Used-CV leader with MUFG as partner
Shriram Finance is primarily engaged in the business of financing and does not manufacture any physical products. The Company is engaged in the business of financing commercial vehicles, passenger vehicles, construction equipment, farm equipment, micro, small and medium enterprises (MSME), two-wheelers, gold and personal loans. The company offers diverse financial products tailored to meet every customer’s unique needs. Whether it is pre-owned vehicle finance, personal loans, or farm equipment loans, its solutions are designed to empower individuals and businesses. The company designs every product with a focus on inclusion and customisation. Thus, ensuring it delivers the right support at the right time.
Shriram Finance Limited, a non-banking finance company, provides financing services in India. It offers fixed and recurring deposits; commercial vehicle loans for commercial goods vehicles, passenger commercial vehicles, tractors and farm equipment, and construction equipment; two-wheeler, gold, used car loan, and personal loans; and green finance services. The company also provides business loans, such as MSME loans; working capital loans, including tyre, tax, fuel, toll financing, repair/top-up loans, fuel finance, challan discounting and vehicle insurance premium loans; motor insurance, including four-wheeler, two-wheeler, passenger and goods carrying vehicle insurance products; non motor insurance products, such as personal accident, shri criti care, and home insurance; and life insurance products comprising savings, retirement, child, protection plans, as well as recharges, including mobile recharge, mobile postpaid, landline postpaid, DTH, and FASTag recharge services. In addition, it offers utilities and bills services, such as electricity, LPG gas, gas bill payment, broadband postpaid, water, and cable tv; financial services and taxes comprising credit card, loan repayment, insurance, municipal services, and recurring deposit; and other services, such as housing society, clubs and associations, and education fees. It serves first time buyers, small road transport operators, commercial vehicles operators, micro, small, and medium enterprises (MSMEs), and individuals. The company was formerly known as Shriram Transport Finance Company Limited and changed its name to Shriram Finance Limited in November 2022. Shriram Finance Limited was incorporated in 1979 and is based in Mumbai, India.
Key people: Mr. Parag Sharma (MD, CEO & Whole-Time Director) · Mr. Umesh Govind Revankar (Executive Vice Chairman) · Mr. Sunder Subramanian (Joint MD, CFO & Whole Time Director) · Mr. A. Ganesh (President & Chief Human Resources Officer) · Mr. Sudarshan Holla Balnad (Joint MD & COO) · Mr. Gouse Mohiddi Jilani (Joint MD & COO)
Shriram Finance major competitors are Bajaj Finserv, JIO Financial Serv., Chola Invest & Fin., Muthoot Finance, Power Finance Corpn., Indian Railway Fin., REC. Market Cap of Shriram Finance is ₹2,38,434 Crs. While the median market cap of its peers are ₹1,14,886 Crs.
Shriram Finance seems to be financially stable compared to its competitors.The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026
Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.
As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.
Shriram Finance is India's largest retail asset-financing NBFC (formed by the 2022 merger of Shriram Transport Finance, Shriram City Union Finance and Shriram Capital), with Rs 3.14 lakh crore AUM as of Jun-2026. Commercial vehicle finance (mostly used CVs) is ~47% of AUM (Rs 1.47 lakh cr), with passenger vehicles (Rs 68,650 cr), MSME (Rs 41,962 cr), two-wheelers, gold (Rs 7,514 cr) and personal loans making up the rest. It funds itself through NCDs, bank lines, ECBs and Rs 72,070 cr of public deposits.
TTM P/E 21.6x and P/B 2.96x on Rs 350 book (screener.in, 7-Sep-2026). Screener flags the stock as 'trading at 2.96x book'; 5-year average multiple not sourced. Antique values it at 2.2x FY28 book, MOFSL sees 28% upside from Rs 891 (Jun-2026); the stock has since re-rated to Rs 1,037. EV/EBITDA n.m.; dividend yield 1.0%.
| Cholamandalam Investment & Finance | Chola trades at 5.09x P/B and 27.0x P/E (screener.in 8-Sep-2026) for 19.4% ROE and 21% Q1 PAT growth; Shriram offers 60% Q1 PAT growth and 16% ROE at 2.96x P/B / 21.6x P/E, i.e. a much cheaper entry for similar-quality vehicle-finance exposure. |
| M&M Financial Services | M&M Fin is cheaper at 1.94x P/B / 15.5x P/E but earns only 12.3% ROE (11.1% 3-yr avg) with a 12% 3-yr profit CAGR and a history of volatile credit costs; Shriram's 16% ROE, 19% 3-yr / 32% 5-yr profit CAGR and 34% CRAR justify its premium. |
| Sundaram Finance | Sundaram is a high-quality but slower compounder (FY26 PAT Rs 2,059 cr, 17% 3-yr CAGR, 15% ROE) at 3.51x P/B / 23.0x P/E; Shriram gives 5x the profit pool, higher ROE and a lower multiple, with the MUFG partnership as a specific catalyst. |
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
NBFCs — 7.3%: the two franchises whose ROE justifies a premium to banks
NBFC credit is growing 15–17% against 10–12% for banks over FY26, AUM has doubled from ₹24 lakh crore in 2021 to ₹48 lakh crore and is heading for ₹70 lakh crore by FY27. Two things changed in the last eighteen months. The regulatory cycle turned: the RBI reversed the November 2023 risk-weight increase on bank lending to NBFCs, revised the co-lending framework and cut the repo rate 125 bp — so funding costs, which are the NBFC's raw material, are falling while deposit growth of 15% means banks have money to lend them (bank loans will be 44–45% of NBFC borrowings in FY27). And foreign strategic capital arrived: MUFG's ~$4.4 bn for 20% of Shriram Finance is one of the largest FDI deals in Indian financials and a marker of what a scaled, well-run lender is worth to a global bank. The valuation argument is the one the house makes about banks in reverse: a bank earning 16–17% ROE cannot compound faster than that without dilution, which is why 4–5x book is unsustainable for HDFC Bank or Kotak — but an NBFC that generates 20–30% ROE can carry it. That is why Bajaj Finance at 5.8x book is a Core holding and Kotak at 2x book is not.
Cholamandalam is an excellent vehicle financier but at 4x+ book already prices its growth, and its ROE (18–20%) is on a more bank-like, lower-yield book; M&M Financial has a decade of volatile credit costs; Sundaram Finance is conservative to the point of not growing. HDB Financial lists at a premium to its own economics on the HDFC halo. We hold no gold-loan or microfinance NBFC in the PMS (Manappuram appears only in the AIFs): the gold-loan regulatory reset and the FY25–26 microfinance stress cycle are exposures we would rather take through IDFC First and Shriram's diversified book.