Shriram Finance Ltd.
NSE: SHRIRAMFINShriram Finance Ltd.: A 30-second snapshot
Shriram Finance (923.30) is an NBFC specialising in commercial vehicle and consumer lending, reporting 5-year revenue CAGR of 16.7% and earnings CAGR of 40.9%. It trades at a trailing PE of 17.35 — below sector peers Bajaj Finance (29.1) and Bajaj Finserv (27.9) — while ranking first among 6 sector peers on quality score (61/100) and second on ROE (16.38%). The stock sits above its 200-DMA (869.78) but 3.8% below its 50-DMA (959.92), down 11.18% over 3 months and 16.67% off its 52-week high.
P/E
17.4
Forward P/E
13.3
ROE
+16.4%
Debt / Equity
274.99
Profit Margin
+48.4%
Div. Yield
+1.5%
5Y ROE > 15%
3/5
5Y FCF > 0
0/5
Quality
68/100
News
4 headlines · 2 positive · 0 negative
Moody's lifts Shriram Finance to investment grade after MUFG's equity infusion - TipRanks
TipRanks
Buy Shriram Finance; target of Rs 1175: Motilal Oswal - TradingView
TradingView
Shriram Finance Ltd stock (INE721A01013): shares edge higher on NSE amid steady NBFC sentiment - AD HOC NEWS
AD HOC NEWS
Shriram Finance Ltd stock (INE721A01013): mixed near-term trading tone after strong multi-year run - AD HOC NEWS
AD HOC NEWS
Recent context
- ·Moody's upgraded Shriram Finance to investment grade in May 2026 following a strategic equity infusion by MUFG, a development that directly addresses the borrowing-cost dimension of its high-leverage NBFC model.
- ·Motilal Oswal published a research note on 3 June 2026 citing a price objective of 1,175, the most recent named-broker research action in the news feed.
- ·Recent news flow characterises the stock as showing a mixed near-term trading tone after a strong multi-year run, while broader NBFC sector sentiment has remained steady.
Strengths
- +Ranks 1st of 6 sector peers on quality score (61 vs peer range 20-53), and 2nd on ROE (16.38% vs sector median approximately 13.5%), with profit margin of 48.41%.
- +5-year earnings CAGR of 40.9% and revenue CAGR of 16.7% reflect sustained loan-book expansion across a long growth cycle.
- +Moody's upgraded Shriram Finance to investment grade following MUFG's equity infusion (May 2026), a credit-rating milestone that lowers cost-of-funds risk.
- +Forward PE of 13.28 represents a 23.5% compression from the trailing PE of 17.35, consistent with market expectations of continued near-term earnings growth.
Weaknesses
- −D/E of 274.99 is extremely elevated even by NBFC standards, with a rising debt trend and zero FCF-positive years on record — the entire loan-book growth has been externally funded.
- −ROE exceeded 15% in only 3 of the tracked historical years, and the consistency score of 56/100 indicates that capital efficiency has been uneven despite the strong 5-year earnings trajectory.
- −Price is 11.18% lower over 3 months and 16.67% below the 52-week high, with the stock trading below its 50-DMA of 959.92; RSI of 43.45 reflects neutral-to-weak near-term momentum.
- −News coverage is sparse at 4 articles, limiting visibility into recent business developments; dividend yield of 1.49% provides modest income relative to the leverage carried.
Open questions
- ?Does the Moody's investment-grade upgrade structurally reduce Shriram Finance's cost of funds, and how might that flow through to net interest margins over the medium term?
- ?With FCF-positive years at zero across the tracked period and D/E at 274.99, what conditions would be required for the company to generate positive free cash flow without decelerating loan-book growth?
- ?Does the forward PE compression from 17.35 to 13.28 reflect a genuine earnings acceleration, or is it driven primarily by base effects from the 5-year CAGR period?
- ?How does Shriram Finance's commercial vehicle and rural lending concentration compare with peers, and what macro variables — vehicle sales cycles, rural income trends — most directly affect its credit-cost trajectory?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| SHRIRAMFIN | Shriram Finance Ltd.You're viewing | 17.4 | +16.4% | 61 |
| Industry avg | across 5 peers | 30.7 | +14.2% | 39 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.1 | +17.9% | 53 |
| AXISBANK | Axis Bank Ltd. | 15.1 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 16.7 | +13.8% | 50 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 27.9 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 64.9 | +11.3% | 20 |
Technical state
Current price
₹923.30
SMA 50
₹959.92
SMA 200
₹869.78
RSI (14)
43.5 (neutral)
From 52w high
-16.7%
1Y return
+43.9%
3M return
-11.2%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 274.99 is structurally extreme for a non-bank lender; the debt trend is classified as rising and FCF-positive years recorded across the tracked period are zero, indicating that all loan-book growth has been funded entirely through external borrowings with no observed free-cash surplus.
- mediumROE exceeded 15% in only 3 of the tracked historical years and the consistency score stands at 56/100, pointing to uneven capital efficiency; the trailing ROE of 16.38% sits just above the 15% threshold with limited historical persistence.
- mediumPrice has declined 11.18% over the past 3 months and is 3.8% below the 50-DMA of 959.92; RSI stands at 43.45 (neutral); the stock is also 16.67% below its 52-week high, indicating material short-term trend deterioration from the 43.94% 12-month gain.
- lowNews sample comprises only 4 articles (2 positive, 2 neutral, 0 negative) — below the threshold for meaningful sentiment inference; the neutral overallLabel rests on a thin base.
Cross-section contradictions
- Moody's upgraded Shriram Finance to investment grade following MUFG's equity infusion (reported May 2026), a positive credit-rating event, yet the stock has declined 11.18% over the same 3-month window — the equity market has not reflected the credit-rating improvement in price.
- The 5-year earnings CAGR of 40.9% and forward PE of 13.28 (vs trailing PE of 17.35) imply strong earnings growth expectations, but FCF-positive years recorded are zero and the debt trend is rising — earnings expansion has occurred without generating observable free-cash flow.
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.
Fundamentals & technicals: refreshed 8 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 6 Jun 2026 · rotates through NIFTY 500 every ~5 days