Shriram Finance Ltd
Ticker: SHRIRAMFIN
Decent
68/100
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Investing Reference
Price
748.90
Market Cap
140876.19
Debt/Equity
4.1473
ROE %
18.001
PB
2.4947
Promoter %
25.390
Pledge %
0.000
1Y Rev Growth %
25.305
5Y Rev Growth %
21.620
NP Margin %
21.661
NP Margin 5Y Avg %
18.148
Trading Reference
1M Return %
16.747
6M Return %
23.949
1Y Return %
19.293
% Away 52W High
2.791
% Away 52W Low
51.799
Daily Volume
18363853
Investment Verdict
Hold
Score 68/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Momentum
Score 82/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Shriram Finance Ltd shows strong growth potential with solid fundamentals.
✅ Positives
- Robust loan book growth
- Strong asset quality metrics
- Diverse financial services portfolio
⚠️ Negatives
- High competition in the sector
- Regulatory challenges ahead
- Interest rate sensitivity
Verdict
Positive outlook with cautious monitoring required.
Recommendation: Consider buying on dips.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 31/10/2025
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Business Overview
Shriram Finance Ltd is a leading non-banking financial company (NBFC) in India, specializing in providing a wide range of financial services including loans, insurance, and investment solutions. Catering primarily to the underserved segments of the market, it empowers individuals and small businesses to achieve their financial goals. With a strong focus on customer-centric solutions, Shriram Finance plays a crucial role in driving financial inclusion and economic growth in the country.
- Established leader in the Indian NBFC sector
- Focus on underserved customers and small businesses
- Diverse range of financial products and services
- Strong commitment to customer satisfaction
- Contributes to financial inclusion and economic development
Investment Thesis
Shriram Finance Ltd stands out due to its robust promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position the company favorably for sustained growth, making it a compelling investment opportunity for retail investors.
- Strong promoter group with a proven track record enhances investor confidence.
- Expanding digital services offer a substantial growth runway in a tech-driven market.
- Attractive valuation metrics provide a competitive edge over industry peers.
- Diverse financial products cater to a wide customer base, ensuring steady revenue streams.
- Strong focus on customer-centric solutions drives long-term business sustainability.
Opportunity vs Risk
Opportunities
- Strong growth in retail lending
- Expanding digital finance services
- Rising demand for vehicle loans
- Strategic partnerships with fintech
- Robust asset quality management
Risks ⚠️
- Economic slowdown impacts loan demand
- Regulatory changes affecting lending
- High competition in finance sector
- Rising interest rates pressure margins
- Credit risk from borrowers' defaults
Peer Perspective
Shriram Finance Ltd trades at a discount to peers like HDFC Ltd and Bajaj Finance, reflecting concerns over margin stability. A consistent improvement in asset quality and growth acceleration could trigger a rerating.
Future Outlook
Shriram Finance Ltd is well-positioned for growth, driven by strong demand in the retail finance sector. Successful execution of strategic initiatives and effective cost control will be crucial for maximizing shareholder value.
AI FAQs for Retail Users
- Q: What does Shriram Finance Ltd do?A: Shriram Finance Ltd primarily provides financing solutions, including loans and insurance services.
- Q: Is Shriram Finance Ltd a good investment?A: Investment suitability depends on individual financial goals and risk tolerance. Research and consult a financial advisor.
- Q: What are the risks associated with investing in Shriram Finance Ltd?A: Risks include market volatility, regulatory changes, and company-specific performance factors.
- Q: How can I buy shares of Shriram Finance Ltd?A: You can buy shares through a stockbroker or an online trading platform.
- Q: What is the dividend policy of Shriram Finance Ltd?A: The company has a history of paying dividends, but future payments depend on profitability and board decisions.
📊 Stock Investment Checklist (100 Points)
Shriram Finance Ltd • Updated: 2025-09-18 01:02:28
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10BusinessHighThe finance sector is evolving with digital transformation, but competition is intense.
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10GrowthHighConsistent revenue growth, but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are decent, but cash flow is inconsistent.
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8ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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7BalanceHighModerate debt levels, but liquidity is a concern.
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6GovernanceGoodPromoter holding is strong, but some pledging exists.
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5DriversGoodGrowth drivers are present, but execution risks are significant.
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5TechnicalsGoodMarket sentiment is mixed, with low liquidity.
Final Score & Verdict
Score 68 / 100
• Decent
Shriram Finance Ltd shows potential for growth but faces challenges in profitability and market competition. Caution is advised.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 80/100
- Governance: 65/100
- Market Confidence: 72/100