Motilal Oswal Recommends Shriram Finance: Buy Call, Target Rs 1180!

• Motilal Oswal reiterates 'BUY' rating on Shriram Finance (SHFL) with a revised target price of INR 1,180.
• SHFL to allot ~20% equity stake to MUFG Bank for USD 4.4 billion, making MUFG a strategic partner.
• MUFG Bank brings significant capital, funding diversification, treasury expertise, and digital capabilities.
• Capital infusion expected to strengthen SHFL's balance sheet and accelerate AUM growth to 18-20%.
• Motilal Oswal projects SHFL's PAT CAGR at ~26% over FY25-28E, with RoA/RoE of 3.9%/13.6% by FY28.

Why It Matters: Motilal Oswal recommends buying Shriram Finance, citing strategic partnership and strong growth outlook.