Shriram Finance, one of India’s leading non-banking financial companies (NBFC), announced the consolidation of its green finance operations under the newly launched Shriram Green Finance. The company has set an ambitious target of achieving assets under management (AUM) worth ₹5,000 crore (~$588 million) within the next three to four years, the company revealed on Friday.
The green finance vertical will primarily cater to financing electric vehicles (EVs), including two-wheelers, battery charging stations, and renewable energy products. The company plans to build an EV portfolio across India, focusing on key regions such as Karnataka and the National Capital Region (NCR).
The move aligns with India’s growing adoption of electric vehicles, which now account for 2% of the nation’s annual car sales of 4.2 million.
Shriram Finance’s green financing portfolio is currently valued at ₹600 crore to ₹700 crore. The company’s total AUM, as of September 2024, stood at ₹2.43 trillion. The consolidation under Shriram Green Finance is expected to accelerate the company’s efforts to expand its share in India’s burgeoning green economy.
At a press conference, Y.S. Chakravarti, CEO and MD of Shriram Finance, highlighted the company’s focus on electric two-wheelers, noting that it currently finances 7% of such vehicles bought on loans in India. The company aims to increase this share to 20% over the next few years.
On December 23, 2024, Shriram Finance share price saw a 2.80% gain, trading at ₹2,952.30 on the Bombay Stock Exchange (BSE) at 10:25 AM IST. According to BSE data, the stock recorded a total traded volume of 6,089 shares, with a turnover of ₹1.78 crore.
The stock is currently trading at a price-to-earnings (P/E) ratio of 13.81x, based on its trailing 12-month earnings per share (EPS) of ₹207.88. Additionally, its price-to-book (P/B) ratio stands at 2.07.
Shriram Finance Limited, the flagship company of the Shriram Group, is one of India’s largest non-banking finance companies (NBFC) with an AUM exceeding ₹2.43 trillion. Established in 1979, the company specialises in financing pre-owned commercial vehicles, and two-wheelers, and providing loans to small road transport operators and MSMEs.
The company has a diversified portfolio including passenger commercial vehicles, farm equipment, gold, personal, and working capital loans. With a robust network of 3,149 branches and 77,764 employees, Shriram Finance serves over 90 lakh customers across India, leveraging 45 years of expertise in loan origination, asset valuation, and collections.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 23, 2024, 11:09 AM IST
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