Shriram Pistons & Rings Ltd. (SHRIPISTON) AI Stock Analysis

• Market Cap: ₹117.85B
• Dividend Yield: 0.31%
• Average Volume (3M): 58.68K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.91
• Revenue Growth: 14.43%
• EPS Growth: 15.60%
• Country: IN
• Employees: 3,887
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 33.60
• Shares Outstanding: 44,049,824
• 10 Day Avg. Volume: 46,207
• 30 Day Avg. Volume: 58,678
• PEG Ratio: 1.11
• Price to Book (P/B): 3.40
• Price to Sales (P/S): 2.29
• P/FCF Ratio: 30.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹3,065.00 ▼(-7.04% Downside)

Shriram Pistons & Rings Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and profit margins. The technical analysis indicates bullish momentum, although the high RSI suggests caution due to potential overbought conditions. The valuation is moderate, with a fair P/E ratio but a low dividend yield. Overall, the stock presents a positive outlook with some areas for improvement in cash flow efficiency and valuation.

Positive Factors

High Profitability

Shriram’s very high gross and EBIT margins reflect strong cost control and likely technical/product differentiation in precision engine components. Durable margin advantage supports reinvestment in capacity, buffers commodity swings, and sustains return generation across medium-term auto cycles.

Low Leverage & Strong ROE

A conservative capital structure and double-digit ROE give the company financial flexibility for capex or working capital needs without stretching liquidity. Low leverage reduces refinancing risk and preserves capacity to pursue strategic investments or navigate cyclical OEM demand shocks.

Consistent Revenue Growth and Cash Alignment

Mid-teens revenue growth with operating cash roughly tracking net income indicates sustainable demand and credible earnings quality. Reliable cash conversion (pre-capex) enables continued investment in tooling and R&D, supporting long-term OEM relationships and aftermarket strength.

Negative Factors

Capex Pressures on Free Cash Flow

Negative FCF growth driven by expansion capex reduces near-term distributable cash and raises execution risk if investments underperform. Over the next several quarters, elevated capex can limit flexibility for dividends, buybacks, or deleveraging until new capacity conversion materializes.

Customer Concentration Risk

Heavy reliance on a few OEM programs concentrates volume and pricing risk: platform cancellations, order timing shifts, or tougher supplier negotiations could materially affect revenue. This structural dependence constrains predictability of medium-term cash flows and margins.

Suboptimal Asset Utilization

Lower-than-ideal asset turnover suggests capacity or working capital inefficiencies that can cap scalable margin expansion. Without productivity or mix improvement, incremental sales may not translate proportionally into higher ROE, limiting durable earnings leverage from recent investments.

Shriram Pistons & Rings Ltd. Business Overview & Revenue Model

Company Description

Shriram Pistons & Rings Limited manufactures and sells automotive components in India. It offers pistons, piston pins, piston rings, and engine valves. The company also provides cylinder liners, crankshafts, connecting rods, cylinder heads, and lubricating oils; fuel, air, cabin, and hydraulic filters; and cylinder head gaskets. It also exports its products. The company serves OEMs operating in the passenger and commercial vehicles, cars/SUVs, two and three wheelers, tractors, off-highway vehicles, and industrial engines markets. The company was incorporated in 1963 and is headquartered in New Delhi, India.

How the Company Makes Money

Shriram Pistons & Rings Ltd. generates revenue primarily through the sale of its core products, including pistons and piston rings, which are essential components in internal combustion engines. The company has established strong relationships with major automobile manufacturers and aftermarket suppliers, creating a steady demand for its products. Revenue is further augmented through strategic partnerships with other industry players and collaborations for research and development, which allow the company to innovate and expand its product line. Additionally, SHRIPISTON may benefit from economies of scale as it increases production, leading to lower per-unit costs and enhanced profitability.

Shriram Pistons & Rings Ltd. Financial Statement Overview

Summary

Shriram Pistons & Rings Ltd. demonstrates strong financial health with robust revenue growth, impressive profit margins, and a stable balance sheet with low leverage. The company’s cash flow management is solid, though there is room for improvement in cash conversion efficiency.

Income Statement

Shriram Pistons & Rings Ltd. has demonstrated robust revenue growth and improved profitability over recent years. The gross profit margin for the latest annual period is 58.1%, indicating strong cost management. Net profit margin has improved to 14.3%, showcasing effective control over expenses. The revenue growth rate year-over-year is 14.9%, driven by increasing demand and operational efficiency. The EBIT margin stands at 43.6%, reflecting efficient operations, while the EBITDA margin is at 20.4%, highlighting substantial earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.21, indicating low leverage. Return on equity is 21.2%, showcasing strong returns generated on shareholders' investments. The equity ratio is 64.2%, reflecting a stable capital structure with significant equity financing. However, there is room for improvement in asset utilization and further enhancement of equity returns.

Cash Flow

Shriram Pistons & Rings Ltd. has a solid cash flow position, with a free cash flow growth rate of -21.0% due to capital expenditures aimed at expansion. The operating cash flow to net income ratio is 0.86, indicating a strong alignment between cash generation and earnings. The free cash flow to net income ratio is 0.53, suggesting good cash conversion, although there is potential for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.76B	35.50B	30.89B	26.09B	20.23B	15.72B
Gross Profit	16.16B	20.62B	12.74B	15.11B	10.25B	8.30B
EBITDA	8.42B	7.24B	7.27B	5.07B	3.34B	2.35B
Net Income	5.25B	5.07B	4.43B	2.93B	1.64B	887.51M
Balance Sheet
Total Assets	0.00	37.29B	31.38B	23.75B	18.50B	17.04B
Cash, Cash Equivalents and Short-Term Investments	9.70B	9.70B	8.75B	6.82B	3.66B	2.77B
Total Debt	0.00	5.08B	4.87B	3.33B	1.57B	1.46B
Total Liabilities	-24.97B	12.32B	11.18B	8.34B	5.95B	5.56B
Stockholders Equity	24.97B	23.94B	19.26B	15.27B	12.55B	11.48B
Cash Flow
Free Cash Flow	0.00	2.69B	3.40B	2.68B	1.56B	1.44B
Operating Cash Flow	0.00	4.34B	4.87B	3.95B	2.19B	1.90B
Investing Cash Flow	0.00	-3.85B	-4.22B	-2.09B	-562.95M	-101.19M
Financing Cash Flow	0.00	-610.40M	-421.59M	929.67M	-907.22M	-279.49M

Shriram Pistons & Rings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3297.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHRIPISTON, the sentiment is Positive. The current price of 3297.2 is above the 20-day moving average (MA) of 2904.49, above the 50-day MA of 2951.33, and above the 200-day MA of 2590.42, indicating a neutral trend. The MACD of -90.70 indicates Positive momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 50.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SHRIPISTON.

Shriram Pistons & Rings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGBBROSLTD	76 Outperform	₹54.20B	16.79	―	1.07%	14.37%	12.68%
SHRIPISTON	73 Outperform	₹117.85B	21.70	―	0.31%	14.43%	15.60%
MINDACORP	69 Neutral	₹134.78B	49.88	―	0.23%	12.99%	2.43%
SHARDAMOTR	66 Neutral	₹48.66B	14.57	―	2.75%	6.96%	6.33%
GABRIEL	64 Neutral	₹132.43B	52.97	―	0.46%	17.87%	21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	59 Neutral	₹32.64B	34.96	―	0.27%	20.41%	-6.50%

Shriram Pistons & Rings Ltd. Corporate Events

Shriram Pistons & Rings Declares Interim Dividend, Plans NCD Issue and Rebranding to SPR Auto Technologies

Shriram Pistons & Rings Limited has reported its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, declared an interim dividend of 50% (Rs 5 per share on a face value of Rs 10) for FY 2025-26, and approved the issue of up to 100,000 secured, rated, listed, redeemable non-convertible debentures aggregating to Rs 10,000 million on a private placement basis. In a move that signals a broader strategic repositioning, the board has also approved a proposed change of the company’s name to “SPR Auto Technologies Limited,” along with alterations to its object clause and complete adoption of new Memorandum and Articles of Association in line with the Companies Act, 2013, all of which will be placed before shareholders via a postal ballot, indicating a potential evolution of its corporate identity and operational scope within the automotive technology space.

Shriram Pistons Board Backs Name Change to SPR Auto Technologies, Interim Dividend and Rs 10 Billion NCD Issue

Shriram Pistons & Rings Limited has announced that its board has approved a proposal to change the company’s name to SPR Auto Technologies Limited, alongside alterations to its Memorandum and Articles of Association and object clause, with shareholder and regulatory approvals to be sought via a postal ballot. In the same meeting, the board approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, declared an interim dividend of Rs 5 per share for FY 2025-26 with a record date of 6 February 2026, and authorised the issuance of up to 100,000 secured, rated, listed, redeemable non-convertible debentures aggregating to Rs 10,000 million on a private placement basis, signalling both a branding transition and a diversified capital-raising plan that could support future growth initiatives.

Shriram Pistons & Rings Schedules Q3 & 9M FY26 Earnings Call With Investors

Shriram Pistons & Rings Ltd. has announced that it will hold a virtual earnings conference call with analysts and investors on February 3, 2026, to discuss its financial performance for the third quarter and nine months of FY26. The online audio call, accessible via prior registration, underscores the company’s efforts to maintain transparent communication with the market and institutional stakeholders in line with SEBI’s disclosure requirements, reinforcing its engagement with the financial community following its recent listing.

Shriram Pistons & Rings Confirms Regulatory Compliance on ₹10 Billion Commercial Paper Issue

Shriram Pistons & Rings Ltd. has confirmed that the Rs 10,000 million commercial paper issued and listed on the NSE’s debt segment on December 26, 2025, with maturity on February 24, 2026, has been managed in full compliance with regulatory and disclosure requirements. In a certificate filed with the stock exchanges, the company’s CFO stated that the commercial paper proceeds have been used for the purposes specified in the disclosure document, all relevant RBI, SEBI and industry guidelines have been adhered to, the company’s bank and institutional facilities remain classified as “Standard,” there has been no material deterioration in financial status that could affect the paper’s credit rating, and no related parties have invested in the instrument, underscoring sound governance and risk management for debtholders and market participants.

Shriram Pistons & Rings Completes Acquisition of Grupo Antolin’s India Businesses

Shriram Pistons & Rings Limited has completed the acquisition of Antolin Lighting India Private Limited (T1) and Grupo Antolin India Private Limited (T2), thereby also indirectly acquiring approximately 99.99% of Grupo Antolin Chakan Private Limited (T3), in line with a previously announced share purchase agreement with Grupo Antolin entities. Following the transaction, T1 and T2 have become wholly owned subsidiaries—with T2 classified as an unlisted material subsidiary under SEBI regulations—and T3 has become a step-down subsidiary, marking a significant expansion of Shriram Pistons & Rings’ group structure and potentially strengthening its capabilities and market position in automotive components and related businesses.

Shriram Pistons & Rings Ltd. Updates on Physical Share Transfer Requests

Shriram Pistons & Rings Ltd. has informed the stock exchanges about the receipt of a report from its Registrar and Share Transfer Agent, Alankit Assignments Limited, regarding the re-lodgement of transfer requests for physical shares. This update pertains to the period from November 7, 2025, to December 6, 2025, and follows a SEBI circular issued on July 2, 2025. The company has complied with the regulatory requirements by displaying the SEBI circular on its website and publishing it in widely circulated newspapers, indicating its commitment to transparency and regulatory adherence.

Shriram Pistons & Rings Updates on Grupo Antolin India Acquisition

Shriram Pistons & Rings Limited announced an update on its acquisition of Grupo Antolin Companies (India). The company held a conference call to discuss the acquisition, which is expected to enhance its market position and operational capabilities. This strategic move is likely to have significant implications for stakeholders, potentially expanding the company’s footprint in the automotive component sector.

Shriram Pistons & Rings Expands with Key Acquisition in Automotive Sector

Shriram Pistons & Rings Limited has announced its acquisition of Antolin Lighting India Private Limited, Grupo Antolin India Private Limited, and Grupo Antolin Chakan Private Limited. This strategic move aims to enhance SPRL’s capabilities and expand its presence in the automotive components industry, particularly in areas independent of powertrain technologies. The acquisition will allow SPRL to strengthen its position in the market and create long-term value for stakeholders. Additionally, SPRL will enter into a Technology Licensing Agreement with Grupo Antolin to ensure continuous access to advanced technologies.