Multibagger stock Shriram Finance is among the top Nifty gainers over the last one year, rising as much as 30%. The non-banking financial company (NBFC) will report is September quarter (Q2FY27) results on 23 October which experts expect to be healthy.
Brokerage firm Motilal Oswal Financial Services expects the company’s net interest income (NII) may rise by 35.1% year-on-year (YoY), while operating profit may grow by 43.5% YoY. Net profit may see a 56% YoY jump.
Shriram Finance share price return history
As per the NSE data, the stock has gained 30% over the last 1 year, compared to a 12% fall in equity benchmark Nifty 50. However, in the recent past, the stock has witnessed profit bookings. Year-to-date, Shriram Finance share price is down 11% compared to a 13% decline in Nifty 50.
However, on longer timeframes of three and five years, the stock has surged 141% and 198%, respectively.
Shriram Finance shares hit their 52-week high of ₹1,153.70 on 6 August this year and a 52-week low of ₹690.30 on 21 October.
Is Shriram Finance a stock to buy ahead of Q2 results?
Ravi Singh, Chief Research Officer at Master Capital Services said Shriram Finance has a strong financing business. Q1FY27 revenue increased 16% YoY to ₹13,400 crore, while PAT surged 60% to ₹3,453 crore. Management maintains 18% growth guidance and 2% credit costs.
“At ₹700, the stock looks fundamentally strong, with valuation attractive near its 5-year median P/B of 2x versus the current 2.66x,” said Singh.
On the technical front, the stock is currently hovering around its 300-day exponential moving average (DEMA), which is acting as an important support level.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, said major support for the stock is placed near ₹890.
As per Patel, momentum indicators remain sluggish across major time frames, suggesting that buying strength is yet to improve significantly. Hence, a cautious approach is advisable, and investors should avoid aggressive buying at current levels.
“For portfolio accumulation, the ₹890– ₹900 zone appears to be an important area to watch, as the stock may offer a more favourable entry opportunity near this support zone,” said Patel.
“Investors should monitor price action and momentum indicators for signs of stabilisation before initiating fresh positions. A sustained breakdown below the major support could weaken the technical structure and warrant reassessment of the investment strategy,” Patel said.
Deepesh Sarawagi, a technical research analyst at Choice Broking, underscored that the stock has been consolidating near the lower trendline of an ascending channel pattern on the daily chart. It is trading below all key moving averages, indicating weakness in the short-term trend.
The RSI stands at 38.59, reflecting subdued momentum and limited buying interest.
“The price action near the lower channel boundary remains crucial, as holding this zone could trigger a recovery, while a breakdown may lead to further downside,” said Sarawagi.
“On the downside, ₹900-920 is the immediate support, followed by a major support zone around ₹865, based on previous price action. A sustained break below ₹865 could increase selling pressure. On the upside, ₹970 is the nearest resistance, while ₹1,000 remains a major hurdle,” Sarawagi said.
According to Sarawagi, the stock needs to reclaim these resistance levels and move above its key moving averages to improve its technical outlook. Until then, the overall bias remains sideways, and traders should monitor the support zones for further directional cues.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
