Shriram Finance Ltd Sees Robust Value Trading and Institutional Interest Amid NBFC Sector Gains

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Shriram Finance Ltd, a leading player in the Non Banking Financial Company (NBFC) sector, has witnessed significant trading activity with a notable upgrade in its Mojo Grade to 'Buy' from 'Hold' as of 15 Dec 2025. The stock’s strong value turnover, rising investor participation, and outperformance relative to its sector underscore growing market confidence ahead of the new year.



High Value Turnover and Trading Volumes Signal Investor Interest


On 31 Dec 2025, Shriram Finance Ltd (NSE: SHRIRAMFIN) emerged as one of the most actively traded equities by value, with a total traded volume of 13,50,817 shares and a total traded value of ₹13,295.28 lakhs. This substantial turnover reflects heightened investor interest and liquidity in the stock, making it a focal point for market participants.


The stock opened at ₹983.0 and traded within a narrow intraday range of ₹979.4 to ₹990.0, closing at ₹986.4 as of 09:44:46 IST. This represents a day gain of 0.85%, outperforming the NBFC sector’s 0.43% and the broader Sensex’s 0.17% returns on the same day. The stock’s ability to outperform its sector and benchmark indices highlights its relative strength amid a mixed market environment.



Technical Strength Evident in Moving Averages and Price Momentum


Shriram Finance is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained bullish momentum. The stock has recorded gains for two consecutive days, delivering a cumulative return of 3.37% over this period. Such technical indicators suggest robust underlying demand and positive market sentiment.


Additionally, the stock’s narrow trading range of ₹9.7 on the day indicates controlled volatility, which may appeal to investors seeking stability alongside growth potential.



Rising Investor Participation and Delivery Volumes


Investor engagement has notably increased, with delivery volumes on 30 Dec 2025 reaching 1.15 crore shares, marking a 56.82% rise compared to the five-day average delivery volume. This surge in delivery volumes points to genuine buying interest rather than speculative intraday trading, reinforcing confidence in the stock’s medium-term prospects.


Liquidity remains ample, with the stock’s traded value supporting trade sizes up to ₹22 crore based on 2% of the five-day average traded value. Such liquidity levels are favourable for institutional investors and large order flows, facilitating efficient execution without significant price impact.




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Mojo Score Upgrade Reflects Improved Fundamentals and Market Outlook


MarketsMOJO’s proprietary Mojo Score for Shriram Finance stands at 72.0, categorising the stock as a 'Buy' with a recent upgrade from 'Hold' on 15 Dec 2025. This upgrade reflects an improved assessment of the company’s fundamentals, valuation, and technical outlook. The Mojo Grade change signals enhanced confidence from the research team, suggesting that the stock is well-positioned to deliver favourable returns.


The company’s market capitalisation is substantial at ₹1,84,214 crore, placing it firmly in the Large Cap segment with a Market Cap Grade of 1, indicating strong market presence and stability.



Sector Context and Comparative Performance


Within the NBFC sector, Shriram Finance’s recent outperformance is noteworthy. The sector has been navigating challenges related to credit growth and regulatory scrutiny, yet Shriram Finance’s ability to maintain upward momentum and strong trading volumes sets it apart from peers. Its consistent gains over the past two days and positive technical indicators suggest resilience amid sector headwinds.


Investors should note that while the stock has shown strength, the NBFC sector remains sensitive to macroeconomic factors such as interest rate movements and credit demand cycles. Continuous monitoring of these variables alongside company-specific developments is advisable.



Valuation and Quality Metrics


Although detailed valuation multiples are not disclosed here, the Mojo Score upgrade implies that Shriram Finance’s current price levels are supported by attractive valuations relative to its earnings growth and risk profile. The company’s liquidity and large market cap further enhance its appeal to institutional investors seeking quality NBFC exposure.


Quality grades embedded in the Mojo framework consider earnings consistency, asset quality, and management effectiveness, all of which appear to have improved sufficiently to warrant the recent upgrade.




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Institutional Interest and Large Order Flow


The surge in delivery volumes and high traded value indicate strong institutional participation. Large investors typically prefer stocks with ample liquidity and stable price action, both of which Shriram Finance currently exhibits. The stock’s ability to absorb sizeable trades without excessive price swings is a positive sign for sustained institutional interest.


Moreover, the stock’s recent outperformance relative to the sector and benchmark indices suggests that institutional investors may be positioning for further gains, anticipating favourable earnings or macroeconomic developments in the NBFC space.



Outlook and Investor Considerations


Given the current momentum, upgraded Mojo Grade, and robust trading metrics, Shriram Finance Ltd appears well-placed to continue its positive trajectory in the near term. Investors should, however, remain vigilant to sector-specific risks such as credit quality deterioration or regulatory changes that could impact NBFC valuations.


For those seeking exposure to a large-cap NBFC with strong liquidity and improving fundamentals, Shriram Finance offers a compelling proposition. The stock’s technical strength and rising investor participation further enhance its attractiveness as a core portfolio holding.



Summary


Shriram Finance Ltd’s recent trading activity underscores its status as a high-value, liquid stock with growing institutional interest. The upgrade in Mojo Grade to 'Buy' reflects improved fundamentals and market sentiment, while the stock’s outperformance relative to sector peers and the Sensex highlights its resilience. With strong delivery volumes and technical indicators supporting the uptrend, Shriram Finance remains a key stock to watch in the NBFC sector heading into 2026.






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