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 ₹1,016.50 against their previous close of ₹987.15 and jumped 7% to an intraday high of ₹1,068.70 amid positive market sentiment after US President Donald Trump 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, Shriram Finance’s 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.
According to Sachin Gupta, VP of research of Choice Broking, the price action is evolving within a well-defined ascending channel, supported by a noticeable spike in trading volumes. This indicates steady accumulation, possibly by institutional participants, at current levels.
Moreover, the RSI (14) is currently hovering near 52, which keeps the indicator in the neutral zone and suggests there is still room for further upside before the stock enters overbought territory, said Gupta.
“In the near term, the key hurdle for the bulls lies in the ₹1,051– ₹1,056 zone. A decisive breakout above this resistance band, especially if accompanied by a bullish MACD crossover, could open the door for a retest of the 52-week high near ₹1,108 and potentially higher levels,” said Gupta.
“On the downside, the structure remains well supported with immediate demand around ₹1,023, while a stronger structural support is placed near ₹972. These levels will be important to watch to keep the current bullish setup intact,” Gupta said.
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Disclaimer: This story is for educational purposes only. 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.
