Shriram Finance Limited
Shriram Finance Limited Fundamental Analysis
Shriram Finance Limited (SHRIRAMFIN.NS) shows moderate financial fundamentals with a PE ratio of 22.33, profit margin of 19.90%, and ROE of 16.14%. The company generates $459.8B in annual revenue with strong year-over-year growth of 19.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SHRIRAMFIN.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSHRIRAMFIN.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSHRIRAMFIN.NS trades at attractive valuation levels.
Growth Score
ExcellentSHRIRAMFIN.NS delivers strong and consistent growth momentum.
Financial Health Score
WeakSHRIRAMFIN.NS carries high financial risk with limited liquidity.
Profitability Score
ModerateSHRIRAMFIN.NS maintains healthy but balanced margins.
Key Financial Metrics
Is SHRIRAMFIN.NS Expensive or Cheap?
P/E Ratio
SHRIRAMFIN.NS trades at 22.33 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SHRIRAMFIN.NS's PEG of -3.07 indicates potential undervaluation.
Price to Book
The market values Shriram Finance Limited at 3.37 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.96 times EBITDA. This is generally considered low.
How Well Does SHRIRAMFIN.NS Make Money?
Net Profit Margin
For every $100 in sales, Shriram Finance Limited keeps $19.90 as profit after all expenses.
Operating Margin
Core operations generate 32.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.14 in profit for every $100 of shareholder equity.
ROA
Shriram Finance Limited generates $3.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shriram Finance Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Shriram Finance Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
SHRIRAMFIN.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SHRIRAMFIN.NS Stacks Against Its Sector Peers
| Metric | SHRIRAMFIN.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.33 | 19.09 | Worse (Expensive) |
| ROE | 16.14% | 843.00% | Weak |
| Net Margin | 19.90% | 3730.00% | Weak |
| Debt/Equity | 2.78 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.00 | 661.68 | Weak Liquidity |
| ROA | 3.06% | -21651.00% (disorted) | Weak |
SHRIRAMFIN.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shriram Finance Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.27%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
141.44%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-785.66%
Industry Style: Value, Dividend, Cyclical
Declining