Shriram Finance share price surged as much as 7% intraday trade on the BSE on Tuesday, March 10, after suffering losses in the last two consecutive sessions. Shriram Finance shares opened at ₹1016.50 against their previous close of ₹987.15 and jumped 7% to an intraday high of ₹1,056.80 amid positive market sentiment after US President said the US-Iran war may end soon.
Why is Shriram Finance share price rising?
The stock appears to be rising on value buying after the recent market crash. The US-Iran war and a sharp jump in crude oil prices triggered massive profit-taking across many banking and financial stocks. With sentiment improving, they are back on investors’ radar.
On a monthly basis, till the previous session, share price was down nearly 9% in March so far after clocking gains for the last six consecutive months.
Experts remain positive about the stock for the long term.
Vinit Bolinjkar, the head of research at Ventura, pointed out that Shriram Finance remains one of the strongest franchise players in India’s retail NBFC space, particularly in the used commercial vehicle (CV) financing segment, where it has decades of underwriting experience and deep borrower relationships.
Structurally, the company benefits from strong demand for small transport operators, improving freight activity, and rising replacement demand for used CVs, which should support steady AUM growth, said Bolinjkar.
Bolinjkar added that the company has demonstrated consistent loan growth, stable asset quality, and strong profitability, with ROA typically around 3% and ROE in the 18–20% range, which remains superior to many NBFC peers.
The company’s diversified lending portfolio—including MSME, two-wheelers, passenger vehicles, and gold loans—also reduces reliance on a single segment.
Another key positive is the merger synergies from the integration of Shriram Transport Finance and Shriram City Union Finance, which continue to support operating leverage, cross-selling opportunities, and improved cost efficiencies. Additionally, a stable liability franchise supported by bank borrowings, NCDs, and deposits provides funding visibility, Bolinjkar added.
Should investors buy?
According to Bolinjkar, overall, Shriram Finance appears fundamentally well-positioned for long-term investors, supported by its niche dominance in the used CV financing market, strong profitability metrics, and continued balance sheet growth, though near-term performance will depend on credit costs and the broader economic cycle.
However, Bolinjkar added that investors should monitor credit costs and rural cash flow trends, as the company’s borrower base is relatively sensitive to economic cycles. Rising interest rates could also impact spreads if funding costs move faster than asset yields.
While the stock appears to be a good fundamental bet, technical experts suggest waiting for a decisive close above ₹1,042.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, pointed out that the price action has shown signs of reversal after the stock closed above the 23.6% Fibonacci retracement level in the previous session.
“Currently, the stock is holding support near the 50-DEMA, indicating that the short-term trend remains constructive. However, the Directional Movement Index (DMI) generated a negative crossover on March 4, with the reference candle having a high of ₹1,042. The current price is trading slightly above this level, but confirmation is still required,” said Patel.
“Traders should wait for a decisive close above ₹1,042, which would negate the negative DMI crossover and signal renewed bullish momentum. If the stock sustains above this level on a closing basis, it could potentially move towards the target of ₹1,125, while maintaining a stop loss at ₹1,006 on a closing basis to manage downside risk,” said Patel.
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