Should I buy Shriram Finance stock in 2025?
Is it the right time to buy Shriram Finance?
ScoreShriram Finance Limited, a key NBFC player on both the NSE and BSE, currently trades at approximately ₹675.40 with an average daily trading volume of about 6.55 million shares. The stock has delivered a robust one-year gain of over 18%, supported by sustained double-digit revenue and profit growth in its latest quarterly and annual reports. Notable recent events include the announcement of a ₹3 dividend, an investment by Sanlam, and plans to raise $1 billion from overseas markets, all pointing to the company's strategic ambition and financial stability. Market sentiment is broadly constructive, underpinned by Shriram Finance's leadership in used commercial vehicle financing and ongoing expansion across rural and SME segments—a space benefiting from India’s growing demand for credit outside traditional banks. The sector as a whole is experiencing positive momentum, especially for diversified NBFCs with deep outreach. Analyst consensus from more than 15 national and international banks places the stock’s target price at ₹878, suggesting further upside potential. With its solid fundamentals, attractive valuation, and clear growth drivers, Shriram Finance presents a compelling case for investors watching India’s dynamic financial services sector.
- ✅Consistent double-digit revenue and profit growth year-on-year.
- ✅Leader in used commercial vehicle financing across India.
- ✅Expanding presence in rural and SME segments.
- ✅Strong brand and part of the reputable Shriram Group.
- ✅Broad institutional investor confidence and target price consensus.
- ❌Higher exposure to rural economy may lead to periodic volatility.
- ❌Interest coverage ratio is moderate, requiring prudent monitoring.
Score- ✅Consistent double-digit revenue and profit growth year-on-year.
- ✅Leader in used commercial vehicle financing across India.
- ✅Expanding presence in rural and SME segments.
- ✅Strong brand and part of the reputable Shriram Group.
- ✅Broad institutional investor confidence and target price consensus.
Is it the right time to buy Shriram Finance?
- ✅Consistent double-digit revenue and profit growth year-on-year.
- ✅Leader in used commercial vehicle financing across India.
- ✅Expanding presence in rural and SME segments.
- ✅Strong brand and part of the reputable Shriram Group.
- ✅Broad institutional investor confidence and target price consensus.
- ❌Higher exposure to rural economy may lead to periodic volatility.
- ❌Interest coverage ratio is moderate, requiring prudent monitoring.
Score- ✅Consistent double-digit revenue and profit growth year-on-year.
- ✅Leader in used commercial vehicle financing across India.
- ✅Expanding presence in rural and SME segments.
- ✅Strong brand and part of the reputable Shriram Group.
- ✅Broad institutional investor confidence and target price consensus.
- What is Shriram Finance?
- How much is Shriram Finance stock?
- Our full analysis of Shriram Finance stock
- How to Buy Shriram Finance Stock in India
- Our 7 tips for buying Shriram Finance stock
- The latest news about Shriram Finance
- FAQ
- On the same topic
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At HelloSafe, our expert has been tracking the performance of Shriram Finance for over three years. Every month, over a million users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Shriram Finance.
What is Shriram Finance?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Strong presence in India’s NBFC market, well known for vehicle financing. |
| 💼 Market | NSE, BSE | Listing on both major exchanges ensures good market access and liquidity. |
| 🏛️ ISIN code | INE721A01047 | This code allows easy identification and trade for both Indian and global investors. |
| 👤 CEO | Y.S. Chakravarti | Long-term leadership brings consistent strategy and focus on rural expansion. |
| 🏢 Market cap | ₹1,27,019 crores | Large-cap status highlights Shriram Finance’s systemic importance in Indian finance. |
| 📈 Revenue | ₹43,941 crores (FY25) | Revenue growth is strong, boosted by retail and rural financing demand. |
| 💹 EBITDA | ₹9,576 crores (Net Profit FY25) | Healthy profitability points to efficient operations and business quality. |
| 📊 P/E Ratio (Price/Earnings) | 13.30 | Attractive valuation offers growth prospects compared to many NBFC peers. |
How much is Shriram Finance stock?
The price of Shriram Finance stock is falling this week. The current stock price is ₹675.40, reflecting a slight drop of ₹1.50 (-0.22%) over the last 24 hours and a weekly decrease of 3.95%. The company has a market capitalization of ₹1,27,019 crores, with an average three-month daily trading volume of 6.55 million shares. Shriram Finance is trading at a P/E ratio of 13.30, offers a dividend yield of 1.47%, and has a stock beta of 1.69. Given its attractive valuation and sustained market activity, the stock offers compelling long-term potential despite short-term volatility.
Our full analysis of Shriram Finance stock
We have carefully reviewed Shriram Finance’s latest financial results and performance trajectory over the past three years, applying an advanced analytical framework that merges diverse sources—ranging from market data and technical indicators to peer benchmarks and competitive intelligence—through our proprietary algorithms. The data highlights evolving trends within the NBFC sector and the company’s dynamic momentum in 2025. So, why might Shriram Finance stock once again become a strategic entry point into the Indian financial services sector in 2025?
Recent performance and market context
Shriram Finance's stock price stands at ₹675.40, reflecting an 18.5% rise over the past year and a steady 10.8% gain in the last six months, despite a short-term weekly dip of 3.95% and minor intraday volatility. This resilience comes as the company recently surpassed analyst expectations in Q1 FY25, reporting net profit of ₹2,031 crores and revenue of ₹9,561 crores, both up strongly on a year-over-year basis. In the context of a vibrant Indian NBFC ecosystem—characterized by robust credit demand, digital transformation, and regulatory support—Shriram Finance is leveraging its leadership in commercial vehicle financing and expanding strategically into rural and SME lending. The result is a company with visible growth drivers in India’s fast-evolving financial landscape.
Technical analysis
From a technical standpoint, Shriram Finance maintains a constructive long-term structure. The stock remains above its 100-day and 200-day moving averages, with recent closes above ₹640 (100-day) and ₹628 (200-day) signaling sustained medium-term strength. The RSI sits at 50.5, indicating a neutral setup with ample upside room before entering overbought territory. MACD at 7.6 shows a bullish cross, while stable momentum is evident in the Money Flow Index (63.2). Strong support is clustered between ₹659 and ₹671, with resistance at ₹682–₹693. The price's consolidation above key moving averages and a bullish, if moderate, momentum indicate the possibility of renewed upward movement, making the current zone attractive for accumulation.
Fundamental analysis
Shriram Finance’s fundamentals speak to a growing, diversified enterprise. Latest annual revenue reached ₹43,941 crores, with net profit of ₹9,576 crores and a healthy ROE of 16.91%. Notably, revenue grew 26% year-over-year, while EPS and net profit display solid double-digit growth. The company enjoys a robust P/E ratio of 13.30 and a price-to-book of only 0.70, suggesting the valuation remains attractive relative to sector averages. Dividend yield stands at 1.47%, underlining consistent shareholder returns. A rare mix of scale, margin discipline, and aggressive rural/SMS expansion positions Shriram Finance as the largest retail asset financing NBFC in India. Its 1,758 branches and 831 rural centers power a strong national franchise, supported by ongoing digitization and diversification into insurance and housing finance.
Volume and liquidity
Liquidity in Shriram Finance stock is excellent, with an average daily trading volume of 6.55 million shares over the past three months, ensuring narrow bid-ask spreads and a robust execution environment for institutions and retail investors alike. The capital structure—over 53% held by foreign institutional investors and an additional 15% by domestic funds—reflects deep market confidence and facilitates responsive, dynamic price discovery. Such liquidity is crucial for both nimble traders and fundamental long-term allocators.
Catalysts and positive outlook
- Continued market leadership in used commercial vehicle finance, a high-growth, underpenetrated segment.
- Strategic rural and SME expansion, leveraging network depth for financial inclusion.
- New capital raising initiatives, like the planned $1 billion international fundraise, to fuel further asset growth and innovation.
- Recent dividend increase and strong analyst sentiment (over 28 “Buy” or “Strong Buy” ratings) indicate confidence in the company's prospects.
- Digital transformation efforts—enhanced underwriting, analytics, and customer onboarding—position Shriram Finance at the forefront of India’s rapidly digitalizing financial services market.
- Sector tailwinds, including rising formalization of credit, pro-NBFC regulation, and heightened economic activity, offer additional growth levers.
Investment strategies
- Short-term traders may find opportunity near technical support around ₹671–₹660, anticipating momentum-driven rebounds as the stock remains above medium-term averages.
- Medium-term players could accumulate ahead of upcoming catalysts such as quarterly results or successful capital-raising announcements, seeking to benefit from valuation re-rating.
- Long-term investors may focus on the compelling fundamentals—sector leadership, attractive valuation, steady dividends, and scalable growth—using systematic allocation to build positions on market pullbacks.
- The healthy beta (1.69) supports opportunistic trading and portfolio diversification in tandem with India’s growing financial sector.
Is it the right time to buy Shriram Finance?
With its strong earnings growth, low valuation multiples, resilient balance sheet, and sector-leading distribution, Shriram Finance offers a compelling case for inclusion in a diversified portfolio targeting India’s dynamic financial services sector. Sustained improvements in rural credit, robust demand for vehicle financing, and aggressive expansion initiatives support an optimistic medium- to long-term view. While vigilance toward broader rate and regulatory risks is always prudent, the current technical and fundamental setup seems to represent an excellent opportunity for investors seeking a combination of quality, yield, and growth potential. Shriram Finance stands poised for a new phase of value creation and remains a stock to watch closely as India’s NBFC sector enters its next cycle of expansion.
How to Buy Shriram Finance Stock in India
Buying Shriram Finance stock online is both straightforward and secure when you use a regulated broker in India. You have two main options: spot buying, where you purchase and hold actual shares, and CFD trading, which allows you to speculate on price movements with leverage. Both have unique benefits and risks, so it’s wise to check our broker comparison further down the page before making your decision.
Spot buying
A cash purchase of Shriram Finance stock means you own the underlying shares in your demat account, making you eligible for dividends and voting rights. Most Indian brokers charge a fixed commission per transaction, typically between ₹20 and ₹50 depending on the provider.
Shriram Finance: Stock Gain Scenario
If the Shriram Finance share price is ₹675.40, you can buy around 14 shares with a ₹14,700 (approx. $1,000) stake, including a brokerage fee of around ₹420 ($5).
Gain scenario: If the share price rises by 10%, your shares are now worth ₹16,170 (approx. $1,100).
Result: +₹1,470 (+$100) gross gain, i.e. +10% on your investment.
Trading via CFD
CFD (Contract for Difference) trading on Shriram Finance stock allows you to speculate on price movements without owning the shares directly. With CFDs, you use leverage—boosting your exposure while only investing a fraction of the total position. Instead of a set commission, you’ll typically pay the spread and overnight financing costs for positions held beyond one trading day.
CFD Gain Scenario: Shriram Finance
You open a CFD position on Shriram Finance shares with a $1,000 (approx. ₹84,500) stake and apply 5x leverage. This creates market exposure of $5,000 (approx. ₹4,22,500).
Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain (approx. ₹33,800), on your $1,000 bet (excluding fees).
Final advice
It’s essential to compare brokers’ fee structures, spreads, and platform features before purchasing Shriram Finance shares online, as these factors can impact your overall returns. The right method—spot buying for stability or CFDs for short-term trading—depends entirely on your individual investment goals and risk appetite. You’ll find a detailed broker comparison further down the page to assist you in making an informed decision.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Shriram Finance stock
| 📊 Step | 📝 Specific tip for Shriram Finance |
|---|---|
| Analyze the market | Review trends in commercial vehicle financing and NBFC sector growth, which directly drive Shriram Finance’s profits. |
| Choose the right trading platform | Select a broker offering access to NSE/BSE at competitive fees and solid support for Shriram Finance trades. |
| Define your investment budget | Assess your risk appetite and plan an amount suited to Shriram Finance’s moderate price volatility. |
| Choose a strategy (short or long term) | Favour a long-term approach to benefit from Shriram Finance’s steady expansion and positive growth outlook. |
| Monitor news and financial results | Keep track of quarterly earnings and analyst reports, as market-moving news often impacts Shriram Finance. |
| Use risk management tools | Set stop-loss orders and diversify with other financials to manage potential sector or rural exposure risks. |
| Sell at the right time | Consider profit-taking near price peaks or after strong results, and review when sector outlook shifts. |
The latest news about Shriram Finance
Shriram Finance announced a dividend of ₹3.00 per share with an ex-dividend date of 11 July 2025. The payment will be processed before 16 August 2025, highlighting the company’s stable returns policy and commitment to shareholder value. The regular dividend is a positive signal of strong underlying profitability and cash flow management.
Shriram Finance’s Q1 FY25 results delivered a net profit of ₹2,031 crores, up 18.6% year-on-year. This quarterly result exceeded analyst expectations and was driven by double-digit revenue growth and expanding net interest margins. The performance confirms ongoing momentum in core businesses and the benefit of a diversified loan book spanning vehicles, MSME, and rural lending.
The company is set to expand by seeking up to $1 billion in overseas funding for business growth. This planned fundraising will support accelerated loan growth, digital initiatives, and further expansion of rural and semi-urban operations, positioning Shriram Finance for continued domain leadership in India’s NBFC sector.
The MACD technical indicator flashes a bullish signal, with the stock trading above its medium-term moving averages. Stable RSI and MFI readings suggest healthy buying activity, while key support at ₹670 and resistance at ₹682 frame a constructive technical outlook for short- to medium-term investors.
Sanlam’s recent ₹105 crores investment in Shriram AMC strengthens the group’s diversified financial platform. The partnership enhances product breadth in asset management and provides additional cross-selling opportunities across the Shriram Finance distribution network, deepening its ties to India’s fast-evolving financial services environment.
FAQ
What is the latest dividend for Shriram Finance stock?
Shriram Finance continues to pay a regular dividend, with the most recent declared at ₹3.00 per share. The record date is 11 July 2025 and payment is expected before 16 August 2025. This dividend reflects a policy of rewarding shareholders, supported by consistent profits and sector-leading asset growth.
What is the forecast for Shriram Finance stock in 2025, 2026, and 2027?
Using the current price of ₹675.40, the projected share values are ₹878 for end 2025, ₹1,013 for end 2026, and ₹1,350 for end 2027. These projections are reinforced by strong balance sheet fundamentals and a positive industry outlook, supported by continued expansion in lending and rural finance.
Should I sell my Shriram Finance shares?
Holding Shriram Finance shares appears sensible given the company’s strategic market leadership, steady earnings, and growth momentum in commercial and rural finance. The stock’s history of long-term value creation and strong analyst sentiment suggest its fundamentals remain robust. Maintaining your position may be rewarding as Shriram Finance continues to gain market share.
How are dividends and capital gains on Shriram Finance shares taxed in India?
For Indian residents, dividends from Shriram Finance are added to total income and taxed as per your slab rate, with potential tax deducted at source. Capital gains tax applies on sale: short-term gains (if held less than a year) are taxed at 15%, long-term gains (beyond a year) at 10% above ₹1 lakh. The stock is not eligible for any PEA or foreign savings scheme.
What is the latest dividend for Shriram Finance stock?
Shriram Finance continues to pay a regular dividend, with the most recent declared at ₹3.00 per share. The record date is 11 July 2025 and payment is expected before 16 August 2025. This dividend reflects a policy of rewarding shareholders, supported by consistent profits and sector-leading asset growth.
What is the forecast for Shriram Finance stock in 2025, 2026, and 2027?
Using the current price of ₹675.40, the projected share values are ₹878 for end 2025, ₹1,013 for end 2026, and ₹1,350 for end 2027. These projections are reinforced by strong balance sheet fundamentals and a positive industry outlook, supported by continued expansion in lending and rural finance.
Should I sell my Shriram Finance shares?
Holding Shriram Finance shares appears sensible given the company’s strategic market leadership, steady earnings, and growth momentum in commercial and rural finance. The stock’s history of long-term value creation and strong analyst sentiment suggest its fundamentals remain robust. Maintaining your position may be rewarding as Shriram Finance continues to gain market share.
How are dividends and capital gains on Shriram Finance shares taxed in India?
For Indian residents, dividends from Shriram Finance are added to total income and taxed as per your slab rate, with potential tax deducted at source. Capital gains tax applies on sale: short-term gains (if held less than a year) are taxed at 15%, long-term gains (beyond a year) at 10% above ₹1 lakh. The stock is not eligible for any PEA or foreign savings scheme.
On the same topic
