Shriram Finance Ltd logo

Shriram Finance Ltd

SHRIRAMFIN NSE

Business Overview Shriram Transport Finance Company Ltd is a part of the SHRIRAM Group conglomerate which has a significant presence in the financing business. STFC is engaged in the business of commercial vehicle financing mainly focusing on trucks from preowned to new ones. It's a Deposit-taking NBFC comprising 1,758 branches, 831 rural centers, and partnerships with ~500 private financiers. [1]

AI Verdict: BUY Confidence: 8%

Shriram Finance offers strong profit growth of 32% CAGR over 5 years with a reasonable PE of 23.5x, backed by near-unanimous analyst consensus at 94% buy ratings. While valuation at 2.24x book and declining promoter holding warrant monitoring, the consistent 16% ROE and robust earnings momentum support a buy thesis.

Key Fundamentals

LargecapNBFCFinancial Services
Market Cap
2.4L Cr
Volatility
Moderate
P/E Ratio
19.36
EBITDA
₹35,520 Cr
Return on Equity
14.88%
Debt to Equity
3.96
Book Value
₹448.54
EPS
₹201.17
52W High
₹1,108
52W Low
₹566.5

Technical Indicators

Key Insights

Strengths

2
  • Company has delivered good profit growth of 32.0% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 20.9%

Weaknesses

3
  • Stock is trading at 2.91 times its book value
  • Company has low interest coverage ratio.
  • Promoter holding has decreased over last quarter: -5.08%

Growth Rate

Revenue Growth
15.13% ↗
Net Income Growth
6.16% ↘
Cash Flow Change
69.57% ↗
ROE
-9.05% ↘
ROCE
3.29% ↘
EBITDA Margin (Avg.)
2.66% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

Shriram Finance offers strong profit growth of 32% CAGR over 5 years with a reasonable PE of 23.5x, backed by near-unanimous analyst consensus at 94% buy ratings. While valuation at 2.24x book and declining promoter holding warrant monitoring, the consistent 16% ROE and robust earnings momentum support a buy thesis.

Bull Case 8
  • Exceptional profit growth of 32% CAGR over the last 5 years, well above NBFC sector averages
  • Overwhelming analyst consensus with 93.94% buy ratings (31 out of 33 analysts) and zero sell recommendations
  • Stock has delivered 50% return in the last 1 year, indicating strong momentum and re-rating
  • Consistent ROE of 16% maintained over 3-year, 5-year, and 10-year periods, showing stable return generation
  • TTM profit growth of 22% continues to outpace revenue growth of 10%, indicating improving operating leverage
  • Healthy dividend payout ratio of 20.9% with current yield of 1.08%, providing income alongside growth
  • Large-cap status with market cap of Rs 2,35,375 crore provides liquidity and institutional ownership comfort
  • Long-term compounded sales growth of 17% over 10 years demonstrates durable business model in vehicle and MSME lending
Bear Case 8
  • Stock trading at 2.86x book value (screener data) is elevated for an NBFC, limiting margin of safety
  • Low interest coverage ratio raises concerns about debt servicing capacity in a rising rate environment
  • Promoter holding decreased by 5.08% in the last quarter, signaling potential insider confidence concerns
  • TTM revenue growth has decelerated to 10% versus 5-year CAGR of 23%, suggesting slowing topline momentum
  • 3-year stock CAGR of 43% has front-loaded returns, raising risk of mean reversion at current levels
  • PE of 23.5x is at a premium to traditional NBFC peers, pricing in significant future growth already
  • ROE has stagnated at 16% over the last decade with no visible improvement trajectory despite scale
  • 52-week high and low data unavailable (reported as 0), limiting technical risk assessment

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 5
  • Kotak buy, ₹1,100 target May 26

    Kotak Securities initiated buy at CMP ₹963 with fair value target of ₹1,100. Cited MUFG infusion driving AAA rating, 34% capital adequacy, and 100 bps funding cost reduction over 3 years.

  • Strong Q4FY26 earnings momentum May 26

    Q4FY26 showed AUM growing 14.85% YoY to ₹3.02 trillion, PAT up 41% YoY to ₹30 billion, and NIM expanding 47 bps YoY to 9.1% with borrowing costs down 64 bps.

  • Tractor growth forecast doubled Jun 18

    Shriram Finance revised FY27 tractor and farm equipment volume growth forecast upward to 15-17% from prior 8-10%, nearly doubling the midpoint estimate.

  • ₹6 dividend, July 3 record Jun 13

    Board announced final dividend of ₹6 per share for FY26 with record date July 3 and 47th AGM scheduled for July 10.

  • ESG gains in FY26 Jun 17

    Reported 10% reduction in energy intensity, 13% drop in Scope 1 and 2 emissions intensity, and Green Finance portfolio exceeding ₹1,400 crores in FY26.

Neutral 2
  • Active global investor engagement Jun 19

    Multiple investor meetings scheduled across Mumbai and London through June 2026, including Kotak India Corporate Day, Morgan Stanley India Forum, and BoFa India Conference with firms like ClearBridge, Federated Hermes, Balyasny, Invesco, and JPMorgan.

  • ₹24 Cr block trade on NSE Jun 15

    Block trade of ~2.42 lakh shares executed at ₹996.35 per share totalling ₹24.16 crores, indicating institutional activity in the counter.

TL;DR: Shriram Finance is in a strong position with robust Q4FY26 earnings (41% PAT growth), a transformative MUFG capital infusion delivering AAA rating and structural funding advantages, and an upgraded growth outlook in farm equipment. No material headwinds emerged in the period. Heavy institutional investor engagement and a broker buy recommendation suggest sustained positive momentum, with NIM expected to expand toward 10% and AUM growth of 15-18% annually.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
7,966
8,003
8,555
8,922
9,484
9,605
10,090
10,698
11,454
11,536
11,912
12,171
12,513
Expenses
2,341
2,141
2,454
2,634
2,712
2,661
2,836
3,033
3,293
3,062
3,109
3,397
3,104
Financing Profit
2,265
2,374
2,480
2,581
2,783
2,815
2,903
2,914
2,937
3,073
3,279
3,514
4,073
Fin. Margin %
28%
30%
29%
29%
29%
29%
29%
27%
26%
27%
28%
29%
33%
Other Income
13
41
47
59
87
54
86
1,574
6
6
9
26
18
Interest
3,361
3,488
3,622
3,707
3,988
4,129
4,350
4,751
5,224
5,401
5,525
5,259
5,336
Depreciation
427
132
137
147
153
153
159
162
171
173
174
177
175
PBT
1,851
2,283
2,391
2,494
2,717
2,715
2,830
4,326
2,772
2,906
3,113
3,363
3,917
Tax %
31%
25%
25%
25%
26%
25%
24%
25%
23%
26%
26%
25%
23%
Net Profit
1,288
1,712
1,792
1,874
2,021
2,031
2,153
3,249
2,144
2,159
2,314
2,530
3,021
EPS in Rs
6.86
9.1
9.52
9.94
10.69
10.76
11.39
17.27
11.4
11.48
12.3
13.45
16.06
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
9,177
10,359
10,903
13,502
15,536
16,561
17,422
19,255
30,492
36,388
43,941
48,135
Expenses
2,781
3,447
3,712
3,288
4,171
4,683
4,932
5,816
8,706
10,278
12,279
12,602
Financing Profit
1,691
1,824
1,972
3,805
3,801
3,565
3,402
3,666
8,799
10,523
13,132
13,947
Fin. Margin %
18%
18%
18%
28%
24%
22%
20%
19%
29%
29%
30%
29%
Other Income
2
3
1
127
20
14
14
18
16
25
157
52
Interest
4,706
5,088
5,219
6,409
7,564
8,313
9,089
9,773
12,987
15,588
18,529
21,586
Depreciation
43
38
35
37
43
141
137
135
601
588
645
699
PBT
1,650
1,789
1,938
3,896
3,778
3,439
3,278
3,549
8,214
9,960
12,644
13,300
Tax %
38%
34%
35%
35%
32%
27%
24%
24%
27%
26%
24%
25%
Net Profit
1,028
1,184
1,266
2,549
2,576
2,512
2,499
2,721
6,020
7,399
9,576
10,024
EPS in Rs
8.13
9.35
10
20.14
20.36
19.86
17.71
20.12
32.11
39.2
50.81
53.28
Div. Payout %
22%
19%
7%
10%
11%
5%
18%
20%
22%
23%
19%
20%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
227
227
227
227
227
227
253
271
374
376
376
376
Reserves
9,039
9,949
11,105
13,463
15,736
17,915
21,464
25,824
43,138
48,571
56,094
65,542
Borrowing
46,695
49,790
53,080
82,131
87,914
94,735
1,06,546
1,14,846
1,64,202
1,95,496
2,34,197
2,50,692
Other Liabilities
6,193
8,048
10,034
1,539
1,542
1,389
1,647
1,328
2,858
3,823
3,330
4,764
Total Liabilities
62,154
68,013
74,446
97,360
1,05,419
1,14,266
1,29,910
1,42,268
2,10,573
2,48,266
2,93,998
3,21,375
Fixed Assets
154
152
136
122
147
489
437
418
3,714
3,718
2,914
2,635
CWIP
0
0
0
0
0
0
0
0
66
0
0
0
Investments
3,037
1,340
1,518
2,456
4,126
2,936
3,347
6,971
7,430
9,472
15,788
14,993
Other Assets
58,962
66,522
72,791
94,782
1,01,146
1,10,841
1,26,126
1,34,879
1,99,363
2,35,076
2,75,296
3,03,746
Total Assets
62,154
68,013
74,446
97,360
1,05,419
1,14,266
1,29,910
1,42,268
2,10,573
2,48,266
2,93,998
3,21,375
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-9,611
-5,507
-2,677
-13,142
-5,535
-2,464
-4,239
-8,859
-17,625
-31,101
-43,652
-13,281
Investing
-45
-36
-2
86
-76
-55
-25
-34
5,076
-258
3,630
-241
Financing
7,836
2,822
3,017
13,014
5,550
4,579
12,226
8,505
11,820
27,609
44,521
8,587
Net Cash Flow
-1,819
-2,721
338
-42
-62
2,060
7,962
-388
-730
-3,750
4,499
-4,936
Free Cash Flow
-9,655
-5,543
-2,695
-13,208
-5,611
-2,519
-4,264
-8,893
-17,818
-31,361
-43,903
-13,475
CFO/OP
-141
-72
-28
-120
-37
-12
-24
-57
-66
-106
-126
-26
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
12%
12%
12%
20%
17%
15%
13%
11%
17%
16%
16%
16%

Shareholding Pattern

As of Apr 2026
FIIs 56.13%
Promoters 20.30%
DIIs 18.63%
Public 3.93%
Others 1.01%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Apr 2026
Promoters
26.48%
25.10%
25.58%
26.06%
26.45%
29.30%
29.37%
25.29%
25.51%
25.48%
25.45%
25.43%
25.42%
25.41%
25.40%
25.40%
25.40%
25.39%
25.39%
25.38%
25.38%
20.30%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2.65%
2.65%
0.00%
54.67%
0.00%
53.90%
54.28%
53.29%
53.08%
53.58%
52.62%
49.61%
47.22%
45.15%
56.13%
DIIs
6.53%
11.31%
14.42%
14.70%
13.77%
14.89%
14.19%
11.14%
11.75%
14.67%
15.18%
15.05%
15.69%
15.24%
16.22%
15.94%
15.33%
16.33%
18.66%
21.30%
23.29%
18.63%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
4.61%
4.78%
4.96%
4.60%
4.72%
4.44%
4.47%
3.71%
3.74%
3.53%
3.61%
3.82%
3.92%
3.99%
3.99%
4.40%
4.48%
4.47%
5.10%
4.79%
4.91%
3.93%
Others
62.37%
58.81%
55.04%
54.64%
55.06%
51.37%
51.96%
57.21%
56.35%
56.32%
1.09%
55.70%
1.07%
1.08%
1.09%
1.18%
1.21%
1.18%
1.24%
1.31%
1.27%
1.01%
No. of Shareholders
78,348
78,579
97,976
97,899
1,00,926
93,379
92,254
1,03,554
99,212
92,227
96,873
1,07,254
1,18,031
1,26,529
1,40,680
1,81,398
2,30,821
2,53,512
2,98,608
2,98,475
3,34,705
3,34,706

Documents

Frequently Asked Questions about Shriram Finance Ltd

What does Shriram Finance Ltd do?
Business Overview Shriram Transport Finance Company Ltd is a part of the SHRIRAM Group conglomerate which has a significant presence in the financing business. STFC is engaged in the business of commercial vehicle financing mainly focusing on trucks from preowned to new ones. It's a Deposit-takin...
Where is Shriram Finance Ltd (SHRIRAMFIN) listed?
Shriram Finance Ltd is listed on the Indian stock exchanges. It is listed on NSE: SHRIRAMFIN and BSE: 511218. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Shriram Finance Ltd belong to?
Shriram Finance Ltd operates in the Financial Services sector within the Finance industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Shriram Finance Ltd?
Shriram Finance Ltd has a market capitalisation of approximately ₹244526.46 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Shriram Finance Ltd?
The Price-to-Earnings (PE) ratio of Shriram Finance Ltd is 19.36. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Shriram Finance Ltd?
Over the past 52 weeks, Shriram Finance Ltd has traded between a low of ₹566.5 and a high of ₹1,108. This range helps investors understand the stock's price volatility and recent trading levels.
Does Shriram Finance Ltd pay dividends?
Yes, Shriram Finance Ltd has a dividend yield of 1.06%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Shriram Finance Ltd?
Shriram Finance Ltd has a Return on Equity (ROE) of 14.88%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Shriram Finance Ltd on Tapetide?
On Tapetide, you can view Shriram Finance Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Business Overview Shriram Transport Finance Company Ltd is a part of the SHRIRAM Group conglomerate which has a significant presence in the financing business. STFC is engaged in the business of commercial vehicle financing mainly focusing on trucks from preowned to new ones. It's a Deposit-taking NBFC comprising 1,758 branches, 831 rural centers, and partnerships with ~500 private financiers. [1]

Website shriramfinance.in
CEO Mr. Parag Sharma
Employees 77,724
Listed 1996-12-11
Face Value ₹ 2
Issued Size 1,88,13,62,101

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