Shriram Finance Ltd is one of India’s largest retail asset financing non-banking financial companies (NBFCs), offering a wide range of loans, including commercial vehicle finance, SME lending, tractor loans, gold loans, personal loans, and working capital facilities. As the flagship company of the Shriram Group, it has built a strong presence across urban and rural India with over 1,750 branches and a vast partner network. Backed by robust asset quality, consistent profit growth, and strong institutional ownership, Shriram Finance remains a key player in India’s financial inclusion story. This article provides a fact-based outlook and realistic share price targets for each year from 2026 to 2030.
Business: Retail asset financing—CVs, SMEs, tractors, gold, personal loans, and more
AUM (Advances): ₹2,45,392.79 Cr (as of latest data)
Ownership: Promoter holding at 25.38%; majority stake held by institutions (FII + DII = 68.52%)
Listed: Yes – on BSE (500198) and NSE (SHRIRAMFIN)
Clarifications:
Is Shriram Finance a good share to buy? It’s a high-quality NBFC with strong fundamentals, suitable for long-term investors seeking exposure to India’s credit growth—but not ideal for short-term traders due to interest rate sensitivity.
What is the profit in 2025? Net profit (TTM) is ₹9,761 Cr, with 35.75% YoY profit growth.
Has it announced a split or bonus? No recent stock split or bonus issue. The last bonus was in 2018 (1:1).
Can we trust Shriram Finance? Yes—it has a 40+ year track record, strong governance, and transparent reporting. Credit ratings remain stable (CRISIL AA+/Stable).
Sun Pharma price target? Not relevant—this analysis covers Shriram Finance, not Sun Pharma.
Shriram Finance: Key Financial Snapshot
Metric
Value
Market Capitalization
₹1,88,619.21 Cr
Current Share Price
₹1,002
52-Week High / Low
₹1,026 / ₹493
P/E (TTM)
20.67
P/B (TTM)
3.00
Book Value (TTM)
₹334.45
EPS (TTM)
₹48.49
ROE
18.64%
ROCE
11.86%
Dividend Yield
0.99%
Net Profit (TTM)
₹9,761 Cr
Operating Revenue
₹41,834.42 Cr
Sales Growth (YoY)
19.65%
Profit Growth (YoY)
35.75%
Shareholding Pattern
Category
Holding (%)
Foreign Institutions (FII)
47.19%
Domestic Institutions (DII)
21.33%
Promoters
25.38%
Public (Retail)
6.10%
Others
0%
Note: High institutional ownership reflects strong market confidence.
Rationale: Strong Q3 FY26 results and AUM crossing ₹2.45 lakh Cr support near-term upside. Current P/E of 20.7x is reasonable for a high-growth NBFC.
Shriram Finance Share Price Target 2027
Year
Target 1
Target 2
2027
₹1,160
₹1,320
Rationale: Expected benefit from rural credit revival, SME lending expansion, and digital underwriting efficiency.
Shriram Finance Share Price Target 2028
Year
Target 1
Target 2
2028
₹1,240
₹1,450
Rationale: By 2028, operating leverage from scale could boost ROE above 20%. Stable cost of funds supports margin resilience.
Shriram Finance Share Price Target 2029
Year
Target 1
Target 2
2029
₹1,320
₹1,580
Rationale: Long-term play on India’s credit-to-GDP gap and rising formalization of lending. Diversification into new loan segments adds growth vectors.
Shriram Finance Share Price Target 2030
Year
Target 1
Target 2
2030
₹1,400
₹1,720
Rationale: The upper end assumes sustained 20%+ ROE, low credit costs, and market leadership consolidation. Even at ₹1,720, P/E would be ~22x—justified for quality.
Strengths vs Risks
✅ Strengths
Market leader in retail asset financing
Consistent 35%+ profit growth and 18.6% ROE
Strong institutional backing (FII + DII >68%)
Diversified loan book reduces sector concentration risk
⚠️ Risks
Interest rate volatility impacts NIMs
Asset quality sensitivity to economic slowdowns
Regulatory oversight by RBI (capital adequacy, liquidity norms)
Low dividend yield (0.99%) limits income appeal
Investment Suitability
Factor
Assessment
Risk Profile
Moderate (large-cap NBFC)
Time Horizon
Long-term (5+ years)
Volatility
Moderate
Dividend/Income
Low but consistent (0.99% yield)
Ideal Investor
Growth-focused investor bullish on India’s credit cycle and financial inclusion
FAQs
Yes—for long-term portfolios. Its strong execution, scale, and sector tailwinds make it a reliable compounder.
Net profit (TTM) is ₹9,761 crore, with EPS of ₹48.49 and 35.75% YoY growth.
No recent split or bonus. The last bonus issue was in 2018 (1:1).
Yes—it has a proven track record, transparent disclosures, strong governance, and stable credit ratings.
This question is unrelated. This analysis covers Shriram Finance, not Sun Pharmaceutical Industries Ltd.
Final Verdict
Shriram Finance Ltd is a high-quality, scalable NBFC well-positioned to benefit from India’s deepening credit penetration. While it carries typical NBFC risks (interest rates, asset quality), its diversified model, institutional trust, and consistent profitability make it a solid long-term holding. Our 2026–2030 price targets (₹1,080–₹1,720) reflect steady, sustainable growth—not speculative upside. Investors should consider accumulating on dips with a 5-year horizon.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
