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

Revenues for SHRIRAMFIN are forecasted to decline from last year's levels, prompting caution among investors. When revenues fall, it can have a significant negative impact on the company's bottom line, reducing profitability and making the stock less attractive to risk-averse investors.

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

Shriram Finance Limited's current ratio 4.803, suggesting the company has sufficient liquidity to service its short-term debt. With its cash reserves and current assets in good shape, Shriram Finance Limited can comfortably meet its immediate liabilities, reflecting a healthy financial standing.
SHRIRAMFIN's elevated debt-to-equity ratio reflects a high level of debt relative to equity, signaling that the company is heavily leveraged. This reliance on debt could increase financial risk in periods of economic uncertainty.
SHRIRAMFIN's low growth in earnings and revenue points to a likely reduction in profits. This signals a weakening financial performance, indicating the company might face difficulties in staying profitable.
SHRIRAMFIN's positive gross and operating margins reflect strong profitability and operational efficiency. These metrics indicate the company's ability to control costs while maintaining healthy revenue, contributing to its solid financial performance.

Price projections:

Price projections for SHRIRAMFIN
Price projections for SHRIRAMFIN

The steady upward revision of SHRIRAMFIN's price projections indicates growing confidence in the company's performance. Analysts are becoming increasingly optimistic about SHRIRAMFIN's future prospects and potential for growth.

Recommendation changes over time:

Recommendations trend for SHRIRAMFIN
Recommendations trend for SHRIRAMFIN


The recent buy bias for SHRIRAMFIN from analysts signals strong confidence in the stock's potential. This positive sentiment could encourage investors to see SHRIRAMFIN as a smart place to invest their money, especially those looking for stable, long-term returns in a well-established company.