Shriram Finance Limited (IN:SHRIRAMFIN)
:SHRIRAMFIN
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Shriram Finance Limited
(SHRIRAMFIN)
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Rating:70Outperform
Price Target:
₹1,020.00
▲(1.11% Upside)
Action:UpgradedDate:02/10/26
Overall score reflects strong operating performance and a bullish technical trend, offset by balance-sheet leverage and weak cash flow quality. Valuation is reasonable but not especially compelling given the modest dividend yield.
Positive Factors
Focused retail & MSME lending franchise
Shriram’s focused retail and MSME lending franchise, emphasizing commercial and used vehicle finance and a branch-plus-digital distribution model, supports durable origination volumes and customer stickiness. This diversified, distribution-led setup underpins sustained loan generation and cross-sell potential over the medium term.
Negative Factors
High leverage / substantial debt
Elevated debt-to-equity and substantial borrowings increase refinancing and interest-rate sensitivity for an NBFC. High leverage constrains financial flexibility, can raise funding costs, and heightens vulnerability to macro or credit shocks, limiting the company’s room to maneuver over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Focused retail & MSME lending franchise
Shriram’s focused retail and MSME lending franchise, emphasizing commercial and used vehicle finance and a branch-plus-digital distribution model, supports durable origination volumes and customer stickiness. This diversified, distribution-led setup underpins sustained loan generation and cross-sell potential over the medium term.
Read all positive factors
Shriram Finance Limited (SHRIRAMFIN) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.93T
Dividend Yield1.08%
Average Volume (3M)235.05K
Price to Earnings (P/E)18.5
Beta (1Y)1.54
Revenue Growth21.24%
EPS Growth22.61%
CountryIN
Employees79,872
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)13.39
Shares Outstanding1,881,565,400
10 Day Avg. Volume215,751
30 Day Avg. Volume235,047
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)2.13
Price to Sales (P/S)2.95
P/FCF Ratio-2.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,200.00Price Target Upside18.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)56.88
Revenue Forecast (FY)₹336.17B
Shriram Finance Limited Business Overview & Revenue Model
Company Description
Shriram Finance Limited, a non-banking finance company, primarily provides commercial vehicle financing services in India. It offers commercial vehicle loans for commercial goods vehicles, passenger vehicles, tractors and farm equipment, and const...
How the Company Makes Money
Shriram Finance primarily makes money through its lending business. Its core revenue stream is interest income earned on loans and financing products extended to customers (such as commercial vehicle and used vehicle finance, MSME/business loans, ...
Shriram Finance Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
65
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 445.19B | 406.43B | 338.86B | 298.62B | 192.88B | 166.83B |
| Gross Profit | 232.76B | 221.88B | 190.83B | 169.31B | 95.53B | 76.28B |
| EBITDA | 151.18B | 131.48B | 102.52B | 88.14B | 36.85B | 34.15B |
| Net Income | 98.64B | 95.54B | 73.66B | 60.11B | 27.21B | 24.99B |
Balance Sheet | ||||||
| Total Assets | 2.99T | 2.94T | 2.48T | 2.11T | 1.42T | 1.30T |
| Cash, Cash Equivalents and Short-Term Investments | 102.02B | 197.79B | 111.73B | 104.90B | 112.88B | 114.49B |
| Total Debt | 1.69T | 1.78T | 1.51T | 1.29T | 929.19B | 903.66B |
| Total Liabilities | 2.39T | 2.37T | 1.99T | 1.67T | 1.16T | 1.08T |
| Stockholders Equity | 606.03B | 564.70B | 489.47B | 435.13B | 260.94B | 217.17B |
Cash Flow | ||||||
| Free Cash Flow | -43.04B | -439.07B | -313.67B | -178.22B | -88.95B | -42.65B |
| Operating Cash Flow | -41.98B | -436.83B | -311.01B | -176.25B | -88.59B | -42.39B |
| Investing Cash Flow | -1.60B | 36.61B | -2.58B | -1.93B | -343.30M | -248.90M |
| Financing Cash Flow | -36.23B | 445.21B | 276.09B | 118.20B | 85.05B | 122.26B |
Shriram Finance Limited Technical Analysis
Positive
1008.80
Price Trends
1008.47
Positive
958.21
Positive
806.36
Positive
Market Momentum
-9.45
Negative
56.45
Neutral
88.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHRIRAMFIN, the sentiment is Positive. The current price of 1008.8 is above the 20-day moving average (MA) of 959.23, above the 50-day MA of 1008.47, and above the 200-day MA of 806.36, indicating a bullish trend. The MACD of -9.45 indicates Negative momentum. The RSI at 56.45 is Neutral, neither overbought nor oversold. The STOCH value of 88.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SHRIRAMFIN.
Shriram Finance Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹1.35T | 27.83 | ― | 0.12% | 27.30% | 20.42% | |
71 Outperform | ₹542.49B | 6.63 | ― | 2.60% | 18.36% | 14.53% | |
70 Outperform | ₹1.93T | 18.52 | ― | 1.08% | 21.24% | 22.61% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | ₹571.06B | 390.61 | ― | ― | -16.19% | -53.19% | |
55 Neutral | ₹292.25B | 5.31 | ― | 1.87% | 4.79% | 13.08% | |
49 Neutral | ₹226.34B | 27.09 | ― | 0.80% | -3.68% | -80.12% |
* Financial Sector Average
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Shriram Finance Limited Corporate Events
Shriram Finance Sees Sharp Cut in Legacy Tax Penalties After Rectification Orders
Apr 1, 2026
Shriram Finance Limited has reported a substantial reduction in tax demand and penalties originally imposed on the erstwhile Shriram City Union Finance Limited by the Commercial Tax Officer, Chennai South, for financial years 2018-19 and 2019-20. ...
Shriram Finance Confirms Compliance With SEBI Dematerialisation Norms
Mar 20, 2026
Shriram Finance Limited has notified the stock exchanges and depositories that it has obtained the required compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The company confirmed that sec...
Shriram Finance to Engage Global Investors at Morgan Stanley India Financials Seminar
Mar 11, 2026
Shriram Finance Limited has scheduled a group virtual meeting with a wide range of funds, analysts, institutional investors and asset managers on March 16, 2026, under the framework of SEBI’s Listing Regulations. The senior management will p...
Shriram Finance Faces Rs 93.82 Lakh GST Demand and Penalty in Tamil Nadu
Feb 1, 2026
Shriram Finance Limited has disclosed that the Commercial Tax Officer, Chennai South, has levied a tax demand and corresponding penalty totaling Rs 93.82 lakh for FY 2022-23, arising from disallowance of input tax credit on reverse charge mechanis...
Shriram Finance Faces GST Penalty Orders Linked to Amalgamated Entity
Jan 28, 2026
Shriram Finance Limited has disclosed that the Office of the Commercial Tax Officer, Chennai South, has issued orders levying tax and equal penalty demands totaling Rs 1.05 crore for FY 2020-21 and Rs 50.35 lakh for FY 2021-22, arising from allege...
Shriram Finance Gains S&P Upgrade to Investment-Grade BBB- Rating
Jan 15, 2026
Shriram Finance Limited announced that SP Global Ratings has upgraded the company’s long-term issuer credit rating and senior secured debt rating to BBB-/Stable from BB+/Stable, and its short-term issuer credit rating to A-3 from B. The move...
Moody’s Turns Positive on Shriram Finance as MUFG Stake Bolsters Capital and Outlook
Jan 9, 2026
Moody’s Ratings has affirmed Shriram Finance Limited’s Ba1 long-term corporate family rating and revised its outlook on the company to positive from stable, reflecting expectations of a stronger business and financial profile. The outl...
Shriram Finance Reports All Physical Share Re-Lodgement Requests Rejected Under SEBI Special Window
Jan 9, 2026
Shriram Finance Limited has disclosed the outcome of a special window, mandated by a recent SEBI circular, for re-lodgement of transfer requests of physical shares between 7 July 2025 and 6 January 2026. During this period, its registrar, Integrat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.