Shriram Finance shares crash 6% as Jefferies, Citi, and other brokerages slash target prices after Q2 results. Why do they still say ‘Buy’?
Reported by The Economic Times, not nibnow. We are not the publisher of this story, only the source is.
Investors should care because major brokerages have cut their target prices following second quarter results, signaling caution due to rising credit costs and rural stress. However, the retention of buy ratings suggests confidence in the company's long-term growth potential and strong margins.
Shriram Finance shares fell sharply on Monday after Jefferies, Citi and Motilal Oswal cut their target prices following the NBFC’s Q2 results. Despite concerns over rising credit costs and rural stress, all three brokerages retained their ‘Buy’ ratings, citing strong net interest income, resilient margins and long-term growth potential.
Non-banking financial companies provide financial services and banking products without holding a banking license, often catering to retail customers and rural sectors that traditional banks may not reach. Brokerage firms issue stock ratings and target prices to advise investors on whether to buy, hold, or sell specific shares based on financial performance.
- •Future quarterly results to see if credit costs and rural stress continue to impact financial performance
- •Updates on net interest income and profit margins in subsequent reporting periods
- •Any shifts in brokerage ratings or target prices as market conditions evolve