InCred Equities - Shriram Finance Limited

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	233,798	272,001	327,748	400,975
Total Non-Interest Income (Rsm)	251	301	361	433
Operating Revenue (Rsm)	234,049	272,302	328,109	401,408
Total Provision Charges (Rsm)	(53,117)	(48,674)	(61,341)	(76,679)
Net Profit (Rsm)	81,042	103,522	124,801	154,598
Core EPS (Rs)	42.87	55.05	66.36	82.20
Core EPS Growth	12%	28%	21%	24%
FD Core P/E (x)	14.76	11.50	9.54	7.70
DPS (Rs)	10.00	15.00	15.00	20.00
Dividend Yield	1.58%	2.37%	2.37%	3.16%
BVPS (Rs)	297.7	354.5	420.9	503.1
P/BV (x)	2.13	1.79	1.50	1.26
ROE	15.5%	16.8%	17.1%	17.8%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income	233,798	272,001	327,748	400,975
Total Non-Interest Income	251	301	361	433
Operating Revenue	234,049	272,302	328,109	401,408
Total Non-Interest Expenses	(64,987)	(76,943)	(90,681)	(107,684)
Pre-provision Operating Profit	162,609	188,260	229,619	285,135
Total Provision Charges	(53,117)	(48,674)	(61,341)	(76,679)
Operating Profit After Provisions	109,493	139,586	168,278	208,455
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	109,493	139,586	168,278	208,455
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	109,493	139,586	168,278	208,455
Exceptional Items
Pre-tax Profit	109,493	139,586	168,278	208,455
Taxation	(28,450)	(36,064)	(43,477)	(53,858)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	81,042	103,522	124,801	154,598
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	81,042	103,522	124,801	154,598

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits
Avg Liquid Assets/Avg Assets	88.7%	90.4%	91.6%	91.9%
Avg Liquid Assets/Avg IEAs	106.4%	106.4%	104.6%	104.9%
Net Cust Loans/Assets
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans
Asset Risk Weighting
Provision Charge/Avg Cust Loans
Provision Charge/Avg Assets
Total Write Offs/Average Assets

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Gross Loans	2,453,928	2,888,561	3,466,373	4,250,360
Liquid Assets & Invst. (Current)
Other Int. Earning Assets
Total Gross Int. Earning Assets	2,453,928	2,888,561	3,466,373	4,250,360
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	2,453,928	2,888,561	3,466,373	4,250,360
Intangible Assets
Other Non-Interest Earning Assets	119,027	121,912	146,428	175,875
Total Non-Interest Earning Assets	166,232	132,168	156,685	186,131
Cash And Marketable Securities	213,657	126,519	163,318	216,334
Long-term Investments	155,987	149,277	174,487	196,256
Total Assets	2,989,805	3,296,525	3,960,863	4,849,082
Customer Interest-Bearing Liabilities
Bank Deposits	2,341,973	2,589,854	3,125,247	3,853,333
Interest Bearing Liabilities: Others
Total Interest-Bearing Liabilities	2,341,973	2,589,854	3,125,247	3,853,333
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	30,531	39,951	44,096	49,631
Total Liabilities	2,372,504	2,629,806	3,169,343	3,902,964
Shareholders Equity	562,826	666,720	791,520	946,118
Minority Interests
Total Equity	562,826	666,720	791,520	946,118

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	16.0%	16.3%	20.5%	22.3%
Operating Profit Growth	14.5%	15.6%	21.5%	23.7%
Pretax Profit Growth	13%	27%	21%	24%
Net Interest To Total Income	99.9%	99.9%	99.9%	99.9%
Cost Of Funds	8.79%	8.70%	8.26%	8.03%
Return On Interest Earning Assets	17.8%	17.6%	17.1%	17.0%
Net Interest Spread	9.02%	8.93%	8.87%	9.02%
Net Interest Margin (Avg Deposits)
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	33%	26%	27%	27%
Interest Return On Average Assets	8.61%	8.65%	9.03%	9.10%
Effective Tax Rate	26.0%	25.8%	25.8%	25.8%
Net Dividend Payout Ratio	4.7%	5.5%	4.5%	4.9%
Return On Average Assets	2.99%	3.29%	3.44%	3.51%

(91) 22 4161 1553 meghna.luthra@incredresearch.com

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Market Data

Source: Bloomberg