Main Industries:

• Vehicle financing
• SME financing
• Consumer loans

TOP 3 Markets:

1. India: approx. 85%
2. Southeast Asia: approx. 10%
3. Middle East: approx. 5%

Shriram Finance Limited generates the majority of its revenue from vehicle financing, especially through financing commercial vehicles and two-wheelers. The Indian market dominates the company's business field, as it has a strong presence and an established customer base there. In recent years, the company has expanded its operations in Southeast Asia and the Middle East to benefit from the growing markets in these regions.

Production Sites: India (As of 2023)

Shriram Finance Limited is a leading financial services company in India and does not produce any physical products. The company offers financial services such as vehicle financing, corporate loans, and insurance. Therefore, it does not rely on physical production facilities, but mainly operates through a network of branches and offices throughout India.

Strategy for Future Growth:

1. Diversification of Product Portfolio: Shriram Finance Limited plans to further diversify its product portfolio to appeal to a broader customer base. This includes introducing new financial products and services tailored to the needs of different customer segments.

2. Digitalization and Technology Integration: The company is heavily investing in digital platforms and technologies to enhance efficiency and improve customer experience. This involves expanding online services and implementing AI-based solutions for better customer analysis and risk assessments.

3. Geographical Expansion: Shriram Finance Limited is pursuing a strategy of geographical expansion, particularly in rural and underserved markets in India. The goal is to increase reach and gain new market shares.

4. Strengthening of Capital Base: To support growth, the company plans to strengthen its capital base through strategic partnerships and possibly by issuing new shares. This is intended to secure financial stability and enable investments in growth initiatives.

These strategic measures are intended to enable Shriram Finance Limited to sustainably grow and solidify its market position in a competitive market environment.

Commodities/Materials: No specific commodities

Shriram Finance Limited is a financial services company and not a manufacturing company. Therefore, it does not import physical commodities or materials. The company is mainly engaged in the financing of commercial vehicles, consumer finance, and other financial services.

In the financial industry, "commodities" are understood more in the form of capital and financial instruments traded on national and international financial markets. Shriram Finance could source capital from international investors or financial institutions, but these are not physical imports of commodities.

Market Share: 8% in the Indian NBFC sector (2024, estimated)
Credit Portfolio Growth: 18% (2024)
Return on Equity (ROE): 14.5% (2024)

Shriram Finance Limited has a significant competitive advantage in the Indian financial sector, especially in the Non-Banking Financial Companies (NBFCs) segment. The company benefits from a strong brand presence and an extensive network that enables it to reach a wide range of customers, particularly in rural and semi-urban areas.

Another advantage is the diversification of the credit portfolio, which saw a steady growth of 18% in 2024. This diversification minimizes risk and stabilizes the company's income.

Additionally, the 14.5% return on equity demonstrates the company's ability to efficiently utilize investments, indicating solid financial health and operational efficiency. Shriram Finance's competitive advantage is supported by its ability to offer innovative financial products while keeping costs low compared to its competitors.

Institutional Investor Share: Approximately 30% (estimated for 2025)

Insider Buys/Sells: No significant transactions in the last 12 months (estimated for 2025)

The institutional investor share in Shriram Finance Limited is estimated to be around 30%. This reflects the interest of institutional investors who are typically seeking stable and long-term investment opportunities.

Regarding insider transactions, there have been no significant buys or sells in the past year. This could indicate that the management has confidence in the current company strategy and performance, or that no significant changes in ownership structure are expected.

Market share of Shriram Finance Limited: Estimated around 5-7% (2025)

Main competitors and their market shares:

1. Bajaj Finance Limited: around 15%
2. HDFC Ltd.: around 12%
3. Mahindra & Mahindra Financial Services Limited: around 10%
4. LIC Housing Finance: around 8%
5. Sundaram Finance Limited: around 6%
6. Shriram Finance Limited: around 5-7%
7. Muthoot Finance: around 5%
8. Cholamandalam Investment and Finance Company: around 4%

Moat of Shriram Finance Limited:

Shriram Finance Limited has a moderate moat, mainly based on its strong presence in the commercial vehicle financing sector and its long-standing customer relationships. The company has established itself in niche markets not covered by all major financial service providers.

Compared to competitors like Bajaj Finance and HDFC Ltd., which have a broader product range and stronger brand presence, Shriram Finance's moat is less pronounced. These companies have a significant advantage due to their diversification and strong brands.

The competitive advantage of Shriram Finance lies in its specialized focus and ability to offer tailored financial solutions. However, this could come under pressure from increasing competition and the larger competitors' expansion into similar segments.

Revenue Growth: 18% (2024) Net Profit Growth: 14% (2024) Return on Equity (ROE): 16% (2024)

Shriram Finance Limited recorded strong revenue growth of 18% in 2024, attributed to successful expansion into new markets and increased demand for its financial services. The company was able to increase its net profit by 14%, indicating an efficient cost structure and effective risk management.

The 16% return on equity demonstrates that Shriram Finance is effectively able to generate profits from its equity, which is a positive signal for investors. This metric is above the industry average, indicating above-average profitability.

In summary, the financial performance of Shriram Finance Limited suggests a solid investment, especially for investors interested in a company with strong growth potential and solid profitability.

Dividend Yield: 3.5% (estimated for 2025)
Dividend History: Regular payouts over the past five years

Shriram Finance Limited has regularly distributed dividends to its shareholders in recent years. The dividend yield for the year 2025 is estimated to be around 3.5%, which can be considered solid compared to other companies in the industry.

The reliability of Shriram Finance's dividend payment is supported by its consistent payout history. Over the last five years, the company has consistently paid its dividends, indicating stable financial health and a well-thought-out dividend policy. Analysts believe that the company will continue to be able to pay dividends in the future based on its current financial performance and market position.