Finance
Smart Money: Smart money has been increasing their position in the stock.
Past Returns: Outperforming stock! In past three years, the stock has provided 27.7% return compared to 14.6% by NIFTY 50.
Size: It is among the top 200 market size companies of india.
Profitability: Very strong Profitability. One year profit margin are 22%.
Growth: Good revenue growth. With 121.5% growth over past three years, the company is going strong.
Momentum: Stock is suffering a negative price momentum. Stock is down -8.8% in last 30 days.
Dilution: Company has a tendency to dilute it's stock investors.
Technicals: SharesGuru indicator is Bearish.
Valuation | |
|---|---|
| Market Cap | 1.16 LCr |
| Price/Earnings (Trailing) | 16.33 |
| Price/Sales (Trailing) | 2.64 |
| EV/EBITDA | 3.17 |
| Price/Free Cashflow | -2.64 |
| MarketCap/EBT | 9.09 |
| Enterprise Value | 1.05 LCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 43.8 kCr |
| Rev. Growth (Yr) | 20.1% |
| Earnings (TTM) | 9.71 kCr |
| Earnings Growth (Yr) | 6.3% |
Profitability | |
|---|---|
| Operating Margin | 26% |
| EBT Margin | 29% |
| Return on Equity | 17.19% |
| Return on Assets | 3.3% |
| Free Cashflow Yield | -37.88% |
Growth & Returns | |
|---|---|
| Price Change 1W | -4.6% |
| Price Change 1M | -8.8% |
| Price Change 6M | 16.8% |
| Price Change 1Y | 14.9% |
| 3Y Cumulative Return | 27.7% |
| 5Y Cumulative Return | 34.2% |
| 7Y Cumulative Return | 12.2% |
| 10Y Cumulative Return | 14.1% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | 3.66 kCr |
| Cash Flow from Operations (TTM) | -43.65 kCr |
| Cash Flow from Financing (TTM) | 44.52 kCr |
| Cash & Equivalents | 10.68 kCr |
| Free Cash Flow (TTM) | -43.88 kCr |
| Free Cash Flow/Share (TTM) | -233.3 |
Balance Sheet | |
|---|---|
| Total Assets | 2.94 LCr |
| Total Liabilities | 2.37 LCr |
| Shareholder Equity | 56.47 kCr |
| Net PPE | 1.03 kCr |
| Inventory | 0.00 |
| Goodwill | 1.19 kCr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.00 |
| Debt/Equity | 0.00 |
| Interest Coverage | -0.35 |
| Interest/Cashflow Ops | -1.21 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 9.9 |
| Dividend Yield | 1.61% |
| Shares Dilution (1Y) | 0.10% |
| Shares Dilution (3Y) | 39% |
Risk & Volatility | |
|---|---|
| Max Drawdown | -7.8% |
| Drawdown Prob. (30d, 5Y) | 66.15% |
| Risk Level (5Y) | 72% |
Updated May 4, 2025
The stock has declined by 2.66% over the past five days despite a year-to-date gain of 13.21%.
Mutual fund and foreign institutional investor holdings have decreased recently, indicating potential investor concerns.
The company experienced a decline of 13.10% in its stock price over the last five days, despite positive long-term projections.
Shriram Finance aims to surpass Rs 3 lakh crore in assets by FY26, driven by a projected 15% loan growth.
The company reported a substantial net profit of Rs 3,246.85 crores in its last quarter.
Shriram Finance has raised over USD 2.8 billion in offshore funding this financial year, enhancing its position in structured finance.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Summary of Shriram Finance's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
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The management of Shriram Finance Limited has provided a positive outlook amidst the current economic climate, focusing on the rural economy's resilience and improved agricultural forecasts. Key forward-looking points from the management include:
Growth Expectations: The company expects an overall growth of 15% for FY'26, with specific segments like used commercial vehicles projected to grow between 12% to 15%. The MSME segment is expected to grow around 20%.
Economic Indicators: India's GDP growth is forecasted at 6.5% for the fiscal year, with improving inflation rates. The RBI's recent repo rate cut to 6% is anticipated to reduce borrowing costs, with improvements expected in the next 3 to 6 months.
Disbursement Growth: The company has reported a disbursement growth of 14.04% YoY, with Q4 FY'25 disbursements totaling Rs. 44,847.93 crores, up from Rs. 39,326.86 crores in the same quarter last year.
Asset Under Management (AUM): AUM has increased by 17.05% over Q4 FY'24, amounting to Rs. 263,190.27 crores.
Net Interest Income and Margins: The net interest income for Q4 FY'25 grew by 13.4% YoY to Rs. 6,051.19 crores, while net interest margin (NIM) has seen a slight decline to 8.25% from 9.02% a year ago. Management expects potential improvement in NIM to around 8.6% following liquidity normalization and the transmission of interest rate cuts.
Asset Quality: The gross Stage-3 assets decreased to 4.55% from 5.45% in Q4 FY'24, indicating an improvement in asset quality. Management is confident the credit cost will stabilize below 2% as the rural economy continues to recover.
Dividend Declaration: A final dividend of Rs. 3 per equity share was recommended, amounting to a total dividend of Rs. 9.9 for FY'25 post-split adjustment.
Overall, management expresses optimism for sustained growth and stability throughout the next fiscal year, backed by the recovering rural economy and improving macroeconomic conditions.
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Question: "Can you tell us how do you see the asset quality trends playing out over the next year? What kind of seasonal patterns do you expect next year?"
Answer: We anticipate that the rural economy will buffer against potential urban slowdowns. Most of our loans are secured, and while we're seeing some temporary stress in specific remote areas, the overall rural situation is improving. We expect credit costs to remain well-managed at around 2.07% for Q4 and aim to keep it below 2% in the upcoming financial year, bolstered by positive monsoon predictions and governmental infrastructure spending.
Question: "What is the reason for the decrease in CV portfolio growth?"
Answer: Growth in the commercial vehicle (CV) segment has been sluggish, hovering around 10%-11% due to flat sales and a lack of transactions in the used vehicle market. We anticipate that used vehicle financing will pick up as economic activity improves. For FY'26, we project CV growth to reach 12%-15%.
Question: "Do you expect any impact on operations if the economic slowdown continues?"
Answer: Our focus on the rural economy largely mitigates risks associated with urban downturns. Approximately 85% of our branches are in semi-urban and rural regions linked to agriculture, so we're confident in maintaining steady operations despite urban sluggishness.
Question: "Can you elaborate on the provisioning costs and how they were impacted?"
Answer: For this quarter, our credit costs increased primarily due to a slight rise in Stage-3 assets and overall portfolio growth. We've been proactive, maintaining our provisioning ratios, and we're not expecting to see significant additional stress or increased costs moving forward.
Question: "What are the expectations regarding credit costs in Q1 and Q2?"
Answer: We're targeting credit costs to remain stable and close to our guidance level of around 2%. The recovery in rural economies from the recent good agricultural output is expected to support this stability, and we do not foresee significant slippage into Stage-3 from the Stage-2 accounts.
Question: "What specific segments are contributing to the slippages?"
Answer: The slippage has been concentrated mainly in certain geographies affected by slower economic conditions, especially in central India, but we're seeing improvements now. The better than expected Rabi crop yields should enhance cash flow and assist in reducing stress levels among borrowers.
Question: "Can you clarify the impact of the recent technical write-off on your financials?"
Answer: The technical write-off of Rs.2,345 crores had no impact on P&L as these were fully provided assets. This move was strategic, enhancing asset quality metrics post adjustment. The gradual approach to maintaining provisioning levels should result in manageable risks moving forward.
Question: "What is the company's perspective on future growth?"
Answer: We're maintaining our growth guidance at around 15%, considering broader economic recovery signals. We believe that an improved rural economy supported by government initiatives can enhance credit demand.
Understand Shriram Finance ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| SHRIRAM CAPITAL PRIVATE LIMITED | 17.85% |
| SHRIRAM VALUE SERVICES LIMITED | 7.11% |
| GOVERNMENT OF SINGAPORE | 5.41% |
| NPS TRUST (Under different Sub accounts) | 1.81% |
| SBI MUTUAL FUND (Under different Sub accounts) | 1.61% |
| KOTAK MAHINDRA MUTUAL FUND (Under different Sub accounts) | 1.48% |
| NEW WORLD FUND INC | 1.21% |
| MONETARY AUTHORITY OF SINGAPORE | 1.2% |
| FIDELITY INVESTMENT TRUST FIDELITY SERIES EMERGING MARKETS OPPORTUNITIES FUND | 1.16% |
| ADITYA BIRLA MUTUAL FUND(Under different Sub accounts) | 1.09% |
| SANLAM LIFE INSURANCE LIMITED | 0.41% |
| FII | 0.03% |
| SHRIRAM OWNERSHIP TRUST | 0.02% |
| SHRIRAM INSIGHT SHARE BROKERS LIMITED | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Shriram Finance against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| BAJFINANCE | Bajaj Finance | 5.68 LCr | 73.15 kCr | -1.50% | +37.40% | 18.76 | 7.76 | - | - |
| CHOLAFIN | Cholamandalam Investment and Finance Co. | 1.26 LCr | 26.15 kCr | -6.50% | +10.30% | 29.65 | 4.84 | - | - |
| SUNDARMFIN | SUNDARAM FINANCE | 55.65 kCr | 8.56 kCr | +1.60% | +12.10% | 29.37 | 6.5 | - | - |
| M&MFIN | Mahindra & Mahindra Financial Services | 35.22 kCr | 19.19 kCr | -4.90% | -12.60% | 13.81 | 1.84 | - | - |
Comprehensive comparison against sector averages
SHRIRAMFIN metrics compared to Finance
| Category | SHRIRAMFIN | Finance |
|---|---|---|
| PE | 16.33 | 25.79 |
| PS | 2.64 | 5.19 |
| Growth | 16.1 % | 8.7 % |
Shriram Finance is a prominent Non-Banking Financial Company (NBFC) in India, with the stock ticker SHRIRAMFIN and a market capitalization of Rs. 116,954.3 Crores.
The company specializes in providing a wide range of financing services, including:
Shriram Finance caters to diverse clientele, including first-time buyers, small road transport operators, individuals, and micro, small, and medium enterprises (MSMEs), which encompass self-employed professionals, dealers, and service providers.
Originally founded as Shriram Transport Finance Company Limited in 1979, the company rebranded to Shriram Finance Limited in November 2022 and is headquartered in Mumbai, India. The company reported a trailing 12-month revenue of Rs. 40,330.2 Crores and a profit of Rs. 9,453.8 Crores over the past four quarters, indicating solid financial health.
Additionally, Shriram Finance provides dividends to its investors, boasting a yield of 1.91% per annum. However, it has diluted the shareholdings of its investors by 39% over the past three years. Notably, the company has experienced remarkable revenue growth of 115.8% in the same period.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
SHRIRAMFIN vs Finance (2021 - 2025)