⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SHRIRAMFIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | SHRIRAMFIN | Market Cap | 1,92,126 Cr. | Current Price | 1,021 ₹ | High / Low | 1,108 ₹ |
| Stock P/E | 21.1 | Book Value | 321 ₹ | Dividend Yield | 0.97 % | ROCE | 11.2 % |
| ROE | 16.4 % | Face Value | 2.00 ₹ | DMA 50 | 1,008 ₹ | DMA 200 | 841 ₹ |
| Chg in FII Hold | -2.40 % | Chg in DII Hold | 2.64 % | PAT Qtr | 2,522 Cr. | PAT Prev Qtr | 2,307 Cr. |
| RSI | 48.7 | MACD | -5.43 | Volume | 40,50,602 | Avg Vol 1Wk | 68,83,386 |
| Low price | 566 ₹ | High price | 1,108 ₹ | PEG Ratio | 0.45 | Debt to equity | 3.88 |
| 52w Index | 84.0 % | Qtr Profit Var | 5.33 % | EPS | 48.5 ₹ | Industry PE | 17.2 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT rose from ₹2,307 Cr. to ₹2,522 Cr. (5.33% growth).
- Margins: ROE at 16.4% and ROCE at 11.2% → moderate efficiency.
- Debt: Debt-to-equity ratio of 3.88 → high leverage, typical for NBFCs.
- Cash Flow: Supported by strong lending operations, though debt servicing is heavy.
- Return Metrics: EPS at ₹48.5, showing consistent earnings power.
💹 Valuation Indicators
- P/E Ratio: 21.1 vs Industry PE of 17.2 → slightly overvalued.
- P/B Ratio: Price ₹1,021 / Book Value ₹321 ≈ 3.18.
- PEG Ratio: 0.45 → reasonable valuation relative to growth.
- Intrinsic Value: Fairly valued, with limited margin of safety due to high leverage.
🏢 Business Model & Competitive Advantage
- Operates as a leading NBFC in retail lending, vehicle finance, and SME loans.
- Competitive advantage lies in strong distribution network and brand trust.
- High leverage is a structural risk but common in lending businesses.
- Challenges include interest rate cycles and credit risk management.
📈 Entry Zone Recommendation
- Technicals: RSI at 48.7 (neutral), MACD negative, price near 50DMA (1,008) and above 200DMA (841).
- Entry Zone: Attractive accumulation near ₹980–1,000 for long-term investors.
- Holding Guidance: Suitable for long-term holding given strong lending franchise, but leverage risk must be monitored.
✅ Positive
- Quarterly PAT growth of 5.33% shows steady momentum.
- Strong ROE at 16.4% indicates efficient capital use.
- DII holdings increased (+2.64%).
⚠️ Limitation
- High debt-to-equity ratio (3.88).
- ROCE modest at 11.2%.
- P/E slightly higher than industry average (21.1 vs 17.2).
📉 Company Negative News
- FII holdings decreased (-2.40%).
- MACD negative, showing weak technical momentum.
- Stock corrected from ₹1,108 to ₹1,021.
📈 Company Positive News
- Quarterly PAT improved to ₹2,522 Cr.
- DII confidence increased (+2.64%).
- Strong lending franchise supports long-term growth.
🌐 Industry
- NBFC sector plays a critical role in retail and SME financing.
- Industry PE at 17.2 indicates sector trades at lower valuations compared to SHRIRAMFIN.
- Rising credit demand in India supports long-term opportunities.
🔎 Conclusion
- SHRIRAMFIN shows strong profitability and lending franchise but carries high leverage risk.
- Valuations are slightly stretched compared to industry peers.
- Best considered for long-term investors with entry near ₹980–1,000; holding depends on credit quality and debt management.