Prabhudas Lilladher Recommends 'Buy' on Shriram Finance; Target Rs 1150

• Prabhudas Lilladher maintains a 'Buy' rating for Shriram Finance (SHFL) with a revised target price of Rs 1,150.
• SHFL targets 18%-20% growth across Vehicle finance, Gold, and SME lending segments.
• Credit rating upgraded to AAA Stable by CARE Ratings, expected to lower Cost of Funds (CoF) by 50 basis points.
• Net Interest Margin (NIM) projected to improve by 20 basis points to 9.8% by FY28E.
• FY27/FY28E estimates raised by 4%/7% due to strong AUM growth and favorable margins, with RoA at 3.2% by FY28E.

Why It Matters: Prabhudas Lilladher advises buying Shriram Finance, forecasting strong growth and improved financials.