Shriram Finance Limited (SHRIRAMFIN) AI Stock Analysis

• Market Cap: ₹1.19T
• Dividend Yield: 2.04%
• Average Volume (3M): 232.67K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.55
• Revenue Growth: 20.27%
• EPS Growth: 25.95%
• Country: IN
• Employees: 79,872
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 11.46
• Shares Outstanding: 1,880,916,500
• 10 Day Avg. Volume: 239,618
• 30 Day Avg. Volume: 232,672
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹765.75
• Price Target Upside: 20.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: ₹681.00 ▲(7.50% Upside)

Shriram Finance Limited's overall stock score is driven by strong financial performance, despite high leverage and negative cash flows. The technical analysis suggests a neutral to slightly bearish trend, while the valuation indicates the stock is reasonably priced with a decent dividend yield. The absence of earnings call and corporate events data limits further insights.

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 Limited generates revenue primarily through interest income from its diverse portfolio of loan products. The company's key revenue streams include commercial vehicle loans, which cater to truck operators and fleet owners; passenger vehicle loans for individual car purchasers; and personal loans offered to individuals for various personal needs. Additionally, small business loans provide capital to entrepreneurs and small enterprises. The interest charged on these loans forms the bulk of the company's revenue. Shriram Finance Limited also earns money through fees and charges related to loan processing, servicing, and other ancillary services. Strategic partnerships with financial institutions and leveraging technology for efficient loan disbursement and collection further bolster the company's earnings.

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 improve cash generation and manage debt to enhance financial stability.

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	368.53B	411.24B	161.13B	298.62B	192.88B	76.07B
Gross Profit	213.23B	175.84B	117.49B	262.42B	172.29B	159.52B
EBITDA	126.59B	131.48B	229.36B	88.14B	191.67B	119.48B
Net Income	95.54B	95.54B	73.66B	60.11B	27.21B	24.99B
Balance Sheet
Total Assets	2.94T	2.94T	2.48T	2.11T	1.42T	1.30T
Cash, Cash Equivalents and Short-Term Investments	197.79B	197.79B	111.73B	163.07B	112.88B	114.49B
Total Debt	1.78T	1.78T	1.51T	1.29T	929.19B	903.66B
Total Liabilities	2.37T	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: 633.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 633.5 is above the 20-day moving average (MA) of 605.01, above the 50-day MA of 623.93, and above the 200-day MA of 620.19, indicating a bullish trend. The MACD of 2.13 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 81.88 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
SHRIRAMFIN	65 Neutral	₹1.19T	12.16		2.04%	20.27%	25.95%
MFSL	65 Neutral	539.24B	199.02	6.20%	―	-3.50%	-28.98%
CHOLAFIN	64 Neutral	1.34T	30.10	18.01%	0.13%	31.00%	21.07%
LICHSGFIN	60 Neutral	325.94B	5.93	14.97%	1.69%	4.57%	15.87%
MANAPPURAM	56 Neutral	242.42B	30.30	9.78%	1.05%	4.83%	-64.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Shriram Finance Limited Corporate Events

Shriram Finance Announces Debenture Buyback Plan

Shriram Finance Limited has announced the outcome of its Banking & Finance Committee meeting, revealing plans for the repurchase or partial redemption of its outstanding senior, secured, rated, listed, redeemable, taxable non-convertible debentures (NCDs) maturing on December 19, 2025. The company has set a limit of Rs.900 crore for this initiative, aiming to manage its financial obligations effectively. The record date for identifying eligible debenture holders is August 5, 2025, with a payment date set for September 2, 2025. This strategic move is expected to impact the company’s financial structure and provide liquidity to debenture holders.