Shriram Finance soars 6%, surpasses PNB, Chola Investment in market-cap

In the past one month, Shriram Finance stock has outperformed the market by surging 23 per cent, as compared to 3.3 per cent rise in the BSE Sensex.

Shares price of Shriram Finance today

 

Shares of Shriram Finance hit an all-time high of ₹794.70, as the stock rallied 6 per cent on the BSE in Monday’s intra-day trade in otherwise subdued market on steady September quarter (Q2FY26) earnings. At 10:19 AM; the BSE Sensex was down 0.13 per cent at 83,828.

 

In the past one month, the stock price of this non banking finance company (NBFC) has gained 23 per cent, as compared to 3.3 per cent rise in the BSE Sensex.

 

Shriram Finance surpasses PNB, Chola Investment in market cap ranking

 

Shriram Finance has surpassed the public sector bank Punjab National Bank (PNB) and its peer Cholamandalam Investment and Finance Company in market capitalisation (market-cap), data shows.

 

Currently, Shriram Finance has a market cap of ₹1.49 trillion, the BSE data shows. Chola Investment and PNB, on the other hand, have market-cap of ₹1.47 trillion and ₹1.43 trillion respectively, data shows.

 

What’s driving Shriram Finance stock price?

 

Shriram Finance is the flagship company of the Shriram group which has significant presence in consumer finance, life insurance, general insurance, housing finance, stock broking and distribution businesses. Shriram Finance is one of India’s largest retail asset financing NBFC with Assets under Management (AUM) above ₹2.81 trillion.

 

Shriram Finance reported steady performance in Q2FY26, disbursement growth and asset quality remained broadly steady. Disbursements grew by 10.2 per cent year-on-year (YoY) to ₹49,019 crore, while AUM increased by 15.7 per cent YoY to ₹2.8 trillion. Net interest income (NII) rose 11.7 per cent YoY ₹6,266 crore, with margins inching up 8 bps quarter-on-quarter (QoQ) amid utilization of excess liquidity. 

 

Operational efficiency continued to remain strong with credit cost stable at ~1.9 per cent resulting in 11.4 per cent YoY growth in earnings at ₹2,307 crore. While asset quality remained stable, marginal stress accretion in CE, PL and SME book led to GNPA being up 4 bps to 4.57 per cent and NNPA 2.49 per cent (-8 bps QoQ) supported by 239 bps improvement in PCR to 46.7 per cent, ICICI Securities said in a note.

 

Steady credit cost reflects asset quality resilience despite industry headwinds. Growth and margins tailwinds are expected to aid earnings trajectory, the brokerage firm said.  Stock Analysis Shriram Finance

 

Analysts at InCred Equities believe that rising diversification and deep rural reach will enable healthy AUM growth, buoyed by a good monsoon season and a pick-up in investment activity. The brokerage firm retains Shriram Finance in its high-conviction stocks list with an ADD rating and a target price of ₹870, valuing the stock at ~2.1x FY27F BV. The slower-than-expected growth and a spike in fresh loan slippage are downside risks, the brokerage firm said.

 

Motilal Oswal Financial Services raise its FY26/FY27 estimates by 4 per cent/3 per cent to factor in higher NIM, lower opex, and credit costs. Shriram Finance has positioned itself to capitalize on its diversified AUM mix, improved access to liabilities, and enhanced cross-selling opportunities, the brokerage firm said in result update.

 

“Shriram Finance is our Top Idea in the NBFC sector for CY25, given its strong franchise and the potential to deliver a ~16 per cent/~18 per cent AUM/PAT compound annual growth rate (CAGR) over FY25-28E, along with an RoA/RoE of ~3.4 per cent/17 per cent by FY28,” analysts said.

 

Further, if Shriram Finance is able to identify a strategic partner who can infuse fresh equity into the company, it will both reinforce the balance sheet and also make Shriram Finance’s case stronger for a credit rating upgrade. The brokerage firm reiterates BUY with a target price of ₹860 (premised on 2x Sep’27E BVPS).