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

Shriram Finance Limited's revenue is forecasted to dip below last year's figures, raising concerns for investors who are typically wary of declining financial performance. Such drops can directly affect the company's bottom line, potentially leading to a decrease in overall profitability, making investors more cautious in their decisions.

Financial Ratios:

currentRatio 4.803000
forwardPE 9.972157
debtToEquity 315.410000
earningsGrowth 0.068000
revenueGrowth -0.020000
grossMargins 0.967440
operatingMargins 0.621000
trailingEps 50.100000
forwardEps 0.000000

SHRIRAMFIN's current ratio, being 4.803, demonstrates that the company has the liquidity necessary to service its short-term debt. With strong cash reserves and current assets, SHRIRAMFIN is well-equipped to meet its immediate financial obligations without any difficulties.
Shriram Finance Limited's high debt-to-equity ratio points to a heavily leveraged company. With more debt than equity, Shriram Finance Limited may face increased financial risk, especially if its earnings or cash flow come under pressure.
SHRIRAMFIN's low growth in earnings and revenue indicates a potential decline in profits. This suggests that the company could be facing financial challenges, making it harder to sustain its current profit margins.
Shriram Finance Limited's positive gross and operating margins indicate the company's ability to operate profitably. These margins reflect strong financial management, with efficient cost control contributing to sustained profitability and a solid financial outlook.

Price projections:

Price projections for SHRIRAMFIN
Price projections for SHRIRAMFIN

SHRIRAMFIN'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 SHRIRAMFIN's ability to grow.

Recommendation changes over time:

Recommendations trend for SHRIRAMFIN
Recommendations trend for SHRIRAMFIN


The recent buy bias from analysts suggests Shriram Finance Limited is seen as a strong investment, encouraging more investors to consider it. With this favorable sentiment, Shriram Finance Limited appears to be a reliable option for parking money, offering stability and long-term growth potential in the stock market.