Shares of Shriram Finance fell to an 11-month low on October 26 to emerge as top Nifty loser after the non-bank lender lowered its annual loan growth forecast and warned of higher credit costs, overshadowing a better-than-expected second-quarter profit.
Shares fell as much as 6.13% to Rs 810.20 apiece, extending losses from Friday, and were on track for an eighth consecutive session of declines.
The company cut its assets under management growth forecast for fiscal 2027 to 15%-17% from 18%, citing weak monsoon conditions and geopolitical uncertainty, and flagged pressure on borrowers in drought-hit regions.
At 9:55 am on October 26, Shriram Finance shares were trading 4% lower at Rs 829.6 apiece.
Jefferies said credit costs could remain elevated for another one to two quarters as stress rises in Maharashtra, Karnataka and Telangana. The brokerage maintained its "buy" rating but cut its target price to Rs 1,145 from Rs 1,210.