Stock Performance and Market Context
On 18 Dec 2025, Shriram Finance recorded its highest price in the past year at Rs.876.25, marking a notable peak compared to its 52-week low of Rs.493.60. The stock has demonstrated resilience with gains over the last two consecutive sessions, delivering a cumulative return of 3.07% during this period. Today’s performance outpaced the NBFC sector by 0.82%, signalling relative strength within its industry group.
Technical indicators further highlight the stock’s upward trajectory, as Shriram Finance is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This alignment of short- and long-term averages typically suggests sustained positive momentum and investor confidence in the stock’s price action.
Meanwhile, the broader market environment has been supportive. The Sensex, after a flat opening, moved into positive territory, trading at 84,713.20 points, which is approximately 1.71% below its own 52-week high of 86,159.02. The index’s position above its 50-day and 200-day moving averages, with the 50 DMA above the 200 DMA, indicates a bullish trend. Mega-cap stocks have been leading the market gains, contributing to the overall positive sentiment.
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Financial Metrics Underpinning the Rally
Shriram Finance’s recent price movement is supported by its solid financial fundamentals. Over the past year, the company’s stock has delivered a total return of 48.42%, significantly outstripping the Sensex’s 5.65% return during the same period. This performance reflects the company’s ability to generate consistent growth and profitability in a competitive NBFC sector.
The company’s net sales have expanded at an annual rate of 22.00%, while operating profit has grown at 22.80% annually, indicating healthy top-line and operational momentum. Quarterly figures reinforce this trend, with net sales reaching a peak of Rs.11,912.44 crore and PBDIT (Profit Before Depreciation, Interest and Taxes) hitting Rs.8,803.40 crore. Additionally, profit before tax excluding other income stood at Rs.3,104.12 crore, marking the highest quarterly level recorded.
Return on Equity (ROE) remains robust at 14.3%, reflecting efficient utilisation of shareholder capital. The stock’s price-to-book value ratio of 2.7 suggests a valuation that is premium relative to peers, consistent with its strong fundamentals and market position. The company’s PEG ratio of 1.8 indicates that earnings growth is being factored into the current price, aligning with the observed price appreciation.
Institutional investors hold a significant stake of 68.27% in Shriram Finance, highlighting confidence from entities with extensive analytical resources. This level of institutional ownership often correlates with stability and sustained interest in the stock’s fundamentals.
Consistent Growth and Market Outperformance
Over the last three years, Shriram Finance has consistently outperformed the BSE500 index annually, underscoring its ability to deliver steady returns over multiple market cycles. The company has reported positive results for eight consecutive quarters, reinforcing its track record of operational strength and financial discipline.
The stock’s current rally to a 52-week high is a culmination of these factors, reflecting both the company’s intrinsic growth and the broader market’s favourable conditions. The NBFC sector’s ongoing recovery and the company’s strategic positioning have contributed to this upward momentum.
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Sector and Market Position
Shriram Finance operates within the NBFC sector, which has been witnessing gradual recovery and renewed investor focus. The company’s market capitalisation grade indicates it is a significant player within its industry. Its ability to maintain performance above key moving averages and outperform sector benchmarks highlights its competitive edge.
Today’s market activity, with the Sensex trading near its own 52-week high and supported by mega-cap leadership, provides a conducive backdrop for Shriram Finance’s price appreciation. The stock’s outperformance relative to the sector and broader market indices reflects its strong positioning and operational consistency.
Summary
Shriram Finance’s attainment of a new 52-week high at Rs.876.25 marks a noteworthy milestone in its market journey. Supported by solid financial results, consistent quarterly performance, and favourable technical indicators, the stock has demonstrated sustained momentum. Its outperformance relative to the Sensex and NBFC sector underscores the company’s robust fundamentals and market standing. As the broader market maintains a positive trend, Shriram Finance’s rally exemplifies the strength of well-established NBFCs in the current environment.
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