Shriram Finance up 45% in a year but down 7% YTD amid profit booking

The stock hit a 52-week high on 6 August and a 52-week low of ₹ 611.15 on 30 September of the previous year. On a monthly basis, it declined 11.5% in September, ending a five-month winning streak.

Over longer horizons, Shriram Finance has risen 146% in three years and 265% in five years on the NSE, reflecting multibagger performance.

Motilal Oswal Financial Services maintains a buy rating with a target price of ₹ 1,220, implying 29% upside from the 1 October closing price of ₹ 945. The brokerage cites near-term macro headwinds but expects the company’s structural drivers—such as higher growth capacity, lower incremental cost of funds following a credit rating upgrade, and product diversification—to support earnings.

It forecasts a CAGR of nearly 18% in assets under management and 29% in profit after tax from FY26 to FY28, with return on assets and return on equity projected to reach nearly 4% and 13.5% respectively by FY28.

Technically, the stock is in a short-term downtrend marked by lower highs and lower lows, though the medium-term trend is sideways and the long-term trend remains upward. Aditya Thukral of AT Research and Risk Managers advises watching for reversal signs near ₹ 909 support, warning that a break below ₹ 900 could signal further downside toward ₹ 750.

Vipin Kumar of Globe Capital Market notes the stock has been consolidating in a slightly upward-sloping channel over the past nine months, with support between ₹ 880 and ₹ 920 and resistance around ₹ 1,150–₹ 1,180. He adds that a decisive fall below ₹ 850 could break the channel and push the stock toward ₹ 800.

The article includes a disclaimer stating it is for educational purposes only and does not constitute investment advice.