Shriram Finance Ltd Hits New 52-Week High of Rs 1044.4 on 3 Feb 2026

Strong Rally Drives New Peak

On 3 February 2026, Shriram Finance Ltd’s shares opened with a notable gap up of 4.61%, quickly gaining traction to touch an intraday high of Rs.1044.4, an 8.54% increase from the previous close. This new peak represents a substantial advance from its 52-week low of Rs.516.6, underscoring an impressive one-year return of 83.26%, significantly outperforming the Sensex’s 8.62% gain over the same period.

The stock’s day change of 4.75% outpaced the broader Finance/NBFC sector, which rose by 3.17%, and also outperformed its sector peers by 1.2% on the day. This performance follows a three-day period of decline, signalling a clear trend reversal and renewed investor confidence in the company’s fundamentals.

Technical Positioning and Moving Averages

From a technical standpoint, Shriram Finance Ltd’s share price currently trades above its 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained medium- and long-term strength. However, it remains slightly below its 5-day moving average, suggesting some short-term consolidation after the recent surge. This positioning highlights a healthy momentum build-up, supported by strong buying interest.

Sector and Market Context

While Shriram Finance Ltd has demonstrated robust gains, the broader market exhibited mixed signals on the same day. The Sensex opened sharply higher by 3,656.74 points but later retreated by 1,468.40 points, closing at 83,854.80, down 2.68%. Despite this volatility, the Sensex remains close to its own 52-week high of 86,159.02, just 2.75% away. Mega-cap stocks led the market rally, although the index traded below its 50-day moving average, which itself remains above the 200-day moving average, indicating a cautiously optimistic market environment.

Financial Performance Underpinning the Rally

Sustained financial strength has been a key driver behind Shriram Finance Ltd’s stock appreciation. The company has reported positive results for nine consecutive quarters, with its latest quarterly figures marking record highs. Net sales reached Rs.12,170.76 crore, while profit before tax excluding other income stood at Rs.3,337.78 crore. Net profit after tax also hit a peak of Rs.2,529.67 crore, reflecting consistent operational efficiency and growth.

Over the long term, Shriram Finance Ltd has demonstrated healthy growth metrics, with net sales expanding at an annualised rate of 22.46% and operating profit increasing by 23.66%. The company’s average return on equity (ROE) stands at a solid 14.00%, underscoring its ability to generate shareholder value effectively.

Institutional Confidence and Market Position

Institutional investors hold a significant 68.52% stake in Shriram Finance Ltd, indicating strong backing from entities with extensive analytical resources. This high level of institutional ownership often correlates with market confidence in the company’s fundamentals and governance standards.

The company’s market capitalisation grade is rated at 1, reflecting its status as a large-cap entity within the NBFC sector. Its Mojo Score of 72.0 and recent upgrade from a Hold to a Buy grade on 15 December 2025 further highlight the improving perception of its financial health and growth prospects.

Valuation and Risk Considerations

Despite the strong performance, Shriram Finance Ltd’s valuation metrics suggest a premium positioning. The stock trades at a price-to-book value of 3, which is elevated relative to its peers’ historical averages. Additionally, the company’s price-to-earnings-to-growth (PEG) ratio stands at 1.5, reflecting a valuation that factors in its profit growth rate of 13% over the past year.

While these valuation levels indicate investor willingness to pay a premium for quality and growth, they also imply that the stock’s price is sensitive to changes in earnings momentum or broader market sentiment.

Comparative Performance and Market Leadership

Over the last three years, Shriram Finance Ltd has consistently outperformed the BSE500 index in each annual period, reinforcing its position as a market leader within the NBFC sector. Its one-year return of 83.26% starkly contrasts with the Sensex’s modest 8.62% gain, highlighting the stock’s relative strength amid broader market fluctuations.

The company’s ability to sustain growth and profitability, combined with strong institutional support and a favourable sectoral backdrop, has contributed to its recent price appreciation and the attainment of this new 52-week high.

Summary of Key Metrics

To encapsulate, Shriram Finance Ltd’s stock performance on 3 February 2026 was characterised by:

• New 52-week high of Rs.1044.4, an 8.54% intraday gain
• Day change of +4.75%, outperforming sector and Sensex
• Strong financial results with record quarterly sales and profits
• High institutional ownership at 68.52%
• Mojo Score of 72.0 and upgraded Mojo Grade to Buy
• Premium valuation with price-to-book of 3 and PEG ratio of 1.5

This milestone reflects the company’s sustained growth trajectory and robust market positioning within the NBFC sector.

Market Environment and Sector Dynamics

The NBFC sector has shown resilience, with the Finance/NBFC index gaining 3.17% on the day. Shriram Finance Ltd’s outperformance within this sector underscores its leadership and the positive reception of its recent financial disclosures. The broader market’s mixed performance, with the Sensex retreating after a strong opening, further accentuates the stock’s relative strength.

Conclusion

Shriram Finance Ltd’s achievement of a new 52-week high at Rs.1044.4 marks a significant milestone in its market journey. Supported by strong quarterly results, solid long-term growth metrics, and high institutional confidence, the stock’s momentum reflects its fundamental strength and sectoral leadership. While valuation metrics indicate a premium, the company’s consistent performance and market positioning continue to underpin its elevated share price.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →