SHRIRAM FINANCE LIMITED Valuation

SHRIRAMFIN · Financial Services · Current price ₹1,036.6

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DocStoX fair value
₹794
low confidence
Current price
₹1,037
Upside
-23.4%
P/E ratio
19.5x
P/B ratio
3.0x
Verdict
Expensive
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Is SHRIRAM FINANCE LIMITED undervalued?

DocStoX estimates the fair value of SHRIRAM FINANCE LIMITED at ₹794 per share, versus the current market price of ₹1,037. That puts the stock about -23.4% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Excess-return (book value) (₹368), Relative P/E (₹1,614), Analyst target (₹1,203). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹368 (bear) to ₹794 (base) to ₹1,614 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

SHRIRAM FINANCE LIMITED trades at a P/E of 19.5x and a P/B of 3.0x, with a dividend yield of 1.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on SHRIRAM FINANCE LIMITED

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.