Shriram Finance (SHRIRAMFIN)
STALWARTFairStock Score: 51/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,009.3 |
| Market Cap | ₹2,03,092.15 Cr |
| P/E Ratio | 22.2 |
| ROCE | 10.95% |
| ROE | 15.09% |
| Dividend Yield | 0.92% |
| Profit Growth | -3.25% |
| Debt/Equity | 0 |
| Sales Growth | 13.76% |
| Free Cash Flow | ₹-40,02,200 Cr |
| Promoter Holding | 20.3% |
| 52-Week Range | ₹566.5 — ₹1,108 |
| Sector | Finance |
| Book Value | ₹322.09 |
Strengths
- Strong profit growth of 18.1% showing robust business expansion
- Healthy sales growth of 13.8% indicating market share gains
- Significant market presence with Rs 2L Cr market cap in NBFC space
Concerns
- High P/E ratio of 22.2 suggesting premium valuation vs historical norms
- Low DhanIQ Score of 3/10 indicating potential overvaluation or quality issues
- Modest dividend yield of 0.9% offering limited income returns
AI Analysis
Shriram Finance is a Stalwart company — a leading Non Banking Financial Company operating in India's consumer lending space. Trading at Rs 1,100 per share with a market cap of Rs 2 lakh crore, the company commands significant market presence. The data indicates mixed signals for potential investors. On the positive side, Shriram Finance demonstrates strong growth momentum with profit growth of 18.1% and sales growth of 13.8%, suggesting robust business expansion. However, the P/E ratio of 22.2 appears elevated compared to historical norms for NBFCs, indicating investors are paying a premium for future growth expectations. The Return on Capital Employed of 10.9% shows decent efficiency in capital utilization, though not exceptional for the financial services sector. The dividend yield of 0.9% remains modest, typical for growth-oriented financial companies. The concerning aspect is the DhanIQ Score of 3 out of 10, classified as WEAK, which suggests potential headwinds or overvaluation concerns. Analysis suggests investors may consider monitoring the company's loan portfolio quality, regulatory environment changes, and whether the current growth rates can justify the premium valuation. The acceleration potential exists given India's growing consumer credit market, but execution consistency will be crucial for sustained performance.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer