SHRIRAMFIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | SHRIRAMFIN | Market Cap | 2,21,601 Cr. | Current Price | 942 ₹ | High / Low | 1,108 ₹ |
| Stock P/E | 22.2 | Book Value | 349 ₹ | Dividend Yield | 1.15 % | ROCE | 11.5 % |
| ROE | 16.4 % | Face Value | 2.00 ₹ | DMA 50 | 970 ₹ | DMA 200 | 883 ₹ |
| Chg in FII Hold | 8.93 % | Chg in DII Hold | -2.67 % | PAT Qtr | 3,014 Cr. | PAT Prev Qtr | 2,522 Cr. |
| RSI | 45.7 | MACD | -16.6 | Volume | 56,66,664 | Avg Vol 1Wk | 50,68,799 |
| Low price | 566 ₹ | High price | 1,108 ₹ | PEG Ratio | 1.19 | Debt to equity | 3.82 |
| 52w Index | 69.3 % | Qtr Profit Var | 40.9 % | EPS | 53.1 ₹ | Industry PE | 18.7 |
📊 Financials: SHRIRAMFIN has a market cap of ₹2,21,601 Cr. Quarterly PAT rose from ₹2,522 Cr. to ₹3,014 Cr. (40.9% growth), showing strong profitability momentum. ROE at 16.4% and ROCE at 11.5% reflect healthy efficiency. Debt-to-equity ratio of 3.82 indicates high leverage, typical for NBFCs. EPS at ₹53.1 is strong, supporting earnings visibility. Dividend yield at 1.15% adds income stability.
💹 Valuation: Current P/E of 22.2 is slightly above the industry average of 18.7, suggesting mild overvaluation. P/B ratio (~2.7) is elevated compared to book value ₹349. PEG ratio at 1.19 indicates growth is priced fairly. Intrinsic value appears close to CMP ₹942, leaving moderate upside potential.
🏦 Business Model: SHRIRAMFIN operates as a leading NBFC, focusing on vehicle financing, SME loans, and retail lending. Its competitive advantage lies in strong rural and semi-urban presence, diversified loan book, and brand trust. However, high leverage and exposure to credit cycles pose risks.
📉 Entry Zone: RSI at 45.7 suggests neutral momentum, while MACD at -16.6 indicates bearishness. A potential entry zone could be around ₹900–₹920 for accumulation. Long-term investors may hold, given strong fundamentals and growth trajectory, but should monitor leverage risks.
Positive
- 📈 Strong PAT growth (40.9%).
- 💰 Dividend yield of 1.15% provides steady income.
- 🏦 Strong presence in rural and semi-urban markets.
Limitation
- ⚠️ High debt-to-equity ratio (3.82).
- 📉 P/E (22.2) slightly above industry average (18.7).
- 🔄 Profitability sensitive to credit cycles and interest rates.
Company Negative News
- 📉 Decline in DII holding (-2.67%).
Company Positive News
- 📊 Increase in FII holding (+8.93%).
- 📈 PAT growth from ₹2,522 Cr. to ₹3,014 Cr.
Industry
- 💹 Industry PE at 18.7, slightly lower than SHRIRAMFIN’s 22.2.
- ⚡ NBFC sector expanding with retail credit demand.
- 🏦 Competition from banks and fintech lenders.
Conclusion
⚖️ SHRIRAMFIN is a fundamentally strong NBFC with robust profitability, strong market presence, and attractive dividend yield. However, high leverage and slightly stretched valuations limit near-term upside. Entry may be considered around ₹900–₹920 for long-term investors, with confidence in its growth trajectory but caution regarding credit cycle risks.
For deeper insights, you could explore SHRIRAMFIN peer comparison or a technical chart analysis to complement this fundamental view.