Shriram Finance share price snaps 2-day winning run— time to accumulate?
Snapping its two-day winning run, Shriram Finance share price closed about 1 per cent lower on Wednesday, June 4, while equity benchmarks ended with mild gains. Shriram Finance shares, after opening at ₹ 649.95 and touching an intraday high and low of ₹ 661.85 and ₹ 640, respectively, finally settled 0.96 per cent lower at ₹ 642.05 on the NSE. Equity benchmark Nifty 50 closed 0.32 per cent higher at 24,620.20.
Shriram Finance's share has gained 42 per cent over the last year and 10 per cent year-to-date. It hit a 52-week low of ₹ 438.60 on June 4 and subsequently a 52-week high of ₹ 730.45 on September 27 last year.
On January 10 this year, the stock was split 1:5. On October 25 last year, the company announced that its board had approved the sub-division of one fully paid equity share with a face value of ₹ 10 each into five fully paid equity shares with a face value of ₹ 2 each.
The company's Q4 earnings were largely on expected lines. Its profit after tax (PAT) for Q4FY25 grew by 9.95 per cent to ₹ 2,139.39 crore against ₹ 1,945.87 crore in the corresponding quarter of the previous financial year.
The net interest income (NII) for the quarter increased by 13.40 per cent to ₹ 6,051.19 crore against ₹ 5,336.06 crore in the same period of the previous financial year.
The basic earnings per share increased by 9.85 per cent to ₹ 11.38 against ₹ 10.36 in Q4FY24.
Total assets under management (AUM) as on 31st March, 2025 increased by 17.05 per cent to ₹ 2,63,190.27 crore compared to ₹ 2,24,861.98 crore as on 31st March, 2024 and ₹ 2,54,469.69 crores as on 31st December, 2024.
The board of directors recommended a final dividend of ₹ 3 per equity share of nominal
face value of ₹ 2 each for the financial year 2024-25. With this, the total dividend for the financial year 2024-25 was ₹ 9.90 per share of ₹ 2 each after adjusting for the split.
Attractive valuation and healthy growth prospects make this stock a long-term bet.
According to brokerage firm Motilal Oswal Financial Services, the FY26 outlook looks better for the company amid expectations of an economic revival, supported by forecasts of a favorable monsoon and higher government capex.
"Favourable monsoons can lead to a higher agricultural output and stronger rural cash flows, which in turn will drive credit demand across the vehicle finance and MSME segments. These factors would improve disbursement momentum and portfolio quality in FY26," Motilal said.
On the valuation front, Motilal highlighted that the stock's valuations have already re-rated from 1.4 times to 1.9 times one-year forward P/BV over the last 12 months. The brokerage firm believes the stock can see a further re-rating if the company sustains its AUM growth, improves margins and exhibits stability in its asset quality.
"Shriram Finance remains our top pick in the NBFC space for calendar year 2026, driven by its diversified portfolio, strong execution and healthy return ratios. We reiterate our buy rating on the stock with a target price of ₹ 800, based on two times FY27E P/BV," said Motilal Oswal.
The brokerage firm expects Shriram Finance to deliver a PAT CAGR of nearly 19 per cent over FY25-27E and RoA (return on assets) and RoE (return on equity) of 3.3 per cent and 17 peer cent, respectively, in FY27E.
Technical experts also appear largely positive but they suggest waiting for a breakout above ₹ 665-680 range for initiating a buy in the stock.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that Shriram Finance is currently facing resistance near ₹ 665, which coincides with the R3 Camarilla monthly pivot. Shriram Finance shares techncial chart
"While the overall chart structure appears constructive, we recommend waiting for a decisive daily close above ₹ 665 before initiating fresh long positions. Upon confirmation, the stock may target ₹ 700, with a stop loss placed at ₹ 640 on a daily closing basis," said Patel.
According to Kunal Kamble, Senior Technical Research Analyst at Bonanza, Shriram Finance is currently trading near a falling trendline resistance on the daily timeframe.
"The stock has witnessed consistent selling pressure between the ₹ 710–715 zone, indicating a lack of buyer conviction and limited upside momentum. The 20-day and 50-day EMAs remain flat, reflecting a sideways trend in the stock. Momentum indicators are also muted, with the RSI at 48.01, signalling weak bullish strength," Kamble said.
"From a technical standpoint, a decisive close above ₹ 680 would be needed to confirm a breakout, post which the stock may move towards ₹ 716 and ₹ 735," said Kamble.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
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