SHRIRAMFIN

NBFC sector tailwinds

1. Recent stock movement The stock has seen some volatility recently, with a decline after touching higher levels earlier in the month. Profit booking by traders after a strong rally in the past few months has caused short-term pressure on the share price. 2. Strong lending growth Shriram Finance continues to report healthy growth in its loan book, especially in commercial vehicle financing and MSME lending. Demand for used and small commercial vehicles remains strong, which supports the company’s core business. 3. MUFG strategic investment The company is moving forward with a major strategic partnership with Mitsubishi UFJ Financial Group (MUFG). This investment is expected to strengthen Shriram Finance’s capital position and improve access to international funding. 4. NBFC sector tailwinds The overall NBFC sector outlook in India remains strong, supported by rising credit demand and improving asset quality. Shriram Finance is considered one of the key beneficiaries due to its large presence in vehicle financing. 5. Institutional interest Several domestic and foreign institutional investors remain positive on the company because of steady earnings growth, strong distribution network, and high return ratios.