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Shriram Finance Ltd - Stock Valuation and Financial Performance

BSE: 511218 | NSE: SHRIRAMFIN | Finance - NBFC | Large Cap

Shriram Finance Share Price

645.30 -19.95 -3.00%
as on 18-Jul'25 16:59

Shriram Finance Ltd - Stock Valuation and Financial Performance

BSE: 511218 | NSE: SHRIRAMFIN | Finance - NBFC | Large Cap

DeciZen - make an informed investing decision on Shriram Finance

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Shriram Finance stock performance -

mw4me loader
P/E Ratio (CD):
12.70
Market Cap:
1,21,365.6 Cr.
52-wk low:
493.6
52-wk high:
730.4

Is Shriram Finance Ltd an attractive stock to invest in?

1. Is Shriram Finance Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Shriram Finance Ltd is a average quality company.

2. Is Shriram Finance Ltd undervalued or overvalued?

The key valuation ratios of Shriram Finance Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Shriram Finance Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Shriram Finance Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Shriram Finance:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Shriram Finance Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Operating Income (₹ Cr.)10,35910,90313,46715,52916,55517,42019,25530,47734,96441,83441,834
YoY Gr. Rt. %-5.3%23.5%15.3%6.6%5.2%10.5%58.3%14.7%19.7%-
Adj EPS (₹ ) 10.210.921.922.121.619.820.132.139.250.850.8
YoY Gr. Rt. %-6.9%101.4%1.1%-2.4%-8.5%1.9%59.6%22.1%29.6%-
BVPS (₹ )87.397.3117.6137.1155.8171.6192.9231.4260.1300.1300
YoY Gr. Rt. %-11.4%20.8%16.6%13.7%10.2%12.4%19.9%12.4%15.4%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)1.71.72.82.42.221.93.33.13.50

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income16.8%20.4%29.5%19.7%
Adj EPS19.6%18.7%36.2%29.6%
BVPS14.7%14%15.9%15.4%
Share Price 14% 36.1% 31.9% 15%

Key Financial Ratios

RATIOS \ YEARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)1.92.62.72.83.14.20000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 17.616.916.920.32222.50000-
Margins
Net Profit Margin (%)11.411.618.916.515.114.314.119.720.622.522.8
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)12.211.820.417.314.712.511.317.315.617.916.9

Recent Performance Summary

Total Income has increased 29.52 CAGR in last 3 years

Net Profit has increased 36.18 CAGR in last 3 years

Return on Equity has declined versus last 3 years average to 16.90%

Total income growth is poor in last 4 quarters

Latest Financials - Shriram Finance Ltd.

Standalone Consolidated
TTM EPS (₹) 51.9 50.8
TTM Sales (₹ Cr.) 41,834 41,834
BVPS (₹.) 299 300
Reserves (₹ Cr.) 55,862 56,051
P/BV 2.16 2.15
PE 12.43 12.70
From the Market
52 Week Low / High (₹) 493.60 / 730.43
All Time Low / High (₹) 0.48 / 730.43
Market Cap (₹ Cr.) 1,21,366
Equity (₹ Cr.) 376.2
Face Value (₹) 2
Industry PE 31.8

Management X-Ray of Shriram Finance:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Shriram Finance initiating Coverage - 16 Jun 2023

Shriram Finance is India’s largest NBFC offering a wide array of financial products and services, including vehicle loans, two-wheeler loans, gold loans, personal loans, small business loans, and loans for the purchase of commercial vehicles and equipment. In Nov 22, Shriram group entities – Shriram Transport Finance, Shriram City Union Finance, and Shriram Capital merged to form Shriram Finance ltd. It has combined network of 2,922 branches & workforce of 64,052.

Industry Overview

The Commercial Vehicle (CV) finance industry in India has Assets Under Management (AUM) amounting to approximately Rs.3.6 lakh crore as of March 31, 2022, with banks, Non-Banking Finance Companies (NBFCs) and Anchor Financiers of Original Equipment Manufacturers (Anchor) accounting for 38.5%, 42.3% and 19.2% of the market share respectively.

Affordable housing (usually 5-25 Lakh ticket size) credit for low income group,is a 23.7 Lakh Cr segment. This segment has estimated shortage 100mn units in 2022 as compared to 25mn units in FY07; where in 95% of the housing shortage is expected to be in EWS and LIG segment. Total MSME demand for credit stands at 25 Lakh cr. 

Business Segments

Vehicle Financing:Shriram Finance is a significant player in the vehicle financing segment, offering loans for both new and used vehicles across categories such as cars, commercial vehicles, and tractors.

Housing Loans:Company through its subsidy Shriram housing finance provides loans in affordable housing segment.

Small Business Finance:Shriram Finance provides financial assistance to small businesses and entrepreneurs through customized loan products designed to meet their specific needs. These loans help MSMEs in expanding their operations and improving their productivity.

Retail Loans:The Company offers retail loans to individuals, such as personal loans and loans against gold. These products provide financial support for personal and emergency expenses, as well as leveraging the value of gold assets.

Business Performance

Combined Entity

 

FY23

FY22

FY21

Advances

1,78,685

1,58,247

1,44,670

Net Interest Income (NII)

17,546

13,736

12,124

Net Interest Margin (NIM)

8.6%

7.4%

7.3%

Credit Cost

2.05%

2.56%

2.42%

PAT

6,020

3,545

3,248

Borrowings

1,64,202

1,52,236

1,38,575

Risks

Higher NPA and stressed asset quality.

Inability to achieve business synergy and execution of combined entity.

Not able to improve ROA and cost to income. 

Shriram Transport Finance Company Ltd – Q2FY23 Results - 18 Nov 2022

Market Cap 33,950 Cr
CMP 1,255
P/B 1.21

Results

(INR Cr)

YoY Growth

Comments

Advances

135,249

11.18%

Led by 13.26% growth in used Commercial Vehicle (CV) ~ 93.17% of book

Net Interest Income

2,694

22.85%

Net Interest Margin(NIM) improved by 0.54% to 6.98%

 

Check 10 year X-ray here

 

Key Highlight –

  • Advances decreased in New CV, business and working capital loan segments by 9.39%, 22.21% & 8.49% on yearly basis.
  • Asset quality improved GNPA & NNPA declined by 0.32% and 0.7% to 6.93% and 3.48% on yearly basis.
  • PAT by inclined 38.33% to 1066.87 Cr on yearly basis.
  • Company received approval of regulators for merger between Shriram Capital and Shriram City Union Finance with Shriram Transport Finance.

 

Management Outlook -

  • Management expects growth of 15% in AUM for combined entity.
  • Management expects cost of borrowingto move up by 0.5-0.7%, while NIM of 7% with +/-0.20% range.
  • Management guided on credit cost being around 2%.

Shriram Transport: Event Update - 15 Dec 2021

Event update: The Shriram Group entities Shriram Transport Finance (STF) and Shriram City Union Finance (SCU) will be merged to become a largest retail lending company, Shriram Finance Ltd.

STF, the largest group company in the group (AUM > 1,20,000 Cr) and overall company will be called Shriram Finance (AUM > 1,50,000 Cr)

Current CEO of STF Mr. Umesh Revankar will be Vice Chairman of Shriram Finance. SCU MD & CEO YS Chakravarti will be MD & CEO of Shriram Finance.

STF is a commercial vehicle lender with > 75% portfolio in commercial vehicles while SCU is a SME lender, largest 2w financier and lends against gold.

Outlook:STF and SCU will be merged and together finance rural and unbanked population. Although both the companies have little overlap in terms of business model (STF is a lender to Commercial vehicles while SCU is retail small ticket loans), together the loan book will become more diversified and stable. Both the firms earn similar ROE, albeit STF has higher earning power than SCU.

The management expects cost of funds to come down post merger and additional cross selling opportunities.

 

Shriram Transport Finance: Reduce Exposure - 21 Dec 2020

We recommend to reduce exposure to banking and financials. There are valid concerns on growth and rise in NPA. At the time of purchase all financials were reporting good loan growth and growth in earnings so we didn't hesitate to add. After correction, they were trading too cheap and factored in most of the negatives. We didn't recommend to Sell.

But now after recent rise in prices, risk-reward is not favorable. We believe that large-cap private sector banks are well placed for long term growth, so these can be held for long term.

Small-sized NBFC & banks may face slowdown in growth during the period of high provisioning. We are recommending Sell on such stocks. We will be selling them at a loss of 10-35%. We recommend to free up cash and we shall recover these losses from other stocks over next few months.

Shriram Transport Finance: Quarterly Result Update - 02 Nov 2020

Results: Shriram Transport Finance (STFC) reported 2% growth in net interest income year on year. Pre-provision profits were flat. Loan growth was 5% while disbursement declined 51% over previous year, primarily due to conservative stance and lower demand.

Key highlights:

  • Old CV growth was 8% versus 16% decline in new CV loan book.
  • Collection efficiency is close to 95%, same as pre-covid levels.
  • Stressed book at less than 3% comprising of can aggregators, tours and transport. This might be restructured by quarter end.
  • Gross NPA have reduced to 6.5% versus 8.8 in previous year, however, the NPA can increase as restructured loan book may slip into NPA.
  • Capital adequacy ratio, a primary indicator for  NBFC’s health is at 23.4% from 20.4% in previous year from rights issue.

Outlook: STFC’s management expects AUM growth of 5-6% in second half of FY21. Collection efficiency gives confidence that loans under restructuring will be lower than anticipated. Adequate capital availability will help the company provide for stressed/delinquent assets as well as pursue growth. Demand is good in Tier-II/III/IV cities as Covid spread is low in these areas.

Shriram Transport Finance: Quarterly Result Update - 17 Aug 2020

Shriram Transport Finance Co Ltd | Market Cap: 17,369 Cr

CMP 686 | P/B ratio 1x FY22

Recommendation | BUY

Click here for 10 year X-ray

ResultsShriram Transport Finance’s (STFC) Net Interest Income* declined by 6.51% and Total Income increased 2.82% year on year. Loan book grew by 5% year on year.

Key Highlights:-

  • STFC’s year on year decline in the loan book came from New Vehicle Loans (-15.7%), Business Loans (-13.4%). The Used Vehicles Loans and Working Capital Loans however grew by 7.7% and 26.5% respectively.
  • In spite of the moratorium, the company has been able to collect from 52%, 71% and 73% borrowers in the month of May, June and July 2020 respectively.
  • Year on year comparison shows strong asset quality as Net Stage 3 Non Performing Exposures** declined by 9.8%.
  • Total number of branches stood at 1,758 out of which 844 were in rural areas while 914 were in urban areas.
  • Additional provision created during the quarter for Covid-19 was Rs 956 Cr.

Outlook: STFC has deferred branch expansion plans and minimised the discretionary expenses. As per the management, business has picked up in the rural market due to harvest season and subsequent activities of Kharif sowing. The company has controlled its operating expenses as senior management agreed to a salary cut of 20% during the quarter and most of the rental cost was renegotiated causing rent expense to decline. The company completed its rights issue of Rs. 1500 Cr in July 2020.

Moneyworks4me Opinion: We maintain BUY on Shriram Transport. Used CV is a long term growth opportunity. Competition is low and few companies like STFC can manage to maintain scale and profitability. Used CV requires long term relationship with truck owner and ability to recover from borrowers in remote locations. STFC has around 16,000 field agents to perform this feat. 

The agriculture sector is expected to give good yields. This could help restrict huge spike in NPA. Besides, STFC has asset backed lending which helps the company to recover its loan amount even after its categorized as NPA. Current stock price assumes around 8% in loan given default. (Assuming valuation of the company at 1x FY22 Book value). We find this very pessimistic assumption. We are confident that most of the negatives are already in the price. If market acknowledges this anomaly, the stock will bounce back or we will wait for better quarterly results.

* Net Interest Income- Total interest earned by a company on loan minus Total interest that it expended on its borrowings.

**Stage 3 Non Performing Exposures- Payment not made for more than 90 days

^In all rural facing NBFCs, NPA accrue in first two quarters of financial year and decline over other two quarters (as evident from quarter on quarter decline in Stage 3 NPE in current quarter)

MoneyWorks4me’s employees may be invested in the securities mentioned in the above mail/report/article. For a detailed disclosure click here.

 

Key Ratios of Shriram Finance

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Income10,36210,90413,52915,63216,57617,44619,28030,50935,00341,859
Interest Income10,35910,90313,46715,52916,55517,42019,25530,47734,96441,834
Other Income 3262103212625333825
Expenditure 8,5738,9669,75711,85413,13814,16815,73122,29625,31930,910
Interest Expense 5,0885,2196,4167,5668,3159,0919,77712,99614,87618,532
Operating Expenses 1,2461,2581,5241,7221,9151,8461,9544,9385,7166,807
Provisions 2,2392,4901,8182,5662,9083,2324,0004,3624,7275,571
Exceptional Items 001230000001,554
Profit Before Tax 1,7891,9383,8963,7783,4393,2783,5498,2149,68412,503
Taxes 6066721,3491,2149377918412,2022,4933,080
Profit After Tax 1,1841,2662,5462,5642,5022,4872,7086,0117,1909,423
Adjusted EPS (₹)10.210.921.922.121.619.820.132.139.250.8
Dividend Payout Ratio (%)19%18%10%11%5%18%20%22%23%19%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Equity Capital10,17511,33213,69015,96318,14221,71726,09443,51348,94756,470
Share Capital 227227227227227253271374376376
Reserves 9,94911,10513,46315,73617,91521,46425,82443,13848,57156,094
Minority Interest00000002877300
Long Term Borrowings36,32840,99679,39186,01895,3981,10,3621,19,0311,69,6851,28,9551,66,332
Current Liabilities 26,50327,73611,0626,2754,6522,3642,5448,34066,56567,226
Trade Payables1,537172220133144153166313246299
Short term borrowings3,3304,9545,1994,9482,05671748447864,30065,074
Other Liabilities-4,867-5,126-5,419-5,082-2,200-869-650-791-64,546-65,373
Total Liabilities 73,00680,0651,04,1441,08,2561,18,1921,34,4431,47,6692,21,8252,45,1972,90,027

Assets

Non Current Asset 46,75451,34895,9491,04,1611,08,9491,17,5771,30,1051,98,5332,32,1522,59,696
Loan Asset 42,85047,13190,74696,7511,02,2321,08,3031,16,6651,78,6852,18,6962,45,393
Other Non Current Asset 3,9044,2185,2037,4106,7179,27413,44019,84813,45614,303
Current Asset 26,24228,7138,1964,0959,24316,86617,56423,29213,04530,331
Current Investment117520000001,4395,202
Other Current Asset26,12628,6618,1964,0959,24316,86617,56423,29211,60525,129
Total Assets 73,00680,0651,04,1441,08,2561,18,1921,34,4431,47,6692,21,8252,45,1972,90,027

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity -5,507-2,677-13,142-5,535-2,464-4,239-8,859-17,625-31,118-43,652
Cash Flow From Investing Activity -36-191-76-55-25-34-193-2583,661
Cash Flow From Financing Activity 2,8223,01713,0145,5504,57912,2268,50511,82027,62644,521
Net Cash Flow -2,721338-37-622,0607,962-388-5,999-3,7504,530
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Operational & Financial Ratios

EPS (₹)52561121141119910116119651
DPS (₹)1010111251820354510
BVPS (₹)44849960370480085896511571301300

Performance Ratios

ROA (%)1.71.72.82.42.22.01.93.33.13.5
ROE (%)12.211.820.417.314.712.511.317.315.617.9
ROCE (%)11.911.512.911.410.910.39.912.210.911.6

Valuation Parameters

Price/Book(x)2.12.22.41.80.81.71.21.11.82.2

Shriram Finance Ltd Stock News

Shriram Finance Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Shriram Finance on 18-Jul-2025 16:59 is ₹645.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-Jul-2025 16:59 the market cap of Shriram Finance stood at ₹1,21,365.6.
The latest P/E ratio of Shriram Finance as of 18-Jul-2025 16:59 is 12.43.
The latest P/B ratio of Shriram Finance as of 18-Jul-2025 16:59 is 2.16.
The 52-week high of Shriram Finance is ₹730.4 and the 52-week low is ₹493.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Shriram Finance is ₹41,834 ( Cr.) .

About Shriram Finance Ltd

Shriram Transport Finance Company (STFC) is the flagship company of the Shriram group which has significant presence in in financial services viz., commercial vehicle financing business, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance products and units of mutual funds. The Company was incorporated in the year 1979 and is registered as a Deposit taking NBFC with Reserve Bank of India under section 451A of the Reserve Bank of India Act, 1934. STFC decided to finance the much neglected Small Truck Owner. Shriram understood the power of 'Aspiration' much before marketing based on 'Aspiration' became fashionable. Shriram started lending to the Small Truck Owner to buy new trucks. But it found a mismatch between the Aspiration and Ability.

Business area of the company

The company is one of the largest asset financing NBFC in the country and holistic finance provider for the commercial vehicle industry and seeks to partner small truck owners for every possible need related to their assets.

Products

  • Commercial vehicle loans
  • Business loans
  • Deposits
  • Working Capital loans
  • Life insurance
  • Emergency credit line guarantee scheme (ECLGS)

Awards

  • 2012: Shriram Transport Finance Company wins CNBC TV18 Best Bank and Financial Institution Awards
  • 2012: Shriram Transport Finance Company Ltd wins the ICAI Awards for Financial Reporting'
  • 2017- Shriram Transport Finance Company selected Asia's most Promising Brand 2017

Milestones

  • 1979: STFC was established.
  • 1984: Initial public offering.
  • 1990: Investment from Telco & Ashok Leyland.
  • 1999: Tied up with Citi Group for CV financing under portfolio management services.
  • 1999: the 1st securitization transaction by STFC.
  • 2002-04: Preferential allotment of Citi Finance (India).
  • 2002-04: Preferential allotment to Axis Bank and Reliance Capital.
  • 2005-06: Investment from ChrysCapital.
  • 2005-06: Investment from TPG.
  • 2005-06: Merger of Shriram Investment Ltd. and Shriram Overseas Finance Ltd. with STFC; PAT crosses Rs 1,000 million.
  • 2009: Successfully placed Rs 10 billion of NCD with domestic investors.
  • 2009: Purchased hypothecation loan outstanding of commercial vehicle and construction of GE Capital Services India and GE Capital Finance Services (GE) aggregating to around Rs 11 billion.
  • 2010: Securitised Rs 87.57 billion during FY 2010.
  • 2010: Successfully raise Rs 5.84 billion through QIP with domestic & international investors. Initiated financing of construction equipment.
  • 2011: Introduced Shriram Automalls - a dedicated platform for trading of pre-owned trucks at a fair value.
  • 2013: AUM crosses Rs 500 billion.
  • 2015: India Ratings & Research Long-Term rating upgraded to ‘AA+’.
  • 2015: CRISIL upgraded long-term debt rating to ‘AA+/FAAA/Stable’.
  • 2017: Successfully raised Rs 13.5 billion through issuance of ‘Masala Bonds’ Senior Secured Rupee Denominated Bonds listed on Singapore Stock Exchange.
  • 2018: AUM crosses Rs 1000 billion
  • 2019: Raised $500 million on through offshore bonds.
  • 2019: Within months, global investors reposed faith on the company showing the company’s robust credit fundamentals.
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