Shriram Finance Limited’s share price is experiencing notable activity in the Indian stock market. The stock is trading at ₹2,958.45 on the Bombay Stock Exchange (BSE) and ₹2,958.40 on the National Stock Exchange (NSE).
Recent Performance
In the past 24 hours, Shriram Finance’s share price has decreased by approximately 0.38%.
Over the last week, the stock has declined by 1.69%. However, on a yearly basis, it has shown a significant increase of 31.50%.
Market Capitalization and Valuation
The company’s current market capitalization stands at around ₹1.11 trillion. The stock’s price-to-earnings (P/E) ratio is 13.8, indicating the market’s valuation relative to its earnings. The book value per share is ₹1,393, and the dividend yield is 1.51%.
Financial Highlights
Shriram Finance has demonstrated strong financial performance in recent quarters. For the quarter ending September 2024, the company reported revenue of ₹10,090 crore, up from ₹9,592 crore in the previous quarter. Net profit for the same period was ₹2,903 crore, showing consistent growth.
Analyst Recommendations
Analysts have mixed opinions on Shriram Finance’s stock. Approximately 81% recommend buying, 16% suggest holding, and 3% advise selling. These insights are aggregated from 32 analysts by Refinitiv’s Institutional Brokers’ Estimate System (I/B/E/S).
Industry Comparison
Within the finance sector, Shriram Finance’s P/E ratio of 13.8 is below the industry average of 18.49, suggesting it may be undervalued compared to peers. Competitors like Bajaj Finance and Cholamandalam Investment & Finance Company have higher P/E ratios of 29.63 and 27.85, respectively.
Investor Considerations
Investors should note that Shriram Finance has a debt-to-equity ratio of 3.97, indicating a higher reliance on debt financing. The return on equity (ROE) stands at 15.34%, reflecting efficient utilization of shareholder funds. The company has maintained a healthy dividend payout ratio of 21.6%, providing consistent returns to shareholders.