Shriram Finance (India) Buy Hold or Sell Recommendation
| SHRIRAMFIN | 642.30 19.05 3.06% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Shriram Finance Limited is 'Cautious Hold'. The recommendation algorithm takes into account all of Shriram Finance's available fundamental, technical, and predictive indicators you will find on this site.
Check out Shriram Finance Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Shriram and provide practical buy, sell, or hold advice based on investors' constraints. Shriram Finance Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
Shriram |
Execute Shriram Finance Buy or Sell Advice
The Shriram recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Shriram Finance Limited. Macroaxis does not own or have any residual interests in Shriram Finance Limited or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Shriram Finance's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Shriram Finance Trading Alerts and Improvement Suggestions
| Shriram Finance is unlikely to experience financial distress in the next 2 years | |
| Shriram Finance Limited has accumulated about 97.75 B in cash with (311.01 B) of positive cash flow from operations. | |
| Roughly 34.0% of the company outstanding shares are owned by corporate insiders | |
| Latest headline from news.google.com: Why Shriram Finance Share Price is Rising - Equitymaster |
Shriram Finance Returns Distribution Density
The distribution of Shriram Finance's historical returns is an attempt to chart the uncertainty of Shriram Finance's future price movements. The chart of the probability distribution of Shriram Finance daily returns describes the distribution of returns around its average expected value. We use Shriram Finance Limited price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Shriram Finance returns is essential to provide solid investment advice for Shriram Finance.
| Mean Return | 0 | Value At Risk | -3.71 | Potential Upside | 4.41 | Standard Deviation | 2.43 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Shriram Finance historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Shriram Finance Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (83.5B) | (125.2B) | (158.8B) | (274.1B) | (246.7B) | (234.3B) | |
| Change In Cash | 79.6B | (3.9B) | (7.3B) | (37.5B) | (33.8B) | (32.1B) | |
| Free Cash Flow | (42.6B) | (88.9B) | (178.2B) | (313.7B) | (282.3B) | (268.2B) | |
| Depreciation | 1.4B | 1.4B | 6.0B | 5.9B | 6.8B | 7.1B | |
| Other Non Cash Items | 49.9B | 38.3B | 1.9B | 35.1B | 40.3B | 42.3B | |
| Dividends Paid | 1.5B | 8.5B | 5.6B | 18.8B | 21.6B | 22.6B | |
| Capital Expenditures | 258.2M | 357.5M | 2.0B | 2.7B | 3.1B | 3.2B | |
| Net Income | 32.8B | 35.5B | 82.1B | 73.7B | 84.7B | 88.9B | |
| End Period Cash Flow | 110.5B | 106.6B | 99.3B | 61.8B | 71.1B | 38.6B | |
| Investments | (248.9M) | (343.3M) | (1.9B) | (2.6B) | (2.3B) | (2.2B) |
Shriram Finance Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Shriram Finance or Consumer Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Shriram Finance's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Shriram stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.03 | |
β | Beta against Dow Jones | 0.40 | |
σ | Overall volatility | 2.44 | |
Ir | Information ratio | 0.03 |
Shriram Finance Volatility Alert
Shriram Finance Limited currently demonstrates below-average downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.03. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Shriram Finance's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Shriram Finance's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Shriram Finance Fundamentals Vs Peers
Comparing Shriram Finance's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Shriram Finance's direct or indirect competition across all of the common fundamentals between Shriram Finance and the related equities. This way, we can detect undervalued stocks with similar characteristics as Shriram Finance or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Shriram Finance's fundamental indicators could also be used in its relative valuation, which is a method of valuing Shriram Finance by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Shriram Finance to competition |
| Fundamentals | Shriram Finance | Peer Average |
| Return On Equity | 0.16 | -0.31 |
| Return On Asset | 0.0322 | -0.14 |
| Profit Margin | 0.46 % | (1.27) % |
| Operating Margin | 0.62 % | (5.51) % |
| Current Valuation | 2.58 T | 16.62 B |
| Shares Outstanding | 1.88 B | 571.82 M |
| Shares Owned By Insiders | 33.66 % | 10.09 % |
| Shares Owned By Institutions | 45.19 % | 39.21 % |
| Price To Book | 2.22 X | 9.51 X |
| Price To Sales | 6.71 X | 11.42 X |
| Revenue | 161.13 B | 9.43 B |
| Gross Profit | 168.51 B | 27.38 B |
| EBITDA | 229.36 B | 3.9 B |
| Net Income | 73.66 B | 570.98 M |
| Cash And Equivalents | 97.75 B | 2.7 B |
| Total Debt | 1.51 T | 5.32 B |
| Book Value Per Share | 278.69 X | 1.93 K |
| Cash Flow From Operations | (311.01 B) | 971.22 M |
| Earnings Per Share | 41.32 X | 3.12 X |
| Target Price | 701.83 | |
| Number Of Employees | 77.76 K | 18.84 K |
| Beta | 1.24 | -0.15 |
| Market Capitalization | 1.17 T | 19.03 B |
| Total Asset | 2.48 T | 29.47 B |
| Retained Earnings | 192.8 B | 9.33 B |
| Annual Yield | 0.02 % | |
| Net Asset | 2.48 T | |
| Last Dividend Paid | 9.4 |
Shriram Finance Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Shriram . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 210426.0 | |||
| Daily Balance Of Power | 0.9695 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 635.88 | |||
| Day Typical Price | 638.02 | |||
| Price Action Indicator | 15.95 | |||
| Period Momentum Indicator | 19.05 |
About Shriram Finance Buy or Sell Advice
When is the right time to buy or sell Shriram Finance Limited? Buying financial instruments such as Shriram Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Other Information on Investing in Shriram Stock
Shriram Finance financial ratios help investors to determine whether Shriram Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Shriram with respect to the benefits of owning Shriram Finance security.