Shriram Finance Limited (SHRIRAMFIN) AI Stock Analysis

• Market Cap: ₹1.50T
• Dividend Yield: 1.75%
• Average Volume (3M): 235.05K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.64
• Revenue Growth: 21.24%
• EPS Growth: 22.61%
• Country: IN
• Employees: 79,872
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 12.27
• Shares Outstanding: 1,881,108,200
• 10 Day Avg. Volume: 215,751
• 30 Day Avg. Volume: 235,047
• PEG Ratio: 0.42
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 2.92
• P/FCF Ratio: -2.73
• 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: ₹735.00
• Price Target Upside: -7.70% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹863.00 ▲(8.38% Upside)

Shriram Finance Limited's stock score is driven primarily by its strong financial performance, despite high leverage and negative cash flows. The technical analysis indicates strong bullish momentum, although overbought conditions may lead to a short-term correction. The valuation is reasonable, with a fair P/E ratio and modest dividend yield.

Shriram Finance Limited Business Overview & Revenue Model

Company Description

Shriram Finance Limited (SHRIRAMFIN) is a prominent financial services company in India, primarily focused on serving the underserved and economically weaker sections of society. The company offers a wide range of financial products and services, including commercial vehicle loans, passenger vehicle loans, personal loans, small business loans, and fixed deposits. With a strong presence across the country, Shriram Finance Limited aims to provide accessible and affordable credit solutions to individuals and small businesses, thereby supporting their growth and financial inclusion.

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 focus on improving cash generation and managing debt to enhance financial stability and sustain long-term growth.

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	435.08B	411.24B	338.86B	298.62B	192.88B	173.38B
Gross Profit	231.35B	355.50B	299.87B	262.42B	172.29B	159.52B
EBITDA	117.31B	131.48B	229.36B	88.14B	191.67B	119.48B
Net Income	96.90B	95.54B	73.66B	60.11B	27.21B	24.99B
Balance Sheet
Total Assets	0.00	2.94T	2.48T	2.11T	1.42T	1.30T
Cash, Cash Equivalents and Short-Term Investments	0.00	197.79B	111.73B	104.90B	112.88B	114.49B
Total Debt	0.00	1.78T	1.51T	1.29T	929.19B	903.66B
Total Liabilities	-564.70B	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: 796.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 796.3 is above the 20-day moving average (MA) of 705.87, above the 50-day MA of 650.24, and above the 200-day MA of 633.32, indicating a bullish trend. The MACD of 35.38 indicates Negative momentum. The RSI at 88.81 is Negative, neither overbought nor oversold. The STOCH value of 86.29 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
CHOLAFIN	73 Outperform	₹1.48T	33.14	―	0.11%	31.00%	21.07%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHRIRAMFIN	67 Neutral	₹1.50T	15.18	―	1.75%	21.24%	22.61%
MFSL	58 Neutral	₹549.61B	202.85	―	―	-3.50%	-28.98%
LICHSGFIN	55 Neutral	₹315.65B	5.72	―	1.74%	4.79%	13.08%
MANAPPURAM	49 Neutral	₹225.53B	50.21	―	1.09%	-3.68%	-80.12%

Shriram Finance Limited Corporate Events

Shriram Finance Releases Q2 FY’26 Earnings Call Transcript

Shriram Finance Limited has released the transcript of its investor earnings call for the second quarter and half year ending September 30, 2025. This release provides stakeholders with insights into the company’s financial performance and strategic direction, reflecting its ongoing commitment to transparency and communication with investors.

Shriram Finance Publishes Postal Ballot Notice Advertisements

Shriram Finance Limited has announced the publication of newspaper advertisements regarding a Postal Ballot Notice under Section 110 of the Companies Act, 2013. These advertisements have been published in ‘Financial Express’ in English and ‘Makkal Kural’ in Tamil, and are also available on the company’s website. This move is part of the company’s compliance and communication efforts with its stakeholders, ensuring transparency and adherence to regulatory requirements.

Shriram Finance Releases Q2 Earnings Call Audio

Shriram Finance Limited announced the availability of an audio recording of their earnings call for the second quarter ended September 30, 2025, on their website. This move indicates transparency and accessibility for stakeholders, allowing them to stay informed about the company’s financial performance and strategic direction.

Shriram Finance Reports on Physical Share Transfer Requests for September 2025

Shriram Finance Limited announced a report on the special window for re-lodgement of transfer requests of physical shares for September 2025. The report, prepared by Integrated Registry Management Services Private Limited, highlights that one request was received and processed, but ultimately rejected. This initiative aligns with SEBI’s circular to streamline the transfer process of physical shares, impacting stakeholders by potentially improving the efficiency and transparency of share transfers.

Shriram Finance Announces Trading Window Closure Ahead of Financial Results

Shriram Finance Limited has announced the closure of its trading window in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015. This closure will last from October 1, 2025, until 48 hours after the release of the company’s unaudited financial results for the second quarter and half-year ending September 30, 2025. This measure is part of the company’s commitment to regulatory compliance and transparency, ensuring that insider trading regulations are strictly followed.

Shriram Finance Confirms Regulatory Compliance with SEBI Regulations

Shriram Finance Limited has confirmed compliance with the SEBI (Depositories and Participants) Regulations, 2018, by ensuring that securities certificates have been listed on the stock exchanges. The company’s Registrar and Share Transfer Agent, Integrated Registry Management Services, has verified and processed the dematerialization of securities, ensuring the depository is listed as the registered owner. This announcement reinforces Shriram Finance’s commitment to regulatory compliance and efficient securities management, potentially enhancing its credibility and operational transparency in the financial market.