Is Shriram Finance the Best Stock in Its Sector? A Look at the Numbers

Is Shriram Finance the best stock in its sector? The stock trades on the NSE at Rs 934 as of 12 October 2026, within its 52-week range of Rs 658.75 to Rs 1,153.70. Shriram Finance Ltd is one of India's larger non-banking finance companies, with a focus on commercial vehicle finance and loans to small businesses and other retail customers.

Shriram Finance sits in the Finance sector, and its 15.21% ROE and 19.56x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector's Industry P/E benchmark.

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About Shriram Finance

Shriram Finance Ltd is one of India's larger non-banking finance companies, with a focus on commercial vehicle finance and loans to small businesses and other retail customers. Its lending is concentrated on customer segments that are often underserved by larger banks. The stock trades about 19 percent below its 52-week high and about 42 percent above its 52-week low. At a market capitalisation of Rs 2,21,425 Cr, it is tracked as part of the Finance sector on Univest.

Is Shriram Finance the Best Stock in Its Sector?

Shriram Finance makes its case as the best stock in its sector primarily on return on equity and balance sheet strength, combining a 15.21% ROE with a 19.56x P/E against the sector's 17.58x Industry P/E. Shriram Finance's 19.56x P/E is a modest premium to the 17.58x Industry P/E, paired with a 15.21% ROE and a 2.10 P/B.

Metric	Shriram Finance
CMP (NSE)	Rs 934.20
52-Week High / Low	Rs 1,153.70 / Rs 658.75
Market Cap	Rs 2,21,425 Cr
P/E (TTM) vs Industry P/E	19.56x vs 17.58x
P/B	2.10
ROE	15.21%
EPS (TTM)	Rs 48.10
Dividend Yield	0.92%
Debt to Equity	3.80

Compare Shriram Finance Against Other Finance Sector Stocks

How Shriram Finance Compares Against Its Finance Sector Peers

The table below sets Shriram Finance against 2 other Finance sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.

Company	Market Cap (Rs Cr)	P/E	ROE	Debt to Equity
Shriram Finance	2,21,425	19.56	15.21%	3.80
Cholamandalam Investment and Finance	1,35,366	23.54	17.18%	6.93
Bajaj Finance	5,96,540	28.89	16.68%	3.82
Peer average (2 companies)	-	26.21	16.93%	5.38

Against this peer set, Shriram Finance's 15.21% ROE is below the 16.93% peer average, and its P/E of 19.56x runs below the peer average of 26.21x. Shriram Finance's 19.56x P/E is a modest premium to the 17.58x Industry P/E, paired with a 15.21% ROE and a 2.10 P/B.

What Makes Shriram Finance Worth Watching in Finance

• Solid returns: A 15.21% ROE shows decent profitability on shareholder capital.
• Modest premium: A 19.56x P/E sits only slightly above the 17.58x Industry P/E.
• Leverage: A debt to equity ratio of 3.80 is lower than Cholamandalam's 6.93 in the peer table.

Shriram Finance Valuation: Is It Justified?

Shriram Finance's 19.56x P/E is a modest premium to the 17.58x Industry P/E, paired with a 15.21% ROE and a 2.10 P/B. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.

Also read – Is Sun Pharma the Best Stock in Its Sector? A Look at the Numbers

Download the Univest iOS App or Univest Android App to track Shriram Finance and other Finance sector stocks.

How to Track Shriram Finance Before You Invest

Before deciding whether Shriram Finance deserves its label as the best stock in its sector for your own portfolio, compare it directly against Finance sector peers using the steps below.

1. Open the Univest Screener and search for Shriram Finance to view live price, valuation ratios, and peer comparisons within the Finance sector.
2. Compare its P/E, P/B, and ROE against other Finance sector stocks before deciding if the current valuation fits your strategy.
3. Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
4. Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.

Conclusion

Shriram Finance earns a place in the best stock in its sector conversation on the strength of a 15.21% ROE and a P/E of 19.56x against a 17.58x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.

Is Shriram Finance the best stock in its sector?

Ans. Shriram Finance has a 15.21% ROE and trades at 19.56x P/E against a 17.58x Industry P/E, and compares below the peer average ROE of 16.93% in this article's named comparison, so the answer depends on what an investor is prioritising.

What is the current share price of Shriram Finance?

Ans. Shriram Finance was trading at Rs 934.20 on the NSE as of 12 October 2026, within its 52-week range of Rs 658.75 to Rs 1,153.70.

What sector does Shriram Finance belong to?

Ans. Shriram Finance is classified under the Finance sector on Univest.

How does Shriram Finance compare to its sector peers on P/E?

Ans. Shriram Finance's P/E of 19.56x is below the 26.21x average of the 2 named peers compared in this article.

What is Shriram Finance's return on equity?

Ans. Shriram Finance reported a return on equity of 15.21%, which is below the 16.93% average of its named peers in this comparison.

Should I invest in Shriram Finance based on its sector position?

Ans. Shriram Finance's sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.

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