Shriram Finance rises as board to consider stock split, dividend on October 25

Shriram Finance shares have experienced a notable uptick, gaining 2.6% on the Bombay Stock Exchange (BSE) to hit an intraday high of ₹3,341.5 on Friday. This increase can be attributed to the company's announcement that its board will convene on October 25, 2024, to deliberate on an interim dividend and a potential stock split, alongside the release of the company's Q2 results. 

Such moves can significantly influence share market investment decisions, providing investors with compelling reasons to keep an eye on Shriram Finance.

Positive market performance

As of 1:48 PM, Shriram Finance shares were trading at ₹3,332.7, reflecting an increase of 2.39%. In contrast, the BSE Sensex rose by 0.44%, reaching 81,361.45 during the same period. Shriram Finance's market capitalisation stood at ₹1,25,305.94 crore, underlining its robust financial position. The company's exchange filing highlighted that the board would consider unaudited standalone and consolidated financial results for the Q2 ending September 30, 2024. This transparency plays a vital role in boosting investor confidence, which is crucial for those engaged in share market investment.

Prospects and key financials

The board's meeting is particularly significant as it will also contemplate the declaration of an interim dividend for the financial year 2024-25 and discuss alterations in the share capital through a sub-division of existing equity shares, which currently have a face value of ₹10 each. After the board's approval, Shriram Finance has set November 7, 2024, as the record date for dividend payments. 

The company reported a net profit of ₹2,030.64 crore in Q1FY25, reflecting an 18.6% increase compared to the previous year. Additionally, the net interest income rose by 21% to ₹5,554.87 crore, compared to ₹4,580 crore in Q1 of the last fiscal year.

Executive Vice-Chairman Umesh Revankar noted improvements in liability costs and credit quality, which have contributed positively to the company's net profit. With a 52-week high of ₹3,652.15 and a low of ₹1,760.90, Shriram Finance has surged by 74.3% over the past year, far outperforming the BSE Sensex's 23% increase.

Key takeaways

• Board meeting date: Shriram Finance's board will meet on October 25 to discuss an interim dividend and stock split alongside Q2 results.
• Share price performance: Shares rose 2.6%, reaching an intraday high of ₹3,341.5.
• Financial growth: The company reported a net profit of ₹2,030.64 crore for Q1FY25, up 18.6% year-on-year.

Strong market position: Shriram Finance's robust performance positions it well for continued share market investment interest, especially with its strategic plans for the future.