Strong Rally and Market Outperformance
On 31 Dec 2025, Shriram Finance Ltd recorded its highest price in the past year at Rs.993.35, marking a significant milestone for the stock. This new peak comes after a consecutive two-day gain, during which the stock appreciated by 3.76%. Today’s performance also outpaced the NBFC sector by 0.47%, signalling relative strength amid broader market movements.
The stock’s upward trajectory is further supported by its position above all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Such technical indicators typically reflect sustained buying interest and positive investor sentiment.
Contextualising the Market Environment
The broader market environment has been favourable, with the Sensex opening 118.50 points higher and trading at 84,946.75, up 0.32%. The benchmark index is nearing its own 52-week high, currently just 1.43% shy of 86,159.02. The Sensex’s position above its 50-day moving average, which itself is above the 200-day moving average, indicates a bullish trend that has likely contributed to the positive momentum in Shriram Finance Ltd’s shares.
Additionally, the BSE Small Cap index led gains today with a 0.9% increase, reflecting broad-based strength in the market that may have bolstered investor appetite for financial stocks, including NBFCs like Shriram Finance.
Impressive One-Year Performance
Over the past year, Shriram Finance Ltd has delivered a remarkable return of 71.11%, substantially outperforming the Sensex’s 8.71% gain during the same period. This performance highlights the company’s ability to generate superior returns relative to the broader market, reinforcing its position as a strong player within the NBFC sector.
The stock’s 52-week low was Rs.493.60, illustrating a near doubling in value over the last twelve months. This substantial appreciation reflects both the company’s operational progress and favourable market conditions.
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Fundamental Strength Underpinning the Rally
Shriram Finance Ltd’s recent price surge is supported by solid fundamental metrics. The company boasts a strong long-term Return on Equity (ROE) averaging 14.00%, reflecting efficient capital utilisation and profitability. This is complemented by healthy growth rates, with net sales expanding at an annualised rate of 22.00% and operating profit increasing by 22.80% annually.
Quarterly financials further reinforce this strength. The company reported its highest-ever net sales of Rs.11,912.44 crore, alongside a peak PBDIT of Rs.8,803.40 crore and PBT less other income at Rs.3,104.12 crore. These figures mark consistent positive results over eight consecutive quarters, signalling sustained operational excellence.
Institutional Confidence and Valuation Considerations
Institutional investors hold a significant 68.27% stake in Shriram Finance Ltd, indicating strong backing from entities with extensive analytical capabilities. Such holdings often provide stability and reflect confidence in the company’s fundamentals.
However, the stock trades at a premium valuation with a Price to Book (P/B) ratio of 3, which is higher than the average historical valuations of its peers. While the ROE of 14.3% justifies some premium, the Price/Earnings to Growth (PEG) ratio stands at 2, reflecting a valuation that factors in growth expectations.
Profit growth over the past year has been 10.7%, which, while positive, is more moderate compared to the stock’s price appreciation. This divergence suggests that the market is pricing in sustained growth and quality fundamentals.
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Consistent Returns and Sector Leadership
Over the last three years, Shriram Finance Ltd has consistently outperformed the BSE500 index annually, underscoring its leadership within the NBFC sector. The stock’s 71.11% return in the past year is a testament to its ability to generate value for shareholders through both capital appreciation and operational growth.
The company’s market capitalisation grade stands at 1, reflecting its status as a large-cap entity with strong market presence and liquidity.
Its Mojo Score of 72.0 and recent upgrade from a Hold to a Buy grade on 15 Dec 2025 further highlight the improving outlook based on comprehensive multi-parameter analysis.
Summary of Key Metrics
To summarise, Shriram Finance Ltd’s key performance indicators as of 31 Dec 2025 include:
- New 52-week high price: Rs.993.35
- One-year return: 71.11%
- ROE: 14.00% (average long term)
- Net sales growth rate: 22.00% annually
- Operating profit growth rate: 22.80% annually
- Institutional holdings: 68.27%
- Price to Book Value: 3
- PEG ratio: 2
- Mojo Score: 72.0 (Buy grade)
These figures collectively illustrate a company that has demonstrated strong financial health, consistent growth, and market leadership, culminating in the recent milestone of a new 52-week high.
Market Position and Sector Dynamics
Shriram Finance Ltd operates within the NBFC sector, which has shown resilience and growth potential in the current market cycle. The company’s ability to outperform its sector peers and the broader market indices reflects its competitive positioning and effective execution of business strategies.
The stock’s current momentum is supported by both fundamental strength and positive technical signals, making the new 52-week high a noteworthy achievement in its trading history.
Conclusion
The attainment of a new 52-week high at Rs.993.35 by Shriram Finance Ltd marks a significant milestone that encapsulates the company’s robust financial performance, favourable market conditions, and sustained investor confidence. With strong fundamentals, consistent quarterly results, and a solid track record of returns, the stock’s recent rally reflects its standing as a prominent player in the NBFC sector.
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