Is Shriram Finance stock a buy right now?
Shriram Finance, one of India’s largest non-banking financial companies (NBFCs), has shown resilience and adaptability within the dynamic Indian retail asset financing sector. As of early May 2025, the stock is trading near ₹629 on the NSE, reflecting a steady average daily trading volume of approximately 8.7 million shares. While recent weeks have witnessed some volatility, driven by a shortfall in quarterly profits relative to analyst expectations and rising finance costs, market sentiment remains constructive. Investors seem reassured by the company’s robust fundamentals: FY2025 saw assets under management (AUM) grow by 17%, and net profit by over 15% year-on-year. Recent developments, such as the pursuit of yen-denominated fundraising and a $500 million external commercial borrowing, demonstrate strategic intent to diversify funding sources. Shriram’s expansion into green finance and its strong franchise in pre-owned commercial vehicle lending further bolster its long-term story. Coupled with a moderate valuation (P/E of 12.16) and consistent dividend payouts, Shriram Finance continues to draw attention among NBFCs, a sector benefiting from regulatory easing by the RBI. More than 34 national and international banks now coalesce around a target price of ₹817.51, underlining consensus faith in the growth narrative. For investors looking beyond short-term technical weakness, the stock offers an attractive window into India’s credit expansion.
- Stable AUM growth of 17% YoY, reflecting sustained demand for core financing products.
- Profit after tax increased by 15% YoY, demonstrating solid business execution.
- Strong pan-India presence with a vertically integrated model across multiple lending segments.
- Active diversification into green finance, targeting ₹50 billion AUM in coming years.
- Consistent dividend payouts, with total FY2025 dividend at ₹9.90 per share.
- Recent rise in finance costs has placed short-term pressure on net margins.
- Q4 earnings slight miss versus expectations; technical indicators signal possible near-term consolidation.
- What is Shriram Finance?
- How much is Shriram Finance stock?
- Our full analysis on Shriram Finance </b>stock
- How to buy Shriram Finance stock in India?
- Our 7 tips for buying Shriram Finance stock
- The latest news about Shriram Finance
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of Shriram Finance for over three years. Each month, lakhs of users in India rely on us to analyze market trends and identify the most promising investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Shriram Finance.
What is Shriram Finance?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Indian | Operates across India, with a strong network in financial services and lending. |
| 💼 Market | NSE (National Stock Exchange of India) | Listed on NSE, ensuring liquidity and wide investor access in Indian markets. |
| 🏛️ ISIN code | INE721A01013 | Unique code identifies Shriram Finance shares for secure and easy trading. |
| 👤 CEO | Yalamati Srinivasa Chakravarti | Experienced leader focused on driving growth and expansion initiatives. |
| 🏢 Market cap | ₹113,612 crore (~$13.3 billion) | Large-cap status highlights market confidence and industry leadership among NBFCs. |
| 📈 Revenue | ₹22,835.09 crore (FY2025) | Strong annual revenue growth of nearly 16% year-on-year demonstrates business expansion. |
| 💹 EBITDA | Not explicitly stated; profit after tax: ₹8,271.61 crore (FY2025) | Profitability remains robust, but rising finance costs could impact future margins. |
| 📊 P/E Ratio (Price/Earnings) | 12.16 | Attractive valuation, lower than sector average, offering potential value for long-term investors. |
How much is Shriram Finance stock?
The price of Shriram Finance stock is on the rise this week. Currently, the stock is trading at ₹628.85, marking a 4.08% increase in the last 24 hours, but a 4.02% decline over the past week.
The company’s market capitalization stands at ₹113,612 crore, with an average daily trading volume of 8.7 million shares over the past three months. Shriram Finance currently holds a P/E ratio of 12.16 and a dividend yield of 1.49%. Its beta is 1.64, indicating above-average volatility.
Investors should note that although the stock has experienced short-term swings, its strong market position and active trading could present opportunities for those comfortable with market fluctuations.
Check out the best brokers in India!Compare brokersOur full analysis on Shriram Finance stock
After a thorough review of Shriram Finance’s latest quarterly and annual results, alongside a rigorous analysis of the stock’s three-year market performance, our proprietary algorithms have synthesized a broad spectrum of data points—including financial metrics, technical indicators, peer and sector trends. This multidimensional approach enables us to identify inflection points, underlying strengths, and forward-looking opportunities. So, why might Shriram Finance stock once again become a strategic entry point into India’s retail asset financing sector in 2025?
Recent Performance and Market Context
Despite volatility in the broader non-banking financial company (NBFC) segment, Shriram Finance has exhibited impressive resilience. As of May 2025, the stock is trading at ₹628.85, up a remarkable 21.5% over the past year, handily outperforming several sector peers. While there has been a minor -0.12% dip in the previous six months and a weekly retracement (-4.02%), the intraday surge (+4.08%) suggests dynamic market interest and the possibility of renewed momentum.
Recent events reinforce this fundamentally positive context. The company successfully raised $500 million (approx. ₹4,300 crore) through external commercial borrowings, demonstrating robust access to global capital even as domestic liquidity conditions have tightened for smaller NBFCs. A final dividend of ₹3 per share for FY2025 highlights the business’s commitment to delivering shareholder returns, with a total payout of ₹9.90 for the year post stock split—a significant sign of capital discipline.
Moreover, the macroeconomic landscape for NBFCs is favorable. The Reserve Bank of India’s recent recalibration of regulatory norms (notably relaxing certain stringent capital standards for large NBFCs) is likely to improve sector credit growth in FY2026. As economic conditions stabilize, credit demand from India’s MSME and transport sectors is expected to accelerate, benefiting Shriram Finance’s well-diversified lending book.
Technical Analysis
On the technical front, Shriram Finance is navigating a constructive consolidation phase. The share is currently positioned just below its 20-day (₹652.5) and 50-day (₹635.1) simple moving averages, reflecting subdued short-term sentiment after a recent pullback. However, prices remain firmly above the crucial 100-day (₹602.0) and 200-day (₹615.5) SMAs, suggesting the long-term uptrend is still intact—a classic setup for medium-term investors seeking an entry at a technical low.
- RSI (14-day): 45.5, in the neutral zone. There is no overbought risk and ample room for upwards movement.
- MACD: -3.9, currently below the signal line, confirming recent negative momentum, but this often prefaces a bullish reversal when strong support emerges.
- Support Levels: ₹613.73, ₹598.62, and ₹590.03 are noteworthy, with the stock having repeatedly attracted buying at these zones.
- Resistance Levels: Nearby hurdles at ₹637.43, ₹646.02, and ₹661.13. A clear break above the 50-day SMA (~₹635) could trigger accelerated gains.
This technical structure—set against strong support and recovering volumes—may usher fresh bullish flows, positioning the stock for an incipient breakout as market sentiment shifts.
Fundamental Analysis
Shriram Finance’s recent financial results underscore the depth of its earnings power and competitive edge. For FY2025, net interest income surged 15.99% YoY to ₹22,835.09 crore, while profit after tax grew by 15.04% to ₹8,271.61 crore (excluding one-off gains). Earnings per share climbed 9.85% YoY, and assets under management expanded an impressive 17.05% to ₹2,63,190 crore. These growth rates comfortably outpace a number of leading NBFC competitors.
Crucially, the company’s P/E ratio sits at a modest 12.16, offering investors an opportunity to participate in high-quality growth at a valuation that is demonstrably below the sector average. The 1.49% dividend yield adds an element of defensiveness, making this stock attractive even in yield-conscious portfolios.
Structural strengths are evident in its:
- Vertically integrated model, spanning commercial vehicles, MSME loans, gold loans, and retail finance—offering insulation from concentration risk.
- Dominant presence in pre-owned commercial vehicle financing, with deep domain expertise and superior collections infrastructure.
- Strong brand and pan-India distribution, seamlessly serving small businesses and individual entrepreneurs, a segment showing rapid post-pandemic recovery.
- Aggressive digitalization and innovation initiatives, laying the groundwork for superior cost efficiencies and customer engagement.
Despite a modest compression in net interest margin (now 8.25% vs 9.02% YoY) and increased finance costs in Q4 (+31%), the scale-driven cost leverage and diversified funding sources (including new yen and dollar bond issuances) signal robust risk management.
Volume and Liquidity
With an average daily volume of 8.7 million shares over the past three months and a market capitalization exceeding ₹113,600 crore, Shriram Finance offers market participants both liquidity and depth. The large free float (~₹84,200 crore) ensures broad institutional engagement, which typically translates to greater price stability and responsiveness to positive catalysts.
Sustained trading volumes, particularly during recent technical tests of support, have reinforced market confidence and hint at accumulating institutional positions—a positive harbinger for future price action.
Catalysts and Positive Outlook
Several prospective catalysts suggest sustained value creation for Shriram Finance:
- Green Finance Expansion: The company’s stated ambition to grow its green lending book twentyfold (targeting ₹50 billion AUM within 3-4 years) taps into one of the fastest-growing verticals in Indian finance, aligning with both regulatory priorities and global ESG capital flows.
- Overseas Fundraising: Shriram’s plans to raise a further $1 billion in foreign markets in the coming six months should optimize its balance sheet and give it strategic flexibility to ramp up lending, particularly as domestic competition intensifies.
- Favorable Regulation: The RBI’s easing of certain NBFC regulations is likely to spur risk appetite, reduce compliance costs, and unlock incremental return on equity.
- Digital Innovation: Continued digitalization of credit underwriting and collections boosts efficiency, speeds disbursal, and differentiates Shriram in an increasingly technology-driven industry.
- India’s Consumption Recovery: With rural and semi-urban spending rebounding on a base of robust government infrastructure push and vehicle sales (notably commercial and two-wheelers), Shriram’s core customer segment is gaining further economic clout.
Collectively, these factors create a uniquely aligned environment for both earnings and valuation upside.
Investment Strategies
Shriram Finance’s evolving technical and fundamental profile offers varied entry points for different investor horizons:
- Short-term (1-3 months):
- The current proximity to strong support zones (₹613–₹615) and signs of technical stabilization suggest an opportunistic entry for traders seeking a rebound toward resistance (₹635–₹646), especially if accompanied by a reversal in momentum indicators.
- Watch for volume spikes or a positive MACD crossover, both of which could indicate the next upward leg.
- Medium-term (6-12 months):
- For investors with a tactical outlook, current muted sentiment and below-average valuations set the stage for a move higher as the impact of new capital raising and regulatory tailwinds materialize.
- Tracking quarterly financials, green lending ramp-up, or major disbursements could reveal inflection points.
- Long-term (>1 year):
- The strategic push into green finance, technology adoption, and diversification across products and geographies provide clear levers for compounding AUM and profits.
- Long-term investors stand to benefit not just from potential re-rating in earnings multiples but also growing dividend payouts and sector leadership.
Those seeking to optimize timing might consider accumulating positions near technical lows or ahead of major catalysts, such as regulatory policy shifts, earnings releases, or confirmed overseas funding deals.
Is it the Right Time to Buy Shriram Finance?
In summary, Shriram Finance is set apart by its solid revenue and profit trajectory, scaled platform, and institutional-grade governance. With a 21.5% 1-year price appreciation, cost of capital advantages, and a forward-thinking management team, it embodies both growth and stability in India’s vibrant NBFC landscape.
- The stock trades at what appears to be an attractive valuation, with a P/E of 12.16, a sector-beating dividend yield, and robust liquidity metrics.
- Technical consolidation above major long-term averages enhances the appeal of an entry point at current levels, minimizing downside risk while preserving upside potential.
- Future catalysts—green finance expansion, international fundraising, digital initiatives, and improved regulatory posture—underscore a positive, sustainable outlook.
- Combined with the demonstrated ability to scale, innovate, and weather sectoral headwinds, Shriram Finance seems to represent an excellent opportunity for investors looking to align portfolios with India’s next phase of financial sector growth.
While all investment decisions should be tailored to individual objectives and risk tolerance, Shriram Finance’s positioning, momentum, and forward strategy justify renewed interest at this juncture. For those evaluating dynamic leaders in retail asset finance, the stock’s current setup suggests it may be entering a new bullish phase, supported by both technical underpinnings and multi-year growth drivers.
In the rapidly transforming landscape of Indian NBFCs, Shriram Finance may well be the catalyst for portfolios seeking resilient, long-term value and participation in the next wave of financial innovation.
How to buy Shriram Finance stock in India?
Buying shares of Shriram Finance online is both straightforward and secure when you use a regulated broker in India. Investors can typically choose between two main approaches: purchasing actual shares ("spot buying" or cash purchase), or trading Contracts for Difference (CFDs), which allow you to profit from price movements without owning the stock. Each method offers its own features and advantages depending on your financial goals. To help you decide which approach and broker is right for you, you’ll find a detailed broker comparison further down this page.
Spot Buying
Spot buying involves purchasing Shriram Finance shares outright via a stockbroker registered with the NSE and regulated by SEBI. With this method, you become a part-owner of the company and are eligible to receive dividends and voting rights. Indian brokers typically charge a fixed commission per order—ranging from ₹10 to ₹25—or a small percentage of the transaction value, plus other statutory charges.
Example
Suppose the current price of Shriram Finance is ₹628.85 per share. With an investment of $1,000 (approximately ₹83,000), you could buy about 131 shares, factoring in a ₹400 (about $5) brokerage fee.
✔️ Gain scenario:
If the price rises by 10%, your investment is now worth ₹91,300 (131 × ₹691.74).
Result: a gross gain of ₹8,300 (about $100), or +10% on your initial investment.
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on the price movement of Shriram Finance shares without actually owning the stock. CFDs are typically offered by global brokers and allow you to use leverage—amplifying both potential gains and risks. With CFDs, you’ll pay a spread (the difference between buy and sell price) and, if you hold overnight, a financing fee.
Example
You open a CFD trade equivalent to ₹83,000 ($1,000) using 5x leverage. This means you control a position size of ₹415,000 ($5,000).
✔️ Gain scenario:
If Shriram Finance’s share price climbs by 8%, your leveraged position returns 8% × 5 = 40%.
Result: a profit of ₹33,200 (about $400) on your ₹83,000 ($1,000) margin deposit (excluding fees).
Final Advice
Before investing, it’s important to compare brokers’ fee structures, investment platforms, and suitability for your chosen method (direct purchase or CFDs). Your choice should align with your investment objectives—whether you seek long-term value as a shareholder or prefer to speculate on short-term price changes with leverage. A detailed comparison of leading brokers and their features is available further down the page to help you make an informed decision.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Our 7 tips for buying Shriram Finance stock
| 📊 Step | 📝 Specific tip for Shriram Finance |
|---|---|
| Analyze the market | Evaluate Shriram Finance’s position in the NBFC sector by monitoring its strong growth in retail asset financing and tracking sector trends impacting loan demand, especially in commercial vehicles and MSME lending in India. |
| Choose the right trading platform | Select an NSE-registered Indian brokerage that provides competitive brokerage charges, robust research tools, and access to up-to-date data for Shriram Finance stock. |
| Define your investment budget | Consider allocating only a portion of your portfolio to Shriram Finance, factoring in its recent profit growth, dividend yield, and NBFC sector risks, while diversifying with other financial stocks. |
| Choose a strategy (short or long term) | For a medium to long-term approach, focus on Shriram Finance’s strong fundamentals, planned green finance expansion, and reasonable valuation; for short-term, be aware of recent technical weakness and margin pressures. |
| Monitor news and financial results | Regularly review Shriram Finance’s quarterly results, dividend announcements, RBI notifications, and updates on overseas fundraising or regulatory changes that may impact future performance. |
| Use risk management tools | Set stop-loss orders below key support levels (for example, ₹598) to manage downside risk and safeguard capital amid market volatility or unexpected sector developments. |
| Sell at the right time | Consider booking profits when the share approaches resistance levels or after strong upward movement, especially if financial results have met or exceeded market expectations, and reevaluate your position if regulatory or earnings outlook worsens. |
The latest news about Shriram Finance
Shriram Finance delivers double-digit annual growth in net profit and assets under management for FY2025. Recently released financial statements show the company’s net interest income rose by 15.99% and profit after tax by 15.04% year-on-year, with assets under management climbing 17.05% to ₹2,63,190 crore. This consistent performance highlights Shriram Finance’s strong execution in its core retail asset financing markets, especially in pre-owned commercial vehicle loans and MSME lending, cementing its leadership in India’s NBFC sector.
The company announced a significant final dividend, underscoring shareholder confidence and strong capital generation. A final dividend of ₹3 per equity share for FY2025 brings the total dividend payout for the year to ₹9.90 per share, signaling robust internal liquidity and a continued commitment to rewarding shareholders. This dividend record has provided a support level for the stock price, creating positive sentiment among Indian investors who value steady income streams, particularly in a volatile financial environment.
Shriram Finance is aggressively pursuing international funding and green finance initiatives to support expansion and sustainability objectives. The NBFC recently secured $500 million (about ₹4,300 crore) through external commercial borrowing and is exploring yen-denominated fundraises to diversify its resource base. Looking ahead, management targets raising an additional $1 billion from overseas markets within the next six months and is aiming for ₹50 billion in assets under management in its green lending vertical over 3–4 years. Such developments reflect proactive capital management and a strategic pivot towards sustainable finance, positioning the company as a forward-looking lender in India.
Regulatory tailwinds from the Reserve Bank of India are anticipated to benefit Shriram Finance and the NBFC sector at large. The RBI’s recent partial reversal of strict lending norms for NBFCs is expected to revive sectoral credit growth and ease regulatory pressure, which has been a source of concern for industry participants over the past year. This regulatory relaxation is viewed as a constructive external development, potentially improving margin prospects and supporting lending activity, especially for established players like Shriram Finance with a pan-India footprint.
Despite short-term margin pressures, technicals show strong support, and analyst consensus implies substantial stock price upside. While the recent quarter reflected a 31% rise in finance costs and a net interest margin slightly below prior levels, technical analysis reveals the stock is finding support at ₹613–₹615, above its 100-day and 200-day moving averages. Importantly, with a consensus target price of ₹817.51—about 30% above current levels—and a favorable P/E ratio of 12.16, Shriram Finance retains positive long-term investment appeal in the Indian market, with institutional investors maintaining considerable ownership.
FAQ
What is the latest dividend for Shriram Finance stock?
Shriram Finance currently pays a dividend. For the financial year 2025, the total dividend declared per share was ₹9.90, which includes a final dividend of ₹3 per share. The payment was made after adjusting for a stock split. With a dividend yield of 1.49% based on current prices, the company has maintained a consistent distribution policy, reflecting its ongoing profitability even as it pursues growth initiatives like green finance.
What is the forecast for Shriram Finance stock in 2025, 2026, and 2027?
The projected share price for Shriram Finance is ₹817.51 by the end of 2025, ₹943.28 by the end of 2026, and ₹1,257.70 by the end of 2027. These optimistic projections draw confidence from the company's solid asset growth, diversification into green lending, and supportive sector trends such as regulatory easing for NBFCs—factors likely to sustain positive momentum over the next few years.
Should I sell my Shriram Finance shares?
Based on the current fundamentals, it may be more appropriate for investors to hold onto Shriram Finance shares. The company demonstrates strategic resilience, posting strong growth in assets under management and consistent profitability. Its focus on underserved sectors and expansion into green finance offers promising mid- to long-term growth prospects, while the stock trades at a reasonable valuation. Holding could suit investors seeking exposure to India’s robust financial sector.
How are dividends and capital gains from Shriram Finance stock taxed in India?
Dividends from Shriram Finance are taxable in the hands of shareholders at their applicable slab rates, as India has abolished Dividend Distribution Tax (DDT). A 10% tax is also withheld at source if annual dividend income exceeds ₹5,000 per company. Capital gains from selling Shriram Finance shares are taxed at 15% (short-term, held for up to one year) or 10% (long-term, held more than one year, on gains above ₹1 lakh). Always verify current tax rules or consult a tax advisor for your specific situation.
What is the latest dividend for Shriram Finance stock?
Shriram Finance currently pays a dividend. For the financial year 2025, the total dividend declared per share was ₹9.90, which includes a final dividend of ₹3 per share. The payment was made after adjusting for a stock split. With a dividend yield of 1.49% based on current prices, the company has maintained a consistent distribution policy, reflecting its ongoing profitability even as it pursues growth initiatives like green finance.
What is the forecast for Shriram Finance stock in 2025, 2026, and 2027?
The projected share price for Shriram Finance is ₹817.51 by the end of 2025, ₹943.28 by the end of 2026, and ₹1,257.70 by the end of 2027. These optimistic projections draw confidence from the company's solid asset growth, diversification into green lending, and supportive sector trends such as regulatory easing for NBFCs—factors likely to sustain positive momentum over the next few years.
Should I sell my Shriram Finance shares?
Based on the current fundamentals, it may be more appropriate for investors to hold onto Shriram Finance shares. The company demonstrates strategic resilience, posting strong growth in assets under management and consistent profitability. Its focus on underserved sectors and expansion into green finance offers promising mid- to long-term growth prospects, while the stock trades at a reasonable valuation. Holding could suit investors seeking exposure to India’s robust financial sector.
How are dividends and capital gains from Shriram Finance stock taxed in India?
Dividends from Shriram Finance are taxable in the hands of shareholders at their applicable slab rates, as India has abolished Dividend Distribution Tax (DDT). A 10% tax is also withheld at source if annual dividend income exceeds ₹5,000 per company. Capital gains from selling Shriram Finance shares are taxed at 15% (short-term, held for up to one year) or 10% (long-term, held more than one year, on gains above ₹1 lakh). Always verify current tax rules or consult a tax advisor for your specific situation.
