Stock Price Movement and Market Context
On 27 Jan 2026, Shriram Asset Management Co Ltd (Stock ID: 437081) recorded an intraday low of Rs.318.6, representing a 4.98% drop from the previous close. This decline contributed to a two-day consecutive fall, resulting in an 11.09% loss over this short period. The stock underperformed its sector by 0.66% on the day, reflecting broader challenges faced by the company.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning underscores the prevailing bearish sentiment among market participants.
In comparison, the Sensex opened lower by 100.91 points and was trading at 81,262.09, down 0.34%. The index has experienced a three-week consecutive decline, losing 2.77% over this period. Despite this, certain indices such as the NIFTY PSU hit new 52-week highs, indicating a mixed market environment.
Long-Term Performance and Valuation
Over the past year, Shriram Asset Management Co Ltd’s stock has depreciated by 27.46%, a stark contrast to the Sensex’s positive return of 7.87% and the broader BSE500’s 8.01% gain. This underperformance highlights the stock’s relative weakness within the capital markets sector and the wider market.
The company’s 52-week high was Rs.690, illustrating the extent of the decline from its peak. The current market capitalisation grade stands at 4, reflecting a modest valuation relative to its peers. The Mojo Score of 12.0 and a recent downgrade from a Sell to a Strong Sell rating on 18 Aug 2025 further emphasise the cautious stance adopted by analysts.
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Financial Metrics and Profitability Trends
Shriram Asset Management Co Ltd’s financial performance has shown signs of strain. The company reported operating cash flow for the year at a low of Rs. -12.51 crores, indicating cash outflows from core business activities. Quarterly profit after tax (PAT) stood at Rs. -4.40 crores, reflecting a 5.1% decline compared to the average of the previous four quarters.
Operating profit has contracted sharply, with an annualised decline rate of 246.53%, signalling significant pressure on earnings generation. The company’s EBITDA remains negative, which adds to concerns about its ability to sustain profitability in the near term.
Despite its size, domestic mutual funds hold no stake in Shriram Asset Management Co Ltd, which may suggest limited institutional confidence or a cautious approach given the company’s current financial profile.
Risk and Valuation Considerations
The stock is considered risky relative to its historical valuation averages. Over the last year, profits have fallen by 77%, while the stock price has declined by 27.46%. This divergence indicates that the market has priced in some of the earnings deterioration but remains sensitive to further negative developments.
Given the company’s weak long-term fundamental strength and the downgrade to a Strong Sell rating, the stock’s valuation reflects heightened risk perceptions among investors and analysts alike.
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Sector and Market Position
Shriram Asset Management Co Ltd operates within the capital markets industry, a sector that has seen mixed performance recently. While some indices such as the NIFTY PSU have reached new highs, the company’s stock has lagged behind, reflecting challenges specific to its business model and financial health.
The company’s Mojo Grade downgrade from Sell to Strong Sell on 18 Aug 2025 highlights deteriorating fundamentals and a cautious outlook from market analysts. The current Mojo Score of 12.0 is indicative of significant concerns regarding the company’s near-term prospects.
Overall, the stock’s fall to a 52-week low of Rs.318.6 underscores the pressures faced by Shriram Asset Management Co Ltd amid a challenging operating environment and subdued financial performance.
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