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SHRIRAMFIN - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 3.4

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

📈 Chart & Trend Analysis

  • Moving Averages: Current price (₹942) is below 50 DMA (₹970) but above 200 DMA (₹883), showing medium-term weakness but long-term strength.
  • RSI: At 45.7, the stock is neutral-to-weak, not oversold yet.
  • MACD: Negative (-16.6), suggesting bearish divergence despite overall uptrend.
  • Bollinger Bands: Price is near the mid-band, indicating consolidation.
  • Volume Trends: Current volume (56,66,664) is slightly above 1-week average (50,68,799), showing healthy participation.

📊 Momentum & Signals

  • Short-term momentum: Neutral to weak, with MACD bearish but price supported by long-term averages.
  • Support Zone: ₹930 – ₹940 (near-term support).
  • Resistance Zone: ₹970 – ₹980 (50 DMA and psychological barrier).
  • Entry Zone: ₹935 – ₹945 (near support, cautious entry).
  • Exit Zone: ₹970 – ₹980 (resistance levels).

📉 Trend Status

The stock is currently in a consolidation phase with neutral RSI and weak MACD. Sustained move above ₹980 could confirm reversal into a stronger uptrend, while failure to hold ₹930 may trigger downside.

✅ Positive

  • Strong ROE (16.4%) and ROCE (11.5%) indicate efficient capital use.
  • Dividend yield of 1.15% provides income stability.
  • Quarterly PAT growth (₹3,014 Cr vs ₹2,522 Cr) supports earnings momentum.
  • EPS of ₹53.1 reflects solid profitability.

⚠️ Limitation

  • High debt-to-equity ratio (3.82), indicating significant leverage risk.
  • P/E ratio (22.2) is above industry average (18.7), suggesting relatively expensive valuation.
  • RSI below 50 and negative MACD show weak short-term momentum.

📰 Company Negative News

  • DII holding decreased (-2.67%), showing reduced domestic institutional confidence.

🌟 Company Positive News

  • FII holding increased (+8.93%), reflecting strong foreign investor support.
  • Quarterly profit variation (+40.9%) highlights strong earnings growth.

🏦 Industry

  • Industry PE at 18.7, lower than SHRIRAMFIN’s 22.2, suggesting peers are cheaper.
  • Financial services sector benefits from rising credit demand and economic expansion but faces leverage risks.

📌 Conclusion

SHRIRAMFIN is in a consolidation phase with strong fundamentals but weak short-term momentum. Entry near ₹935 – ₹945 with exit around ₹970 – ₹980 is optimal for short-term traders. Long-term investors should weigh strong earnings growth and FII support against high leverage and relatively expensive valuation.

Technical Analysis
Fundamental Analysis

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