Shriram Finance Limited

BSE:511218 Stock Report

Market Cap: ₹1.1t

Shriram Finance Valuation

Is 511218 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 511218 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 511218 (₹2824.45) is trading above our estimate of fair value (₹1894.1)

Significantly Below Fair Value: 511218 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 511218?

Key metric: As 511218 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 511218. This is calculated by dividing 511218's market cap by their current earnings.
What is 511218's PE Ratio?
PE Ratio13.3x
Earnings₹79.85b
Market Cap₹1.07t

Price to Earnings Ratio vs Peers

How does 511218's PE Ratio compare to its peers?

The above table shows the PE ratio for 511218 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.4x
511243 Cholamandalam Investment and Finance
27.1x21.9%₹1.0t
MUTHOOTFIN Muthoot Finance
16.2x13.9%₹757.0b
SBICARD SBI Cards and Payment Services
29.5x20.7%₹644.1b
SUNDARMFIN Sundaram Finance
29x13.3%₹459.3b
511218 Shriram Finance
13.3x13.8%₹1.1t

Price-To-Earnings vs Peers: 511218 is good value based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (25.4x).

Price to Earnings Ratio vs Industry

How does 511218's PE Ratio compare vs other companies in the IN Consumer Finance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
523384 Maha Rashtra Apex
0.6xn/aUS$25.38m
No more companies available in this PE range
511218 13.3xIndustry Avg. 20.9xNo. of Companies10PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 511218 is good value based on its Price-To-Earnings Ratio (13.3x) compared to the Indian Consumer Finance industry average (20.9x).

Price to Earnings Ratio vs Fair Ratio

What is 511218's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

511218 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: 511218 is good value based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 511218 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹2,824.45
₹3,660.97
+29.6%
7.8%₹4,280.00₹2,941.00n/a33
Nov ’25₹3,151.40
₹3,681.03
+16.8%
6.9%₹4,280.00₹3,000.00n/a33
Oct ’25₹3,572.20
₹3,482.94
-2.5%
8.8%₹4,280.00₹2,750.00n/a34
Sep ’25₹3,203.55
₹3,352.88
+4.7%
6.6%₹3,800.00₹2,750.00n/a34
Aug ’25₹2,988.85
₹3,345.24
+11.9%
6.5%₹3,800.00₹2,750.00n/a34
Jul ’25₹2,923.70
₹2,973.65
+1.7%
7.4%₹3,440.00₹2,309.00n/a31
Jun ’25₹2,352.85
₹2,907.03
+23.6%
6.9%₹3,350.00₹2,309.00n/a31
May ’25₹2,548.65
₹2,907.84
+14.1%
6.9%₹3,350.00₹2,309.00n/a31
Apr ’25₹2,432.70
₹2,699.90
+11.0%
6.9%₹3,000.00₹2,131.00n/a30
Mar ’25₹2,450.95
₹2,681.57
+9.4%
6.8%₹3,000.00₹2,131.00n/a30
Feb ’25₹2,395.85
₹2,599.69
+8.5%
12.4%₹3,000.00₹1,486.00n/a32
Jan ’25₹2,047.65
₹2,210.75
+8.0%
10.5%₹2,700.00₹1,486.00n/a32
Dec ’24₹2,004.75
₹2,207.63
+10.1%
10.3%₹2,700.00₹1,486.00n/a32
Nov ’24₹1,901.70
₹2,188.06
+15.1%
10.8%₹2,700.00₹1,486.00₹3,151.4033
Oct ’24₹1,920.30
₹2,042.61
+6.4%
12.6%₹2,400.00₹1,485.00₹3,572.2033
Sep ’24₹1,910.80
₹2,036.55
+6.6%
12.5%₹2,400.00₹1,485.00₹3,203.5533
Aug ’24₹1,853.95
₹1,968.16
+6.2%
15.3%₹2,400.00₹1,320.00₹2,988.8532
Jul ’24₹1,735.15
₹1,630.68
-6.0%
14.7%₹2,400.00₹1,320.00₹2,923.7028
Jun ’24₹1,410.35
₹1,571.93
+11.5%
9.2%₹1,875.00₹1,320.00₹2,352.8528
May ’24₹1,332.65
₹1,555.86
+16.7%
9.6%₹1,875.00₹1,290.00₹2,548.6528
Apr ’24₹1,259.85
₹1,560.67
+23.9%
9.8%₹1,900.00₹1,290.00₹2,432.7027
Mar ’24₹1,221.60
₹1,552.07
+27.1%
9.8%₹1,900.00₹1,290.00₹2,450.9528
Feb ’24₹1,297.90
₹1,528.93
+17.8%
9.7%₹1,850.00₹1,206.00₹2,395.8527
Jan ’24₹1,379.80
₹1,510.48
+9.5%
10.1%₹1,850.00₹1,206.00₹2,047.6527
Dec ’23₹1,285.35
₹1,501.96
+16.9%
10.4%₹1,850.00₹1,206.00₹2,004.7527
Nov ’23₹1,207.20
₹1,506.31
+24.8%
10.8%₹1,850.00₹1,206.00₹1,901.7026

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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