Used-CV leader with MUFG as partner
| Peer | Status | P/E | ROE | Mkt cap | Why we do not hold it (approved text) | Links |
|---|---|---|---|---|---|---|
| Shriram Finance | Held | 20.92 | 15.21% | 2.37 L Cr | Used-CV leader with MUFG as partner | |
| Cholamandalam Investment & Finance | Not held | n/a | n/a | n/a | 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. | Screener · Tijori |
| M&M Financial Services | Not held | n/a | n/a | n/a | 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. | Screener · Tijori |
| Sundaram Finance | Not held | n/a | n/a | n/a | 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. | Screener · Tijori |
Peer numbers are shown only where the peer is in the security master (fundamentals pulled); "n/a" otherwise — a peer is not added to the data pull without a research request. Reasons are quoted from the one-pager (8 Sep 2026).
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.
All sectors we avoid or underweight →Bajaj Finance (3.5%, Core) is the highest-ROE scaled lender in India (18–20% on a levered, diversified book of 100+ million customers) and the benchmark for what technology-led underwriting can do; we pay 37x FY27E on the sheet for a franchise guiding 23–24% profit growth. Shriram Finance (3.5%, Core) is the mirror image: the largest used-commercial-vehicle financier, 16% ROE, 3x book, 21x earnings, a rural and self-employed borrower base that no bank can reach, and now a Japanese mega-bank as a 20% shareholder.