Stock Performance and Market Context
On 10 Feb 2026, Shriram Finance Ltd touched its highest price in the past year at Rs.1069.15. Despite a slight intraday pullback with a low of Rs.1040.6 (-2.03%) and a day change of -1.77%, the stock remains firmly above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning reflects sustained buying interest over multiple time horizons.
The broader market backdrop has been supportive, with the Sensex opening 144.25 points higher and trading at 84,409.52, up 0.41%. The Sensex itself is nearing its 52-week high of 86,159.02, currently just 2.07% away, and has recorded a 3.52% gain over the past three weeks. Mega-cap stocks are leading this advance, providing a positive environment for financial sector stocks like Shriram Finance.
Strong Long-Term Growth and Financial Metrics
Shriram Finance’s 52-week high is underpinned by robust fundamentals. The company has demonstrated healthy long-term growth, with net sales expanding at an annual rate of 22.46% and operating profit growing at 23.66%. The latest quarterly results highlight this strength, with net sales reaching a record Rs.12,170.76 crore, profit before tax excluding other income at Rs.3,337.78 crore, and profit after tax at Rs.2,529.67 crore – all the highest recorded to date.
Return on Equity (ROE) remains strong at 14.00%, reflecting efficient capital utilisation. Institutional investors hold a significant 68.52% stake in the company, signalling confidence from entities with extensive analytical resources. Over the last year, Shriram Finance has delivered an impressive 86.18% return, substantially outperforming the Sensex’s 9.18% gain over the same period.
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Valuation and Risk Considerations
While the stock’s performance has been strong, valuation metrics indicate a premium positioning. The Price to Book Value stands at 3.3, which is higher than the average historical valuations of its peers. The company’s Price/Earnings to Growth (PEG) ratio is 1.7, reflecting a valuation that factors in growth expectations. Profit growth over the past year has been 13%, which, while positive, is more moderate compared to the stock’s price appreciation of 86.18%.
These valuation levels suggest that the market is pricing in sustained growth and strong fundamentals, but also imply that the stock is trading at a premium relative to some competitors in the NBFC sector.
Consistent Quarterly Performance and Market Standing
Shriram Finance has reported positive results for nine consecutive quarters, reinforcing its position as a consistent performer in the NBFC space. The company’s market cap grade is rated at 1, indicating a large-cap status with significant market presence. The recent upgrade in its Mojo Grade from Hold to Buy on 15 Dec 2025, with a current Mojo Score of 72.0, reflects improved confidence in its financial health and growth trajectory.
Its sustained outperformance against the BSE500 index over the last three years further highlights its resilience and ability to generate consistent returns for shareholders.
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Sector and Industry Positioning
Operating within the Non Banking Financial Company (NBFC) sector, Shriram Finance benefits from a growing demand for credit and financial services outside traditional banking channels. The company’s ability to maintain strong sales growth and profitability in this competitive sector is a key driver behind its recent price appreciation.
Its market cap and institutional backing place it among the leading NBFCs, with a track record of delivering steady financial results and maintaining a robust balance sheet.
Summary of Key Metrics
To summarise, Shriram Finance Ltd’s new 52-week high of Rs.1069.15 reflects a combination of strong financial performance, positive market sentiment, and technical strength. Key highlights include:
- One-year stock return of 86.18% versus Sensex’s 9.18%
- Net sales growth at 22.46% annually and operating profit growth at 23.66%
- Highest quarterly net sales of Rs.12,170.76 crore and PAT of Rs.2,529.67 crore
- Institutional holdings at 68.52%
- Trading above all major moving averages
- Mojo Grade upgraded to Buy with a score of 72.0
These factors collectively underpin the stock’s upward momentum and its milestone achievement in the market.
Conclusion
Shriram Finance Ltd’s attainment of a new 52-week high is a testament to its sustained growth and solid financial foundation within the NBFC sector. Despite a minor intraday correction, the stock’s position above key moving averages and its strong quarterly results highlight its resilience and market strength. The premium valuation metrics reflect the market’s recognition of the company’s consistent performance and growth prospects.
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