Shriram Finance Limited is India’s leading retail asset financing non-banking financial company (NBFC), formed through the merger of Shriram Transport Finance Company (STFC) and Shriram City Union Finance in 2022. Headquartered in Chennai, it offers a diversified portfolio across commercial vehicle financing, SME loans, personal loans, gold loans, and two-wheeler finance. With over 1,758 branches and a strong presence in semi-urban and rural India, Shriram Finance has emerged as a dominant player in the organised NBFC space. As of January 2026, it delivers robust profit growth, maintains healthy asset quality, and trades at a reasonable valuation relative to peers. This article provides a data-driven outlook on the Shriram Finance share price target 2026–2030.
Shriram Finance: Company Overview
- Founded: 1979 (as STFC); merged entity operational since 2022
- Managing Director: Mr Yalamanchili Srinivasa Chakravarti
- NSE Symbol: SHRIRAMFIN
- Core Business Segments:
- Commercial Vehicle Loans (45%)
- SME & Business Loans (25%)
- Personal & Gold Loans (20%)
- Two-Wheeler & Other Retail Finance (10%)
- Market Position: #1 in CV financing; among top 3 retail NBFCs by AUM
The company benefits from deep grassroots penetration, disciplined underwriting, and a low-cost liability franchise. It maintains a CASA-like model through customer deposits and co-lending partnerships.
Shriram Finance: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹996 |
| Market Capitalization | ₹1,87,312 Cr |
| No. of Shares Outstanding | 188.15 Cr |
| 52-Week High / Low | ₹1,020 / ₹680 |
| P/E Ratio (TTM) | 18.41 |
| P/B Ratio | 3.10 |
| EPS (TTM) | ₹54.06 |
| Book Value (TTM) | ₹321.04 |
| ROE | 18.64% |
| ROCE | 11.86% |
| Dividend Yield | 0.99% |
| Face Value | ₹2 |
| Operating Revenue | ₹41,834.42 Cr |
| Net Profit | ₹9,761 Cr |
| Promoter Holding | 25.39% |
| Sales Growth (YoY) | 19.65% |
| Profit Growth (YoY) | 35.75% |
Shriram Finance Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹1,050 – ₹1,160 |
| 2027 | ₹1,120 – ₹1,270 |
| 2028 | ₹1,190 – ₹1,390 |
| 2029 | ₹1,260 – ₹1,520 |
| 2030 | ₹1,330 – ₹1,660 |
Shriram Finance Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹1,050 | ₹1,160 |
Shriram Finance reported 35.75% YoY profit growth in FY2025, supported by strong disbursements in CV and SME segments and stable asset quality (Gross NPA: ~1.8%). Trading at a P/E of 18.41x and P/B of 3.1x, the stock appears fairly valued for a high-growth NBFC. A 2026 target range of ₹1,050–₹1,160 assumes continued credit expansion and no major macro disruptions.
Shriram Finance Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹1,120 | ₹1,270 |
If the company sustains 25–30% earnings growth and benefits from co-lending scale-up, EPS could reach ₹58–₹62 by FY27. Assuming a P/E of 18.5–19x, the 2027 target range of ₹1,120–₹1,270 is justified.
Shriram Finance Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹1,190 | ₹1,390 |
By 2028, benefits from digital lending, rural penetration, and fee income diversification should reflect in margins. A P/E of 19–20x on projected EPS of ₹61–₹66 supports the ₹1,190–₹1,390 band.
Shriram Finance Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹1,260 | ₹1,520 |
Long-term tailwinds include India’s credit gap, formalisation of informal lending, and rising MSME demand. If competition doesn’t erode pricing, EPS could reach ₹65–₹70 by FY29. At a P/E of 19–21x, the 2029 target is ₹1,260–₹1,520.
Shriram Finance Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹1,330 | ₹1,660 |
Over a five-year horizon, Shriram Finance’s appeal lies in credit inclusion leadership + capital efficiency—not just volume. If ROE holds above 18% and dividends resume consistently, investor confidence will strengthen. A terminal P/E of 20–22x on FY30 EPS (~₹67–₹75) justifies the ₹1,330–₹1,660 range.
Shriram Finance: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Foreign Institutional Investors (FII) | 49.58% |
| Domestic Institutional Investors (DII) | 18.68% |
| Promoters | 25.39% |
| Public & Others | 6.35% |
High institutional ownership (68.26%) ensures liquidity and analyst coverage. Promoter holding is stable post-merger.
Shriram Finance: Strengths vs Risks
Strengths:
- Market leader in commercial vehicle financing
- Strong ROE (18.64%) and consistent 35%+ profit CAGR
- Deep rural/semi-urban distribution network
- Healthy capital adequacy (CAR: ~22%)
Risks:
- Exposure to monsoon-linked repayment cycles
- Rising competition from banks and fintech NBFCs
- Contingent liabilities of ₹1.2 lakh Cr require monitoring
- Minimal dividend yield (0.99%) limits income appeal
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate to High |
| Ideal Time Horizon | 5+ years |
| Volatility | Higher than PSU banks; lower than small-cap NBFCs |
| Dividend/Income Potential | Low yield (0.99%) but consistent payouts |
| Best For | Growth investors seeking exposure to India’s credit expansion story |
FAQs
Is Shriram Finance a good share to buy?
Yes—for long-term portfolios focused on India’s financial inclusion and NBFC growth. At P/E of 18.4x and ROE of 18.6%, it offers reasonable value relative to fundamentals.
What is the history of Shriram Finance’s stock price?
Post-merger (2022), the stock surged from ₹600 to ₹1,020 by late 2025—a CAGR of ~28%. It has outperformed Nifty Financial Services due to consistent earnings and clean execution.
How strong is Shriram Finance?
Very strong operationally:
Profit CAGR (5Y): 27%
ROE: 18.6%
Gross NPA: ~1.8% (best-in-class for NBFCs)
Advances: ₹2.45 lakh Cr (largest retail NBFC)
What is the target price of Shriram Finance in 2026?
Based on fundamentals and sector trends, the Shriram Finance share price target for 2026 is ₹1,050 – ₹1,160.
Final Verdict
Shriram Finance has successfully integrated its legacy entities into a scalable, high-return NBFC platform. While not immune to economic cycles, its grassroots model and disciplined risk management make it a compelling long-term holding.
Our Shriram Finance share price target 2026–2030 (₹1,050 to ₹1,660) reflects steady earnings growth, moderate multiple expansion, and sustained investor confidence. Upside is supported by credit demand; downside is limited by asset quality and scale.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Shriram Finance Consolidated Page (FY2025 + TTM)
- Finology Ticker – SHRIRAMFIN Financials & Analysis
- Groww.in – Shriram Finance Stock Profile
- Shriram Finance Investor Presentation (Q3 FY26, Jan 2026)
- RBI Guidelines on NBFC Regulation and Capital Adequacy
