Motilal Oswal Recommends 'Buy' on Shriram Finance; Sets ₹1100 Target

• Shriram Finance to issue INR396.2 billion preferential equity to MUFG Bank Ltd. at INR840.93/share.
• MUFG Bank will hold ~20% stake, becoming a public shareholder, boosting SHFL's growth capital.
• Investment expected to accelerate expansion in CV and MSME lending, enhancing balance sheet and creditworthiness.
• Potential credit rating upgrade to AAA for SHFL due to strengthened funding capacity.
• Motilal Oswal reiterates 'BUY' rating with a target price of INR1,100, projecting 25% PAT CAGR (FY25-28E).

Why It Matters: Motilal Oswal recommends 'Buy' on Shriram Finance, citing MUFG investment and strong growth outlook.