Strong Rally and Market Outperformance
On 26 Feb 2026, Shriram Finance Ltd recorded its highest price in the last 52 weeks at Rs.1105.7, reflecting a day-on-day gain of 1.28%. This performance notably outpaced the NBFC sector, with the stock outperforming its peers by 0.79% today. The stock has been on an upward trajectory for the past two consecutive days, delivering a cumulative return of 3.38% during this period.
The stock’s price currently trades above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bullish momentum. This technical strength aligns with the broader market environment, where the Sensex opened 142.71 points higher and is trading at 82,515.48, up 0.29% for the day.
Impressive One-Year Performance
Over the last 12 months, Shriram Finance Ltd has delivered a remarkable return of 91.50%, significantly outperforming the Sensex’s 10.60% gain over the same period. The stock’s 52-week low was Rs.566.4, highlighting the substantial appreciation in value investors have witnessed. This performance places Shriram Finance among the top performers within the NBFC sector and the broader market.
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Fundamental Strength Underpinning the Rally
Shriram Finance Ltd’s recent price surge is supported by strong fundamental metrics. 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 firm has reported positive results for nine consecutive quarters, underscoring consistent operational performance.
In the latest quarter, the company posted its highest-ever net sales of Rs.12,170.76 crores, profit before tax excluding other income at Rs.3,337.78 crores, and net profit after tax of Rs.2,529.67 crores. These figures reflect robust earnings growth and operational efficiency, which have contributed to investor confidence and the stock’s upward momentum.
Institutional Backing and Quality Scores
Institutional investors hold a significant 68.52% stake in Shriram Finance Ltd, indicating strong confidence from entities with extensive analytical resources. The company’s Mojo Score stands at 72.0, with a recent upgrade in its Mojo Grade from Hold to Buy on 15 Dec 2025, reflecting improved market sentiment and fundamental quality.
The stock’s market capitalisation grade is rated at 1, indicating a large-cap status within its sector. This institutional support and quality grading have likely played a role in sustaining the stock’s positive price action.
Valuation and Risk Considerations
Despite the strong performance, Shriram Finance Ltd trades at a premium valuation relative to its peers. The company’s return on equity (ROE) averages 14.00%, with a current ROE of 14.3%. However, the price-to-book value stands at 3.4, which is higher than the sector average, suggesting an expensive valuation.
Additionally, while the stock has generated a 91.50% return over the past year, profit growth has been more moderate at 13%, resulting in a price/earnings to growth (PEG) ratio of 1.7. These factors indicate that the stock’s premium pricing reflects expectations of continued strong performance but also warrants careful consideration of valuation metrics.
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Market Context and Sector Positioning
The broader market environment has been supportive, with the Sensex trading 4.42% below its own 52-week high of 86,159.02. While the Sensex currently trades below its 50-day moving average, the 50-day average remains above the 200-day average, indicating a generally positive medium-term trend.
Within this context, mega-cap stocks have been leading gains, contributing to the Sensex’s 0.29% rise today. Shriram Finance Ltd’s outperformance relative to the NBFC sector and the broader market highlights its strong sectoral positioning and resilience.
Consistent Returns Over Multiple Years
Beyond the one-year horizon, Shriram Finance Ltd has consistently outperformed the BSE500 index in each of the last three annual periods. This track record of sustained returns reinforces the company’s standing as a reliable performer within the NBFC sector and the Indian equity market.
Summary of Key Metrics
To summarise, Shriram Finance Ltd’s key performance indicators include:
- New 52-week high price: Rs.1105.7
- One-year return: 91.50%
- Net sales growth rate: 22.46% annually
- Operating profit growth rate: 23.66% annually
- Return on equity: 14.00% average, 14.3% current
- Price-to-book value: 3.4
- PEG ratio: 1.7
- Institutional holdings: 68.52%
- Mojo Score: 72.0 (Buy grade since 15 Dec 2025)
These figures collectively illustrate the company’s strong financial health and market performance, which have driven the recent price appreciation to a new 52-week high.
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