Shriram Finance Limited (SHRIRAMFIN) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Shriram Finance Limited stock ₹1,309, price ₹964, upside +35.8%, quality 55 out of 100. Rating: undervalued. Calculated from audited financials with 13 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range ₹174.51 – ₹1,141 · fair‑value band ₹415.35 – ₹2,268 · the ₹964.00 price screens below the ₹1,309 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Shriram Finance Limited, a non-banking finance company, provides financing services in India.
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It offers fixed and recurring deposits; commercial vehicle loans for commercial goods vehicles, passenger commercial vehicles, tractors and farm equipment, and construction equipment; two-wheeler, gold, used car loan, and personal loans; and green finance services.
The company also provides business loans, such as MSME loans; working capital loans, including tyre, tax, fuel, toll financing, repair/top-up loans, fuel finance, and challan discounting; motor insurance, including four-wheeler, two-wheeler, passenger and goods carrying vehicle insurance products; non motor insurance products, such as personal accident, shri criti care, and home insurance; and life insurance products comprising savings, retirement, child, protection plans, as well as recharges, including mobile recharge, mobile postpaid, landline postpaid, DTH, and FASTag recharge services.
In addition, it offers utilities and bills payment services, such as electricity, LPG gas, gas, broadband postpaid, water, and cable tv; financial services and taxes comprising credit card, loan repayment, insurance, municipal services, and recurring deposit; and other services, such as hospital and pathology, housing society, clubs and associations, and education fees.
It serves first time buyers, small road transport operators, individuals, micro, small, and medium enterprises (MSMEs), salaried professionals, and self-employed individuals.
The company was formerly known as Shriram Transport Finance Company Limited and changed its name to Shriram Finance Limited in November 2022. Shriram Finance Limited was incorporated in 1979 and is based in Mumbai, India.
Stock analysis
Shriram Finance Limited (SHRIRAMFIN) currently trades at ₹964.00, while our model-based Fair Value estimate is ₹1,309, implying the stock looks roughly 26% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹1,309 per share, and 4 of the 13 models we run sit above the ₹964.00 price.
Bear case: the Asset-Based group reads lowest at ₹183.35, and 9 of the 13 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹415.35 (bear) to ₹2,268 (bull), the price of ₹964.00 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 55/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Shriram Finance Limited reported revenue of ₹482B in FY2026 versus ₹193B in FY2022, a compound +25.7%/yr. Reported net income was ₹100B in FY2026, compounding +38.5%/yr from FY2022.
Key figures
Market cap ₹1.8T (≈ $19.2B) Large · P/E ratio 16.1 · P/S ratio 7.42 · EPS (TTM) ₹59.90 · Dividend yield 1.3% · Net margin 51.9% · Return on equity 14.8% · Return on assets (EBIT) 4.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 64 out of 100 (medium confidence).
What moves the price
The share trades about 16% below its 52-week high and 23% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −1% fair-value upside, at 36%, SHRIRAMFIN screens cheaper than that median.
Fair Value models
Bear₹415.35Fair Value ₹1,309Bull₹2,268
Price ₹964.00 · Upside +35.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹28.57 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+18.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+23.6%
Start year 2021 (pandemic). Over 10 years: +16.7% a year
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+26.8%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+22.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+21.1%
Dividend (yield on the price)1.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.21.1% vs 18.0%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.21% → 31%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+7.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +3.6% a year for the price and +0.6% for the forecasts.
AI conclusion: Scale and margins deliver stability in credit services, yet the sector's competitiveness and commoditized operations leave few durable barriers.
Main risk: Broader rural stress and drought-hit regions could pressure asset quality and slow AUM growth in its core lending segments.
Shriram Finance delivered strong profit growth in the latest quarter thanks to rising interest income and lower funding costs. At the same time management trimmed its full-year AUM growth target because of caution in drought-hit regions and broader rural stress. Our models currently see the business as undervalued. Will the temporary pressures on asset quality prove short-lived enough for growth to reaccelerate, or will they weigh on returns longer than expected?
Compare Shriram Finance Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Credit Services · 286 stocks
Beats the industry median on 7/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score55 · Above median
Fair Value upside+35.8% · Above median
Profitability
Return on equity (12 months)14.8% · Above median
Return on assets3.1% · Above median
Net margin (12 months)51.9% · Top 25%
Operating margin (12 months)72.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)37.9% · Top 25%
Dividend yield (12 months)1.3% · Below median
Balance sheet
Debt / equity1.94× · Above median
Valuation Multiplesvs Credit Services median · lower = cheaper
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Is Shriram Finance Limited (SHRIRAMFIN) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of ₹1,309 versus a price of ₹964.00, about +36% upside (undervalued).
What is the fair value of SHRIRAMFIN?
Our model-based fair value for Shriram Finance Limited is ₹1,309 (as of Nov 5, 2026), built from audited fundamentals. The current price: ₹964.00.
What is the quality score of SHRIRAMFIN?
Shriram Finance Limited has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Shriram Finance Limited (SHRIRAMFIN)?
Our model-based price target is the fair value of ₹1,309 (as of Nov 5, 2026) from 13 valuation models. Cautious scenario ₹415.35, optimistic scenario ₹2,268. It is a calculation from audited fundamentals, not an analyst target.
What is the Shriram Finance Limited stock forecast for 2026?
Our models put fair value at ₹1,309, about +36% upside versus a price of ₹964.00 (undervalued). Cautious scenario ₹415.35, optimistic scenario ₹2,268. The calculation is refreshed regularly with new filings.
What is the revenue of Shriram Finance Limited (SHRIRAMFIN)?
Shriram Finance Limited reported trailing-twelve-month revenue of about ₹244B (latest available figure, as of Nov 5, 2026).
Does Shriram Finance Limited pay a dividend?
Shriram Finance Limited currently shows a dividend yield of 1.30% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Shriram Finance Limited (SHRIRAMFIN)?
For today's price to be fair in a discounted-cash-flow model, Shriram Finance Limited would have to grow free cash flow by +7.9 % per year for five years (discount rate 10.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +23.6 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of SHRIRAMFIN use?
Our models discount Shriram Finance Limited at 10.7 %: a base by market capitalisation (large), damped by beta 0.61, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Shriram Finance Limited that is +7.9 % per year a year over ten years, using the same discount rate (10.7 %) and the same formula as our fair value.
How much growth has Shriram Finance Limited (SHRIRAMFIN) delivered so far?
Over the past 5 years revenue at Shriram Finance Limited grew +23.6 % a year. The price currently implies +7.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Shriram Finance Limited (SHRIRAMFIN) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Shriram Finance Limited (+7.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Shriram Finance Limited (SHRIRAMFIN)?
The free-cash-flow yield on the price is 10.32 %: that much free cash flow Shriram Finance Limited produces per unit of market value. When it exceeds the discount rate of our models (10.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Shriram Finance Limited (SHRIRAMFIN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Shriram Finance Limited it is ₹1,309 per share (as of Nov 5, 2026), against a price of ₹964.00. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Shriram Finance Limited stock overvalued or undervalued in 2026?
As of Nov 5, 2026, SHRIRAMFIN trades below its calculated fair value: price ₹964.00, fair value ₹1,309, a gap of about +36% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SHRIRAMFIN?
No. The price is what the market pays today (₹964.00); the fair value is what the company's own numbers justify (₹1,309). For Shriram Finance Limited the two are ₹345.01 per share apart. That gap is exactly why we show both numbers side by side.
How much is Shriram Finance Limited worth?
The market values Shriram Finance Limited at about ₹1.8T (market capitalisation, as of Nov 5, 2026). Per share that is ₹964.00; our models calculate a fair value of ₹1,309 per share.
What do the bullish and bearish scenarios say about SHRIRAMFIN?
Our models span a range for Shriram Finance Limited: cautious scenario ₹415.35, base ₹1,309, optimistic ₹2,268 per share (as of Nov 5, 2026, price ₹964.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SHRIRAMFIN?
Shriram Finance Limited trades at a price-to-earnings ratio of 16.1 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹1,309 is built from several models across several years. Other multiples: P/B 2.8, P/S 7.4, EV/EBITDA 21.5.
How solid is the balance sheet of Shriram Finance Limited (SHRIRAMFIN)?
Balance-sheet figures for Shriram Finance Limited (as of Nov 5, 2026): return on equity 14.8%, debt of 1.94 per unit of equity. They feed the Quality Score of 55/100, which measures business quality independently of the share price.
How far is SHRIRAMFIN from its 52-week high?
Shriram Finance Limited trades at ₹964.00, about 16% below its 52-week high of ₹1,141 and 23% above the low of ₹783.27 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹1,309 is for.
Which stocks are comparable to Shriram Finance Limited?
From the same area (Financial Services) we also value Visa Inc, Mastercard Incorporated, American Express Company, Capital One Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Shriram Finance Limited stock attractive at the current price?
The data as of Nov 5, 2026: price ₹964.00, calculated fair value ₹1,309 (+36%), Quality Score 55/100, from 13 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SHRIRAMFIN calculated?
We run Shriram Finance Limited through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹1,309, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Shriram Finance Limited currently trades 26% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Shriram Finance Limited (SHRIRAMFIN)?
The closing price on Nov 5, 2026 was ₹964.00. Our model-based fair value is ₹1,309, about +36% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Shriram Finance Limited right now?
The model range is unusually wide (₹415.35 to ₹2,268). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Shriram Finance Limited (SHRIRAMFIN) come from?
Earnings per share at Shriram Finance Limited grew +19.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +10.9 %, EBIT margin +7.1 %, tax rate +1.7 %, residual (interest, one-offs) −1.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Shriram Finance Limited
How large is the market capitalisation of Shriram Finance Limited (SHRIRAMFIN)?
The market capitalisation of Shriram Finance Limited is ₹1.8T (≈ $19.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Shriram Finance Limited (SHRIRAMFIN)?
The price-to-sales ratio of Shriram Finance Limited is 7.42 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Shriram Finance Limited (SHRIRAMFIN)?
Earnings per share at Shriram Finance Limited are ₹59.90 (price ÷ EPS = P/E 16.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Shriram Finance Limited (SHRIRAMFIN)?
The dividend yield of Shriram Finance Limited is 1.3% (payout 20.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Shriram Finance Limited (SHRIRAMFIN)?
The net margin of Shriram Finance Limited is 51.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Shriram Finance Limited (SHRIRAMFIN)?
The return on equity (ROE) of Shriram Finance Limited is 14.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Shriram Finance Limited (SHRIRAMFIN)?
On an EBIT basis the return on assets of Shriram Finance Limited is 4.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Shriram Finance Limited (SHRIRAMFIN)?
The operating margin of Shriram Finance Limited is 72.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Shriram Finance Limited (SHRIRAMFIN)?
Revenue at Shriram Finance Limited is growing +37.9% versus a year earlier (3y avg +17.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Shriram Finance Limited (SHRIRAMFIN)?
Earnings per share at Shriram Finance Limited are growing +27.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Shriram Finance Limited (SHRIRAMFIN) carry?
The net debt of Shriram Finance Limited is ₹1.7T (fiscal year 2026, ≈ 9.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 5, 2026