Stock Performance and Market Context
On 9 February 2026, Shriram Finance Ltd’s stock surged to an intraday high of Rs.1046.5, representing a 4.4% increase on the day and outperforming its sector by 3.43%. The stock has been on an upward trajectory for two consecutive days, delivering a cumulative return of 5.53% during this period. This rally has propelled the share price well above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling strong technical momentum.
The broader market backdrop has also been supportive. The Sensex opened higher at 84,177.51 points, gaining 597.11 points (0.71%) before trading at 83,985.81 points (0.49%) during the session. The benchmark index is currently just 2.59% shy of its own 52-week high of 86,159.02 points, buoyed by mega-cap stocks leading the gains. Despite trading below its 50-day moving average, the Sensex’s 50DMA remains above its 200DMA, indicating a positive medium-term trend. The index has recorded a 3% gain over the past three weeks, reflecting sustained market optimism.
Strong Long-Term Growth and Financial Metrics
Shriram Finance Ltd’s impressive stock performance is underpinned by solid fundamentals. The company has demonstrated healthy long-term growth, with net sales expanding at an annual rate of 22.46% and operating profit increasing by 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 (PBT less OI) at Rs.3,337.78 crore, and profit after tax (PAT) hitting Rs.2,529.67 crore – all the highest recorded figures to date.
Return on Equity (ROE) remains robust at 14.00%, reflecting efficient capital utilisation and consistent profitability. The company has also maintained positive results for nine consecutive quarters, reinforcing its steady operational performance. Institutional investors hold a significant 68.52% stake in the company, indicating strong confidence from entities with extensive analytical resources.
Strong fundamentals, steady climb upward! This Large Cap from Telecommunication sector earned its Reliable Performer badge through consistent execution. Safety meets solid returns here!
- - Reliable Performer certified
- - Consistent execution proven
- - Large Cap safety pick
Valuation and Comparative Performance
While Shriram Finance Ltd’s valuation is on the higher side, with a price-to-book value of 3.1 and a PEG ratio of 1.6, this premium reflects the company’s consistent earnings growth and market leadership within the NBFC sector. Over the past year, the stock has delivered an exceptional return of 86.88%, significantly outperforming the Sensex’s 7.86% gain during the same period. This outperformance extends beyond the last year, with the stock surpassing the BSE500 index in each of the previous three annual periods.
The stock’s 52-week low stands at Rs.526, highlighting the substantial appreciation in value over the past year. Despite the elevated valuation, the company’s steady profit growth of 13% over the last year supports the premium pricing relative to peers.
Technical Momentum and Market Positioning
Shriram Finance Ltd’s current trading levels above all major moving averages indicate strong technical momentum. The stock’s recent gains have been supported by positive market sentiment and robust financial results, which have reinforced investor confidence. The company’s market capitalisation grade remains at 1, reflecting its status as a large-cap entity with significant market presence.
The day’s price action, with a 4.27% increase and a new 52-week high, confirms the stock’s upward trajectory. This momentum is further bolstered by the broader market’s positive trend, with the Sensex on a three-week consecutive rise and mega-cap stocks leading the charge.
Thinking about Shriram Finance Ltd? Our real-time Verdict report breaks down everything – from financial health and peer comparison to technical signals and fair valuation for this large-cap stock!
- - Real-time Verdict available
- - Financial health breakdown
- - Fair valuation calculated
Summary of Key Metrics
Shriram Finance Ltd’s recent performance highlights include:
- New 52-week high of Rs.1046.5 reached on 9 February 2026
- Year-to-date gain of 4.27% on the day of the new high
- Consecutive two-day gain delivering 5.53% returns
- Net sales growth at an annual rate of 22.46%
- Operating profit growth at 23.66% annually
- Return on Equity steady at 14.00%
- Institutional holdings at 68.52%
- One-year stock return of 86.88%, outperforming Sensex by nearly 79 percentage points
These figures collectively illustrate the company’s strong market position and sustained growth trajectory within the NBFC sector.
Market Capitalisation and Sectoral Position
Shriram Finance Ltd operates within the Non Banking Financial Company sector, a segment that has witnessed considerable investor interest due to its critical role in credit distribution and financial inclusion. The company’s market capitalisation grade of 1 places it among the leading large-cap stocks in the sector, further emphasising its prominence and stability.
The stock’s ability to maintain gains above all major moving averages suggests continued investor confidence in its business model and financial health. This technical strength, combined with solid fundamentals, has been instrumental in driving the stock to its new 52-week high.
Conclusion
Shriram Finance Ltd’s attainment of a new 52-week high at Rs.1046.5 marks a noteworthy milestone reflecting both strong financial performance and positive market sentiment. The stock’s consistent gains, robust quarterly results, and favourable long-term growth metrics have collectively contributed to this achievement. Trading well above key moving averages and outperforming its sector and benchmark indices, Shriram Finance Ltd continues to demonstrate resilience and strength within the NBFC space.
Unlock special upgrade rates for a limited period. Start Saving Now →
