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

SHRIRAMFIN is projected to experience a revenue decline compared to last year, a development that often leads to investor caution. The drop could negatively impact the company's bottom line, as lower revenues typically signal reduced profitability, prompting more conservative investment strategies.

Financial Ratios:

currentRatio 4.80300
forwardPE 10.79533
debtToEquity 315.41000
earningsGrowth 0.06800
revenueGrowth -0.02000
grossMargins 0.96744
operatingMargins 0.62100
trailingEps 50.11000
forwardEps 0.00000

The current ratio for SHRIRAMFIN is 4.803, indicating that the company can service its short-term debt using available cash and assets. This suggests SHRIRAMFIN has strong liquidity, with more than enough resources to meet its immediate financial commitments.
SHRIRAMFIN's Forward PE is in a favorable range, suggesting the stock is reasonably priced relative to its earnings. This indicates the stock is not overpriced, providing room for potential growth and making it an attractive option for investors looking for solid value and future upside.
SHRIRAMFIN's high debt-to-equity ratio suggests a heavily leveraged capital structure. The company relies on debt to fund operations, which could heighten financial risks, particularly if economic conditions deteriorate or profitability declines.
Shriram Finance Limited's low earnings and revenue growth suggest that the company's profits may shrink. This trend could indicate underlying financial struggles and pose challenges for Shriram Finance Limited's future profitability.
With positive gross and operating margins, SHRIRAMFIN demonstrates strong profitability. This reflects the company's ability to manage costs and maintain healthy profits, showcasing effective operational efficiency and financial stability.

Price projections:

Price projections for SHRIRAMFIN
Price projections for SHRIRAMFIN

Shriram Finance Limited's price projections have been revised upward over time, suggesting that analysts are becoming more confident in the company's future. This trend points to increased optimism about Shriram Finance Limited's ability to grow.

Recommendation changes over time:

Recommendations trend for SHRIRAMFIN
Recommendations trend for SHRIRAMFIN


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