Emkay Global Recommends Buy on Shriram Finance; Target Rs 1100

• Emkay Global Financial recommends 'Buy' for Shriram Finance, setting a target price of Rs 1100.
• The recommendation follows Shriram Finance's mega deal of Rs 396.2 billion with MUFG, expected to close by end-FY26.
• Management plans to moderate Cost of Funds (CoF) by 100 bps over two years, retain preferred customers, and increase new vehicle financing.
• This strategy aims for 20% AUM growth, improved asset quality, and 10-15 bps credit cost moderation in the medium to long term.
• Emkay raised FY27-28E AUM growth, cut CoF assumptions, and increased EPS forecasts by 5-8%, leading to a 5% target price lift.

Why It Matters: Emkay Global recommends buying Shriram Finance, citing strategic growth plans and a Rs 1100 target.