Shriram Finance Limited (SHRIRAMFIN) AI Stock Analysis

• Market Cap: ₹1.70T
• Dividend Yield: 1.14%
• Average Volume (3M): 235.05K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.66
• Revenue Growth: 21.24%
• EPS Growth: 22.61%
• Country: IN
• Employees: 79,872
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 12.27
• Shares Outstanding: 1,881,280,200
• 10 Day Avg. Volume: 215,751
• 30 Day Avg. Volume: 235,047
• PEG Ratio: 0.42
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 2.92
• P/FCF Ratio: -2.73
• 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: ₹735.00
• Price Target Upside: -18.49% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹863.00 ▼(-4.30% Downside)

Shriram Finance Limited's stock score is driven primarily by its strong financial performance, despite high leverage and negative cash flows. The technical analysis indicates strong bullish momentum, although overbought conditions may lead to a short-term correction. The valuation is reasonable, with a fair P/E ratio and modest dividend yield.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Shriram Finance's products and services, enhancing its market position and supporting long-term business expansion.

Profitability

Improved profitability reflects effective cost management and operational efficiency, which are crucial for sustaining growth and competitiveness in the financial services sector.

Market Position

A robust market position in serving underserved communities provides Shriram Finance with a competitive edge, allowing it to tap into a growing customer base and drive financial inclusion.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.

Negative Cash Flow

Negative cash flow indicates challenges in converting income into cash, which may strain liquidity and hinder the company's ability to fund operations and growth initiatives.

Operational Instability

Operational instability, as indicated by fluctuating EBITDA, may affect the company's ability to maintain consistent performance and could impact investor confidence and strategic planning.

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 construction equipment. The company also provides business loans; fixed and recurring deposits; and working capital loans, including tyre, tax, fuel, and toll finance, as well as vehicle insurance and repair/top-up loans. In addition, it offers challan discounting services; life and general insurance products; consumer finance services; emergency credit line guarantee schemes; stock broking services; and chit and mutual funds. As of March 31, 2022, it operated a network of 1,854 branches. The company also offers its products through 775 rural centers; and partnerships with 500 private financiers. It primarily serves first time buyers, driver-turned-owners, and small road transport operators. The company was formerly known as Shriram Transport Finance Company Limited and changed its name to Shriram Finance Limited in November 2022. Shriram Finance Limited was incorporated in 1979 and is headquartered in Mumbai, India.

How the Company Makes Money

Shriram Finance generates revenue through multiple streams, primarily from interest income on loans provided to customers. The company finances commercial vehicles, personal loans, and SME loans, charging interest rates that reflect the risk associated with each customer segment. Additionally, Shriram Finance earns fees from processing loan applications and other financial services. Insurance products, offered in partnership with insurance providers, also contribute to the revenue through commissions and service fees. The company's extensive network and strong brand reputation allow it to maintain a steady flow of customers, thereby enhancing its earnings potential.

Shriram Finance Limited Financial Statement Overview

Summary

Shriram Finance Limited demonstrates strong revenue and profit growth, indicative of successful business operations. However, high leverage and negative cash flows present potential risks. The company needs to focus on improving cash generation and managing debt to enhance financial stability and sustain long-term growth.

Income Statement

Shriram Finance Limited has shown notable revenue growth from ₹161.13 billion in 2024 to ₹411.24 billion in 2025. The net profit margin improved significantly, indicating enhanced profitability. Gross profit margin also increased, highlighting better cost management. However, fluctuating EBITDA over the years suggests some operational instability.

Balance Sheet

The company's debt-to-equity ratio remains high due to substantial total debt levels, which may pose financial risks. However, the equity ratio indicates a stable capital structure. Return on Equity has improved, reflecting better utilization of shareholder funds. Overall, the balance sheet shows a mix of financial leverage and improved shareholder returns.

Cash Flow

Shriram Finance has faced challenges in generating positive operating cash flow, resulting in negative free cash flow. The free cash flow to net income ratio is unfavorable, indicating potential issues in converting income into cash. However, financing activities have provided necessary liquidity, albeit with an increased debt load.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	425.47B	406.43B	338.86B	298.62B	192.88B	166.83B
Gross Profit	228.21B	221.88B	190.83B	169.31B	95.53B	76.28B
EBITDA	134.07B	131.48B	102.52B	88.14B	36.85B	34.15B
Net Income	96.90B	95.54B	73.66B	60.11B	27.21B	24.99B
Balance Sheet
Total Assets	0.00	2.94T	2.48T	2.11T	1.42T	1.30T
Cash, Cash Equivalents and Short-Term Investments	0.00	197.79B	111.73B	104.90B	112.88B	114.49B
Total Debt	0.00	1.78T	1.51T	1.29T	929.19B	903.66B
Total Liabilities	-564.70B	2.37T	1.99T	1.67T	1.16T	1.08T
Stockholders Equity	564.70B	564.70B	489.47B	435.13B	260.94B	217.17B
Cash Flow
Free Cash Flow	0.00	-439.07B	-313.67B	-178.22B	-88.95B	-42.65B
Operating Cash Flow	0.00	-436.83B	-311.01B	-176.25B	-88.59B	-42.39B
Investing Cash Flow	0.00	36.61B	-2.58B	-1.93B	-343.30M	-248.90M
Financing Cash Flow	0.00	445.21B	276.09B	118.20B	85.05B	122.26B

Shriram Finance Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 901.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 901.75 is above the 20-day moving average (MA) of 849.94, above the 50-day MA of 790.21, and above the 200-day MA of 676.68, indicating a bullish trend. The MACD of 21.98 indicates Negative momentum. The RSI at 72.90 is Negative, neither overbought nor oversold. The STOCH value of 84.85 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHOLAFIN	73 Outperform	₹1.39T	29.79	―	0.12%	27.30%	20.42%
MAHABANK	71 Outperform	₹440.96B	7.24	―	2.62%	18.36%	14.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHRIRAMFIN	67 Neutral	₹1.70T	17.19	―	1.14%	21.24%	22.61%
MFSL	59 Neutral	₹582.17B	359.44	―	―	-16.19%	-53.19%
LICHSGFIN	55 Neutral	₹292.77B	5.30	―	1.88%	4.79%	13.08%
MANAPPURAM	49 Neutral	₹247.54B	55.11	―	0.85%	-3.68%	-80.12%

Shriram Finance Limited Corporate Events

Shriram Finance Releases Q2 FY’26 Earnings Call Transcript

Shriram Finance Limited has released the transcript of its investor earnings call for the second quarter and half year ending September 30, 2025. This release provides stakeholders with insights into the company’s financial performance and strategic direction, reflecting its ongoing commitment to transparency and communication with investors.

Shriram Finance Publishes Postal Ballot Notice Advertisements

Shriram Finance Limited has announced the publication of newspaper advertisements regarding a Postal Ballot Notice under Section 110 of the Companies Act, 2013. These advertisements have been published in ‘Financial Express’ in English and ‘Makkal Kural’ in Tamil, and are also available on the company’s website. This move is part of the company’s compliance and communication efforts with its stakeholders, ensuring transparency and adherence to regulatory requirements.

Shriram Finance Releases Q2 Earnings Call Audio

Shriram Finance Limited announced the availability of an audio recording of their earnings call for the second quarter ended September 30, 2025, on their website. This move indicates transparency and accessibility for stakeholders, allowing them to stay informed about the company’s financial performance and strategic direction.

Shriram Finance Reports on Physical Share Transfer Requests for September 2025

Shriram Finance Limited announced a report on the special window for re-lodgement of transfer requests of physical shares for September 2025. The report, prepared by Integrated Registry Management Services Private Limited, highlights that one request was received and processed, but ultimately rejected. This initiative aligns with SEBI’s circular to streamline the transfer process of physical shares, impacting stakeholders by potentially improving the efficiency and transparency of share transfers.

Shriram Finance Announces Trading Window Closure Ahead of Financial Results

Shriram Finance Limited has announced the closure of its trading window in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015. This closure will last from October 1, 2025, until 48 hours after the release of the company’s unaudited financial results for the second quarter and half-year ending September 30, 2025. This measure is part of the company’s commitment to regulatory compliance and transparency, ensuring that insider trading regulations are strictly followed.

Shriram Finance Confirms Regulatory Compliance with SEBI Regulations

Shriram Finance Limited has confirmed compliance with the SEBI (Depositories and Participants) Regulations, 2018, by ensuring that securities certificates have been listed on the stock exchanges. The company’s Registrar and Share Transfer Agent, Integrated Registry Management Services, has verified and processed the dematerialization of securities, ensuring the depository is listed as the registered owner. This announcement reinforces Shriram Finance’s commitment to regulatory compliance and efficient securities management, potentially enhancing its credibility and operational transparency in the financial market.