upside of 33% from Friday's close.By Hormaz Fatakia December 22, 2025, 8:02:16 AM IST (Published)2 Min ReadShriram Finance Ltd.'s share price target has been raised by nearly every analyst tracking the stock after the mega $4.4 billion deal with Japan's MUFG, which was announced on Friday.
The management will also be addressing the media later at noon on Monday, December 22.
Shriram Finance's deal with MUFG has now become the largest ever deal in the Indian Financial Services space, taking the total transaction value this year past $11 billion.
38 analysts have coverage on Shriram Finance now, of which 34 have a "buy" rating, three say "hold", while one has a "sell" rating on the stock. ICICI Securities has the highest price target on the stock on the street at ₹1,225, projecting a potential upside of 33% from Friday's close.
Brokerage firm Nomura has maintained its "buy" rating and raised its price target on the stock to ₹1,140.
The brokerage believes that deal will result in a Book Value Per Share accretion of 24%, a dilution in the Return on Equity (RoE) of 3.4 basis points, but its Return on Assets (RoA) can expand up to 3.7%.
It expects a big upswing in Shriram Finance's growth outlook and as a result, it has lifted its Assets Under Management (AUM) growth outlook to 20% from 17% earlier.
Jefferies has also raised its price target on Shriram Finance to ₹1,080, while maintaining its "buy" rating.
The brokerage said that the deal will lift Shriram Finance's tier-1 capital ratio to 30%, increasing the prospects of a credit rating upgrade and boosting the company's competitiveness in the new CVs and MSME segment.
Factoring in the capital raise, Shriram Finance's financial year 2027-2028 estimated Earnings Per Share (EPS) may fall between 6% and 7%, but its book value per share would rise by 25% and 20% respectively over the next two years.
At 1.9 times, financial year 2027 estimated book value, valuations seem reasonable for Jefferies.
Shares of Shriram Finance ended 4.1% higher on Friday at a record high of ₹905.1. The stock is up 55% so far in 2025.Continue ReadingTagsshare market todayShriram Finance