Shriram Finance Stock Price Analysis and Quick Research Report. Is Shriram Finance an attractive stock to invest in?
Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.
Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements.
Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Shriram Finance.
Key Financials -
- Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Shriram Finance is Rs 9761 Cr. and the compounded growth of profit in the past 3 years is 53.3264581346774%. The PAT margin of Shriram Finance is 23.3325%.
- EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Shriram Finance , the EPS grew by 35.6444% YOY.
Financial Ratios -
- Return on Equity (ROE): Shriram Finance has a average ROE track record. The ROE of Shriram Finance is at 18.6393% for the latest year.
- P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Shriram Finance is worth at the current levels at Rs 596.75. Shriram Finance is trading at a current P/E ratio of 12.6346 and the average historical P/E for the last 5 years was 11.73298.
- P/B ratio can be one of the best metrics to value such companies. Currently, Shriram Finance is trading at a P/B of 1.92217811851054. The average historical P/B for the last 5 years was 1.59366. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.
One can find all the Financial Ratios of Shriram Finance in Ticker for free. Also, one can get the intrinsic value of Shriram Finance by using Valuation Calculators, which are available with a Finology ONE subscription.
Shriram Finance FAQs
Q1. What is Shriram Finance share price today?
Ans: The current share price of Shriram Finance is Rs 596.75.
Q2. What is the market capitalisation of Shriram Finance?
Ans: Shriram Finance has a market capitalisation of Rs 112243.692913275 Cr., calculated based on its latest share price.
Q3. What are the P/E and P/B ratios of Shriram Finance?
Ans: The PE ratio of Shriram Finance is 11.2964992683541 and the P/B ratio of Shriram Finance is 1.92217811851054, showing how the stock is valued against its earnings and book value.
Q4. What is the 52-week high and low of Shriram Finance share?
Ans: The 52-week high share price of Shriram Finance is Rs 730.45, and the 52-week low share price of Shriram Finance is Rs 493.35.
Q5. Does Shriram Finance pay dividends?
Ans: Currently, Shriram Finance pays dividends. Dividend yield of Shriram Finance is around 1.6595%.
Q6. What are the face value and book value of Shriram Finance shares?
Ans: The face value of Shriram Finance shares is Rs 2, while the book value per share of Shriram Finance is around Rs 310.4551. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.
Q7. What are the ROE and ROCE of Shriram Finance?
Ans: The ROE of Shriram Finance is 18.6393% and ROCE of Shriram Finance is 11.8648%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.
Q8. Is Shriram Finance a good buy for the long term?
Ans: The Shriram Finance long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.
Q9. Is Shriram Finance undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Shriram Finance appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.
Q10. How to check Shriram Finance’s financials?
Ans: You can review Shriram Finance’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.