Antique Stock Broking has initiated coverage on Shriram Finance, a prominent non-banking financial company in India, with a 'Buy' rating. The brokerage expects the company to achieve an 18% compound annual growth rate (CAGR) in both assets under management (AUM) and profit after tax (PAT) over the period from FY26 to FY28. The target price has been set at ₹1,150, which reflects a potential upside of nearly 28% from the current closing price of ₹900.55. Shares of Shriram Finance were trading lower at ₹869.50, down 3.45% at the time of reporting. The company has established a diversified lending portfolio, with a significant focus on commercial vehicle financing, which constitutes 46% of its AUM. The recent capital infusion of $4.4 billion from MUFG is expected to enhance its funding capabilities and lower costs, which will further support margin expansion. Shriram Finance's net interest margins have stabilized at 9-9.5%, an improvement from previous levels. Despite facing challenges such as high fuel prices and geopolitical uncertainties, the company maintains a robust asset quality profile with a 5.9% expected credit loss cover, positioning it well against potential market risks.