SHRIRAMFIN.NS Stock Today: January 05 — MUFG Deal, AAA Cut Funding Costs
Shriram Finance stock is in focus on January 5 as investors weigh a CARE AAA upgrade and the pending MUFG capital infusion. Shriram Finance stock trades close to its 52-week high, supported by expectations of 30–100 bps lower funding costs and faster AUM growth. The stock’s recent quote was Rs 1,010.35, with valuation near 19.3x TTM EPS. We also note the symbol SHRIRAMFIN.NS for investors tracking live moves and upcoming catalysts this month.
Price, trend, and valuation today
Shriram Finance stock hovered near Rs 1,010.35 in the recent session, with a day range of Rs 1,007.20 to Rs 1,025.00 and a 52-week high of Rs 1,025.60. The stock is above its 50-DMA at Rs 846.80 and 200-DMA at Rs 696.48, signaling strong upward momentum. Valuation sits at 19.32x TTM EPS and 3.14x P/B, with a TTM dividend yield near 1.02%.
Trend strength is elevated. RSI at 78.22 and MFI at 91.61 indicate an overbought setup, while ADX of 53.00 confirms a strong trend. ATR at 24.30 suggests moderate near-term volatility. Bollinger upper band stands near Rs 1,038.10. OBV of 283.7 million reflects firm accumulation. Traders may expect consolidation if momentum cools, though structural drivers stay supportive.
MUFG deal: cheaper liabilities and growth runway
Management expects the MUFG capital infusion of about $4.4 billion to reduce cost of funds by roughly 50–100 bps, improving margins and competitiveness in deposits and market borrowings. This aligns with public commentary that funding costs should fall after the deal closes, pending approvals. See coverage here: New Indian Express.
Shriram Finance stock is leveraged to a larger vehicle finance cycle and cross-sell to preferred customers. Management guides faster AUM growth near 20% over the next 12–24 months as liabilities turn cheaper and asset quality improves. The strategy favors disciplined underwriting in commercial vehicles and selective segments, aiming to protect spreads while scaling core products and deepening customer relationships.
CARE AAA upgrade: NCD rates outlook
The CARE AAA upgrade should lower incremental NCD rates by about 30–40 bps, improving blended cost of funds. This also widens the investor base for bonds and reduces reliance on higher-cost borrowings. Reference: Business Standard. Combined with the MUFG capital infusion, the impact on liability costs can be meaningful through FY26.
A stronger rating and sponsor support allow longer-tenor issuances at finer spreads, improving ALM and interest coverage over time. Lower all-in coupon costs help defend net interest margins even if competition rises. It also provides flexibility to time public and private placements, diversify lenders, and maintain liquidity buffers while supporting growth in secured retail assets.
Brokerage view and key catalysts
Emkay retained a BUY with a target of Rs 1,100, citing cheaper liabilities, margin tailwinds, and improving asset quality. Shriram Finance stock at 19.3x TTM EPS appears reasonable given the AUM growth outlook and better funding profile. P/B near 3.14x reflects rising return metrics. Execution on cost of funds and credit performance will be key to sustaining premium multiples.
Key monitorables: deal closure and regulatory approvals for the MUFG transaction, Q3 FY26 results on January 30, 2026, and pricing for upcoming NCDs post-AAA. Watch RBI policy signals, deposit traction, and credit costs in vehicle finance. For quick tracking, use the live page for SHRIRAMFIN.NS and compare movements around results, bond issuances, and rating-sensitive events.
Final Thoughts
Shriram Finance stock sits near record levels as two drivers converge: the CARE AAA rating and the pending MUFG capital infusion. Together, they point to 30–100 bps lower funding costs, stronger margins, and faster AUM growth near 20%. The setup looks constructive, but timing matters. We would watch for consolidation after a sharp run and use dips toward moving averages for incremental entries. Track three items closely this month: MUFG approvals and timelines, NCD pricing post-AAA, and Q3 FY26 asset quality trends. If spreads hold and credit costs stay benign, the path to the Rs 1,100 brokerage target strengthens. Risk control remains essential while momentum stays elevated.
FAQs
The near-term setup is positive, driven by expected lower funding costs and faster AUM growth. However, technicals are overbought, so entries on dips may offer better risk-reward. Long-only investors can accumulate gradually while tracking MUFG deal closure, NCD pricing, and asset quality in upcoming results.
Management commentary suggests the MUFG capital infusion could lower cost of funds by roughly 50–100 bps, improving margins and lending competitiveness. The benefit will likely phase in as approvals complete and liabilities reprice. Monitor timelines, coupon trends, and deposit traction to gauge realized savings in FY26.
Post-AAA, fresh NCDs could price about 30–40 bps lower, widening the investor base and improving tenor flexibility. Combined with sponsor support, this should enhance liability quality and help sustain net interest margins, provided competitive pressure and rate volatility remain contained over the next few quarters.
Watch for delays in MUFG approvals, slower-than-expected reduction in coupon costs, and any pickup in credit costs in vehicle finance. A sharp rate spike or weaker demand could pressure margins. Also track deposit mix, ALM profile, and growth discipline to ensure spreads stay resilient as the franchise expands.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
