Shriram Finance Limited

Financial Services — Credit Services · NSE

₹939.95−₹3.85 (−0.41%)

DalalBaazaar Score

80 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Low

Driven by negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Shriram Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shriram Finance Limited, a non-banking finance company, provides financing services in India.

IndustryCredit Services

SectorFinancial Services

Employees78,902

Annual revenue₹25,034 Cr

How does it make money?

Turns over ₹25,034 Cr a year. Of every ₹100 of sales, about ₹40 reaches shareholders as profit. Each of its 78,902 employees supports ₹31.7 lakh of revenue a year, the signature of a people-led business.

Net margin40.0%

Revenue / employee₹31.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROE18.5%

Peer median ROE16.5%

What is the outlook?

31 analysts covering the stock expect revenue to grow about 17.1% and earnings to grow about 14.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.1%

Est. earnings growth+14.2%

Analysts31

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +48% while net margin moved +13% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+48%

Margin effect+13%

DalalBaazaar Score

80/ 100

Strong

Weighted across six categories. Every point is explained below.

• P/E of 16.6x is within a normal band
• P/E is close to its own historical median of 16.3x

Quality vs. Valuation

Company Quality

85/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

65/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

16.6x

3Y Median

16.3x

40 monthly readings · mean 16.3x · range 11.4x–21.3x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 16.3x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 17.0x.

vs. its own history

Fair

16.3x median over 40 months · +2%

vs. sector peers

Fair

17.0x median of 4 peers · -2%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

16.6x

P/B

2.68x

EV/EBITDA

—

PEG

0.89

Dividend Yield

1.15%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.9% CAGR
Latest reported year was 42.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 16%✓ 18.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 16.3x✓ 16.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹2.21 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

16.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.68x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹56.63

Profitable

Profitable on a per-share basis

ROE

18.5%

Strong

Strong capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

2.76x

High

High leverage

Revenue Growth (YoY)

42.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

29.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.15%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹13,478 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹939.95

P/E (Forward)

13.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

68.5%

Good

Healthy core-business profitability

Net Margin

50.0%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

55%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

969.6 / 1037.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16,931 Cr	₹19,083 Cr	₹21,987 Cr	₹25,034 Cr	+13.9%
PAT (Net Profit)	₹6,011 Cr	₹7,366 Cr	₹9,554 Cr	₹10,024 Cr	+18.6%
EPS	₹31.97	₹39.14	₹50.75	₹53.25	+18.5%
ROE	13.8%	15.0%	16.9%	15.2%	—
Total Debt	₹1.29 L Cr	₹1.52 L Cr	₹1.79 L Cr	₹1.82 L Cr	+12.2%
Free Cash Flow	-₹17,822 Cr	-₹31,364 Cr	-₹43,906 Cr	-₹13,478 Cr	—

🟢 Revenue has grown at 13.9% a year over 3 years.

🟢 PAT (Net Profit) has grown at 18.6% a year over 3 years.

🟢 EPS has grown at 18.5% a year over 3 years.

🟢 ROE has risen from 13.8% to 15.2% over 3 years (+1.4 pts).

🔴 Total Debt has grown at 12.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3.21 L Cr

Total Liabilities

₹2.55 L Cr

Total Debt

₹1.82 L Cr

Cash & Equivalents

₹6,185 Cr

Operating Cash Flow

-₹13,281 Cr

Capex

-₹196 Cr

Shareholding (proxy)

Institutional Holding

59.6%

Insider Holding

22.2%

Corporate Actions

Next Earnings

30 Oct 2026

Dividend Rate

₹10.8

Ex-Dividend Date

03 Jul 2026

Analyst Consensus

Recommendations

30 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹1,198.31

+27.5% vs CMP

Target Range

₹1,050 – ₹1,340

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

1 mixed5 general

Shriram Finance rallies 7%; what's driving NBFC stock price?

Business Standard, 13 Oct

Shriram Finance Meets Investors at Macquarie Asia Conference

scanx.trade, 13 Oct

Top gainers and losers, Oct 14: Shriram Finance falls 4%, HDFC LIC down 3%, Nestle surges 4%; check list

Upstox, 14 Oct

Market wrap: Nestle India, Infosys, Shriram Finance, HDFC Life top gainers and losers on Nifty and Sensex

The Economic Times, 14 Oct

Shriram Finance Ltd (BOM:511218) Q1 2027 Earnings Call Highlights: Robust Profit Growth and ...

Yahoo Finance, 24 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Shriram Finance Ltd Hits Intraday Low Amid Price Pressure on 14 Oct 2026

MarketsMojo, 14 Oct

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong18/20

🟢Financial HealthStrong17/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong12.8/15

🟡ValuationFair9.3/15

🟢RiskLow7.1/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 10% a year13.9% CAGR
✓Return on equity stays above 16%18.5%
✓Valuation vs its own median of 16.3x16.6x today