Shriram Finance Ltd.
Banking · NSE
52-week range
₹563 – ₹1,108
From 52w high
-9.1%
RSI (14)
54.2
vs SMA 50 / 200
↑ 50 · ↑ 200
Shriram Finance (₹1,007.75) is India's largest retail NBFC focused on commercial vehicles and consumer lending, currently trading above its 50-DMA (₹993.85) and 200-DMA (₹839) after a 63.4% gain over the past 12 months. FY26 net profit reached ₹10,024 crore, with Q4 profit up 40% year-on-year and a credit rating upgrade to IND AAA/Stable from India Ratings. The stock carries a trailing PE of 18.85 and a forward PE of 14.45, with D/E of 274.99 — characteristic of a leveraged lending business.
- ✓Quality score of 61 ranks first among 6 Banking sector peers tracked, ahead of AXISBANK (50), BAJFINANCE (51), HDFCBANK (47), BAJAJFINSV (23), and HDFCLIFE (20).
- ✓Five-year earnings CAGR of 40.9% alongside 5-year revenue CAGR of 16.7% indicates profit has grown substantially faster than topline — a margin expansion story over the period.
- ✓RSI at 54.24 (neutral) with price above both major moving averages (50-DMA: ₹993.85, 200-DMA: ₹839) describes a stock in a sustained uptrend without near-term overbought readings.
- ✓India Ratings upgraded Shriram Finance to IND AAA/Stable and the RBI approved its subsidiary's primary dealer licence — two regulatory/credit milestones noted in the April 2026 news cycle.
- ✗D/E of 274.99 is rising by trend; FCF-positive years recorded = 0, meaning the business has not generated free cash surplus in any tracked year — all growth has been debt-financed.
- ✗ROE above 15% in only 3 of the available historical years; consistency score of 56 out of 100 reflects an uneven capital-efficiency record despite the strong recent profit run.
- ✗Profit margin of 48.41% and ROE of 16.38% are strong in isolation, but the forward PE of 14.45 (vs trailing 18.85) implies the market is embedding ~30% earnings growth for the next year — a miss on that expectation would compress the valuation gap.
- ✗Peer priceChange1Y data is unavailable for all 5 sector comparators, making it impossible to assess whether Shriram Finance's 63.4% 1-year gain reflects outperformance or tracks the sector.
- ·FY26 full-year net profit of ₹10,024 crore was reported alongside a dividend of ₹10.80 per share; Q4 standalone profit was flagged as up 40% year-on-year across multiple news sources (April 24, 2026).
- ·India Ratings upgraded the company to IND AAA/Stable in April 2026, and the RBI approved a primary dealer licence for a Shriram Finance subsidiary — events that may affect its cost-of-funds profile going forward.
- ·One headline (Rediff MoneyWiz, April 24) specifically flagged West Asia geopolitical risk as a concurrent factor even alongside the strong Q4 result — a pointer to the macro sensitivity of commercial vehicle loan demand.
- ?Given that FCF has never been positive in the tracked period, how does Shriram Finance's capital recycling model compare to other NBFC peers, and at what leverage level does the D/E trend become a solvency consideration?
- ?The forward PE of 14.45 vs trailing PE of 18.85 embeds a significant earnings-growth assumption — what specific segments (CV lending, two-wheelers, personal loans) are expected to drive that expansion, and what happens to the valuation if AUM growth comes in below the 18% guidance cited in news?
- ?With a credit rating now at IND AAA/Stable, how might Shriram Finance's borrowing cost trajectory differ from sub-AAA NBFC peers, and does that structural advantage appear in the 5-year margin data?
- ?The 63.4% 1-year price gain occurred alongside West Asia risks flagged by analysts — to what extent does SHRIRAMFIN's commercial vehicle loan book have geographic or sector concentration in trade-sensitive industries that could be affected by prolonged geopolitical disruption?
PE
18.9
Forward PE
14.4
ROE
+16.4%
Profit margin
+48.4%
D/E
274.99
Dividend yield
+1.4%
Quality score
61/100
ROE 5y above 15%
3/5 yrs
FCF 5y positive
0/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.