Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: Credit Services

Shriram Finance Limited, a non-banking finance company, primarily engages in the provision of financing services in India. It offers fixed and recurring deposits; commercial vehicle loans for commercial goods vehicles, passenger vehicles, tractors and farm equipment, and construction equipment; and multi-utility vehicle, two-wheeler, gold, and personal loans. The company also provides business loans, such as small and medium enterprise loans; working capital loans, including tyre, tax, fuel, and toll financing, and repair/top-up loans and challan discounting; insurance products life, motor, personal accident, and home insurance products; and payment services. It serves first time buyers, small road transport operators, and individuals; and micro, small, and medium enterprises (MSMEs) customers consisting of self-employed professionals, wholesale and retail dealers, merchants, builders, small and medium scale manufacturing concerns, and service providers. The company was formerly known as Shriram Transport Finance Company Limited and changed its name to Shriram Finance Limited in November 2022. Shriram Finance Limited was incorporated in 1979 and is based in Mumbai, India.

Revenue projections:

Revenue projections for SHRIRAMFIN
Revenue projections for SHRIRAMFIN

Investors may be wary of SHRIRAMFIN as its revenues are expected to fall below the prior year's levels. A revenue decrease often leads to concerns about profitability, as it is likely to affect the company's bottom line, prompting investors to take a more cautious approach.

Financial Ratios:

currentRatio 0.000000
forwardPE 16.810423
debtToEquity 279.083000
earningsGrowth -0.221000
revenueGrowth 0.214000
grossMargins 0.958810
operatingMargins 0.612740
trailingEps 48.570000
forwardEps 59.698080

SHRIRAMFIN's Forward PE being in a good range indicates the stock is priced well relative to its earnings. It is not overvalued, leaving space for future growth, making it an appealing option for investors interested in long-term value appreciation.
SHRIRAMFIN's high debt-to-equity ratio reveals that the company is heavily reliant on debt for financing. This high level of leverage increases the risk of financial strain if profits decline or interest rates rise.
SHRIRAMFIN's low earnings and revenue growth highlight a potential decline in profitability. This suggests that the company's financial health may be weakening, and profits could shrink as a result.
Shriram Finance Limited's positive gross and operating margins reflect its ability to generate profits from operations. These margins demonstrate efficient cost control and profitability, indicating strong financial health for the company.
SHRIRAMFIN's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that SHRIRAMFIN's financial performance will improve in the current financial year.

Price projections:

Price projections for SHRIRAMFIN
Price projections for SHRIRAMFIN

Over time, price projections for SHRIRAMFIN have gradually risen, signaling growing optimism about the company's future. This upward revision reflects increasing confidence in SHRIRAMFIN's ability to achieve strong financial results.

Recommendation changes over time:

Recommendations trend for SHRIRAMFIN
Recommendations trend for SHRIRAMFIN


Recent analysis shows a strong buy bias for Shriram Finance Limited, encouraging investors to view it as a solid investment option. The positive sentiment surrounding Shriram Finance Limited suggests it could be an attractive place to allocate funds, motivating potential investors to consider the stock as a valuable part of their portfolio.