SHRIRAMFIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | SHRIRAMFIN | Market Cap | 2,20,529 Cr. | Current Price | 937 ₹ | High / Low | 1,108 ₹ |
| Stock P/E | 22.1 | Book Value | 349 ₹ | Dividend Yield | 1.06 % | ROCE | 11.5 % |
| ROE | 16.4 % | Face Value | 2.00 ₹ | DMA 50 | 988 ₹ | DMA 200 | 872 ₹ |
| Chg in FII Hold | 8.93 % | Chg in DII Hold | -2.67 % | PAT Qtr | 3,014 Cr. | PAT Prev Qtr | 2,522 Cr. |
| RSI | 40.7 | MACD | -4.43 | Volume | 62,09,789 | Avg Vol 1Wk | 87,50,062 |
| Low price | 566 ₹ | High price | 1,108 ₹ | PEG Ratio | 1.18 | Debt to equity | 3.82 |
| 52w Index | 68.5 % | Qtr Profit Var | 40.9 % | EPS | 53.1 ₹ | Industry PE | 18.2 |
📊 SHRIRAMFIN demonstrates solid fundamentals with strong ROE (16.4%) and decent ROCE (11.5%). EPS of ₹53.1 provides earnings visibility, and dividend yield of 1.06% adds shareholder return. Valuation is moderately high with P/E (22.1) compared to industry average (18.2), though PEG ratio (1.18) suggests growth efficiency is reasonable. Debt-to-equity ratio (3.82) is high, adding leverage risk. PAT growth (+40.9% QoQ) highlights strong operational performance. Current price ₹937 is below DMA 50 (₹988) but above DMA 200 (₹872), suggesting consolidation. Entry zone is attractive near ₹920–950 for accumulation.
💡 Long-term investors may hold with a 3–5 year horizon, focusing on profitability trends and debt management. Exit strategy: partial profit booking near ₹1,080–1,100 resistance or full exit if leverage worsens or profitability declines.
Positive
- 📈 Strong ROE (16.4%) and ROCE (11.5%).
- 💰 EPS of ₹53.1 supports earnings visibility.
- 📊 Dividend yield of 1.06% provides shareholder return.
- 📈 PAT growth (+40.9% QoQ) highlights operational strength.
- 📊 FII holdings increased significantly (+8.93%).
Limitation
- ⚠️ High debt-to-equity ratio (3.82) adds financial risk.
- 📉 Valuations slightly above industry average (P/E 22.1 vs 18.2).
- 📊 Weak technical momentum (RSI 40.7, MACD negative).
- 📉 DII holdings decreased (-2.67%).
Company Negative News
- 📉 Decline in domestic institutional investor confidence (-2.67%).
- 📊 High leverage remains a structural risk.
Company Positive News
- 📈 Strong quarterly PAT growth (₹3,014 Cr. vs ₹2,522 Cr.).
- 📊 FII holdings increased (+8.93%), showing foreign investor confidence.
- 📊 Technical indicators show potential recovery despite weak RSI.
Industry
- 🏦 Industry PE at 18.2 highlights SHRIRAMFIN’s moderate premium valuation.
- 📈 NBFC sector benefits from credit demand but faces regulatory and interest rate risks.
Conclusion
⚖️ SHRIRAMFIN earns a rating of 3.8. Strong fundamentals and earnings growth make it a viable long-term candidate, but high leverage and slightly stretched valuations require caution. Best accumulated near ₹920–950. Hold if already invested, with partial exits near resistance zones, while monitoring debt and profitability trends.
This structured HTML report captures SHRIRAMFIN’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this into a peer benchmarking overlay against Bajaj Finance, Muthoot Finance, and L&T Finance to highlight relative positioning in the NBFC sector?