Shriram Finance Shares Tumble as Analysts Cut Price Targets

Shriram Finance shares saw a sharp decline of over 6% on Monday. This downturn followed adjustments to target prices by prominent brokerages including Jefferies, Citi, and Motilal Oswal, subsequent to the company's Q2 financial results. Despite the stock's fall, all three institutions reiterated their 'Buy' recommendations.

The NBFC reported a substantial 59% year-on-year increase in its standalone net profit for the quarter ending September 2026, reaching Rs 3,677 crore. This growth was propelled by a significant rise in net interest income (NII) and a reduction in finance costs. The net interest margin also showed improvement, climbing to 9.52% from 8.19% a year prior.

Brokerages expressed concerns regarding potential increases in credit costs and rural economic stress. Jefferies reduced its target price to Rs 1,145 from Rs 1,210, while Citi and Motilal Oswal also lowered their targets to Rs 1,100 and Rs 1,155, respectively. These firms highlighted accelerating asset under management (AUM) growth and resilient margins, even as they noted elevated credit cost guidance for the near term.

In the past week, Shriram Finance shares have fallen more than 12%, and over 18% in the last month. Year-to-date in 2026, the stock has declined over 20%. However, looking at longer timeframes, the shares have delivered significant returns, gaining approximately 14% in the past year, over 126% in three years, and 166% in five years.