<div id="readability-page-1"><div>ICICI Securities research report on Shriram FinanceShriram Finance (SFL) has entered into a strategic partnership with MUFG Bank (Japan-based), wherein the partner has agreed to invest ~USD 4.4bn for 20% stake in SFL via preferential issue. On a fully diluted basis, MUFG Bank and the existing promoter group led by Shriram Capital Private would own ~20% each. Further, MUFG Bank will have the right to appoint two nominee directors on SFL’s Board, which will further strengthen its governance. Post its merger with SCUF in CY22, this is the second major corporate event in SFL’s journey; the merger brought with it the second wind for growth, as reflected in SFL’s AUM growth accelerating to &gt;15% YoY by Sep’25 vs. STFC’s timid FY19–23 spell of 9%/5%/7%/8%/14% (standalone basis). Similarly, the enhanced capital base may accelerate its growth journey going ahead.OutlookWe estimate revised BVPS at INR 490 vs. INR 393 earlier for FY27E, driven by earnings upgrade of 25% for FY27E. Maintain BUY with a revised TP of 1,225 (INR 920 earlier), valuing SFL at 2.5x FY27E BVPS (earlier: 2.5x Sep’26E)For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Shriram Finance - 22122025 - icici</div></div>

MUFG

ICICI Securities recommends buying Shriram Finance with a target price of Rs 1,225. Shriram Finance has partnered with MUFG Bank, which will invest USD 4.4bn for a 20% stake. This strategic move follows its merger with SCUF, boosting growth. The revised BVPS for FY27E is INR 490, with a 25% earnings upgrade. The stock is valued at 2.5x FY27E BVPS. Investors are advised to consult certified experts before making decisions.

Buy Shriram Finance; target of Rs 1225: ICICI Securities