Double Dhamaka! Board Is Likely To Announce Stock Split & Dividend: Low PE Multibagger Stock Surges 3.64 Per Cent With Heavy Volume

The company has a market cap of over Rs 1.25 lakh crore with a PE ratio of 17x whereas the industry PE ratio is 25x.

On Friday, shares of Shriram Finance Limited surged 3.64 per cent to an intraday high of Rs 3,373.35 per share from its previous closing of Rs 3,254.95. At the closing bell, shares of the company were trading at Rs 3,344.90 per share, up 2.76 per cent with a spurt in volume by more than 2.35 times on BSE.

Shriram Finance Ltd informed that a meeting of the Board of Directors of the company will be held on Friday, October 25, 2024, inter-alia to consider:

1. Approval of Unaudited Standalone and Consolidated Financial Results for the second quarter and half year ended September 30, 2024.
2. Declaration of interim dividend for the Financial Year 2024-25, if any. The company informed that subject to the approval of the interim dividend for the Financial Year 2024-25 for the same the Record Date for payment of the said interim dividend shall be Thursday, November 07, 2024.
3. Approval of periodical resource mobilisation plan for the issuance of debt securities viz. redeemable non-convertible debentures (NCDs)/ subordinated debentures, bonds on private placement basis and/or public issue in tranches or any other methods of borrowing in onshore/offshore market for the sbusiness of the company.
4. Proposal of alteration in the share capital of the Company by sub-division/stock split of existing equity shares having a face value of Rs 10 each, fully paid up in such manner as may be determined by the Board of Directors, subject to the approval of the members of the company.

Shriram Finance Ltd is a part of the SHRIRAM Group conglomerate which has a significant presence in the financing business. STFC is engaged in the business of commercial vehicle financing mainly focusing on trucks from preowned to new ones. It's a Deposit-taking NBFC comprising 1,758 branches, 831 rural centres and partnerships with ~500 private financiers. 

The company has a market cap of over Rs 1.25 lakh crore with a PE ratio of 17x whereas the industry PE ratio is 25x. The stock is up by 90 per cent from its 52-week low of Rs 1,760.90 per share and gave multibagger returns of 180 per cent in 2 years. Investors should keep an eye on this mid-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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