Lower interest rate scenario may further push up Shriram Finance share price

Shriram Finance shares are seeing some profit booking today. At 11:25 a.m. IST, 13^th November, 2025, its share price is down by 0.57%, trading at Rs 817.85. Nifty 50 index is up by 0.39% at this time. Shriram Finance shares gained more than 3% in the past 5 days. This, after the company posted its September quarter result.

EPS in September quarter went down by more than 77%

Shriram Finance’s net profit in the September quarter increased year-on-year (y-o-y) by 11.39% to Rs 2,307.18 crore. But Earnings per share (EPS) went down y-o-y by 77.7% to Rs 12.27 in the quarter from Rs 55.09 in the September 2024 quarter. EPS is a measure of the wealth that a company is creating for its shareholders. The decline in EPS, in spite of increase in net profit, means that EPS of the company got diluted because of increase in its total number of outstanding shares. EPS is calculated by dividing net profit by total number of outstanding shares.

Shriram Finance among the best performing stocks this year

Shriram Finance is among the best performing stocks in 2025. Year-to-date in 2025, its shares have gained 39.84%. In the same period Nifty 50 index has gained 9.35%. The stock has outperformed the Nifty index by more than 30% this year.

Nifty Financial Services index has gained 15.42% year-to-date in 2025. Shriram Finance has outperformed the Nifty Financial Services index by more than 24% this year. The stock is a constituent of Nifty Financial Services index. Its current weight in the index is 2.22%.

A large part of the gains that Shriram Finance shares have seen this year have come from September 2025 onward. The graph of its rise becomes quite steep from September onwards. In the past 5 years Shriram Finance shares have gained around 335%. Nifty 50 index has gained 104% in this period. Nifty Financial services index has gained 18.46% in this period. The stock has outperformed the Nifty 50 index by more than 200% in the past 5 years. It has outperformed the Nifty Financial Services index by a whopping more than 300% in this period. That makes the stock one of the best in terms of returns given not only in the financial services sector but across sectors.

Low inflation in October has increased the probability of another interest rate cut by RBI soon

India’s retail price inflation dropped to just 0.25%, year-on-year, in October. This has increased the prospect of RBI going for an interest rate cut in its December monetary policy meeting. Lower interest rates are favorable for Shriram Finance. It reduces the cost of its funding. This in turn may give a boost to its Net Interest Income. It will also give a boost to demand for its loan products.

One of the sources of competitive advantage of Shriram Finance is the vast range of financial services products that it offers. It offers two-wheeler loans, personal loans, used car loans, business loans, gold loans, fuel loans, fixed deposit products, payment processing service, life insurance products, general insurance products etc. It has developed capabilities in offering all these various financial services.

Shriram Finance shares are currently trading at 12-month trailing price-to-earnings (P/E) ratio of 15.61. Stocks that make up Nifty Financial Services Index are currently trading at a P/E ratio of 17.86. That makes the stock relatively cheaper too in terms of market valuation.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest. Investments in stocks are subject to market risks and other risks. There is no guarantee of the return that will be actually given.

Source: NSE, Shriram Finance