financial_services
Shriram Finance
SHRIRAMFIN · Nifty 50
₹1,007.5
Price 2026-06-17
At a Glance
Fundamental
87/100
STRONG
Trust
90/100
Verification
Coverage
89/100
HIGH
Quick Take
Shriram Finance scores 87/100 on fundamentals (strong). Shriram Finance: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 87/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 14.9% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 14.94% is moderate leverage-driven and stable. Net margin of 38.0% × asset turnover of 0.08x × leverage of 4.9x. Low asset turnover is normal for banks.
What This Means
Net margin of 38.0% means the company keeps ₹38.0 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.08x means the company generates ₹0.08 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 4.9x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
100.0%
Operating
%
Net
38.0%
Financial Health
Peer Comparison
Shriram Finance is compared against 10 peers in the financial_services sector.
Bank Metrics
Return on Assets
3.07%
Benchmark: >1%
Efficiency Ratio
62.0%
Lower is better
Asset Growth
+9.4%
Year over year
PB Ratio
3.4x
Price to book
ROA of 3.07% is strong (benchmark: >1% for banks). Strong asset utilization. P/B of 3.41x — trading above book. Premium valuation — market pricing in high growth expectations.
Key Watchpoints
Breaks above ₹1058 (+5%)
Trend reversal confirmation
Breaks below ₹957 (-5%)
Further downside risk
PE reverts to 5Y median of 16.6
Valuation normalization
Financial_Services sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
OCF is only -1.3x net income. Profit not converting to cash — aggressive accounting possible.
Working capital is consuming significant cash. Operational efficiency declining.
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes