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Shriram FinanceNSE:SHRIRAMFIN +0.37%73 ROE % is 20.95% as of Jun. 2026, which is 30% above its 10-year median of 16.16. GuruFocus rates NSE:SHRIRAMFIN with a GF Score™ of 73/100 and a GF Value™ of ₹781.27 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 531 Credit Services companies, Shriram Finance ranks better than 84.18% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Shriram Finance's annualized net income for the quarter that ended in Jun. 2026 was ₹138,111 Mil. Shriram Finance's average Total Stockholders Equity over the quarter that ended in Jun. 2026 was ₹659,186 Mil. Therefore, Shriram Finance's annualized ROE % for the quarter that ended in Jun. 2026 was 20.95%.
The historical rank and industry rank for Shriram Finance's ROE % or its related term are showing as below:
NSE:SHRIRAMFIN'
s ROE % Range Over the Past 10 Years
Min: 11.38 Med: 16.16 Max: 20.28
Current: 18.55
During the past 13 years, Shriram Finance's highest ROE % was 20.28%. The lowest was 11.38%. And the median was 16.16%.
NSE:SHRIRAMFIN's ROE % is ranked better than 84.18% of 531
companies
in the Credit Services industry
Industry Median: 6.67
vs NSE:SHRIRAMFIN: 18.55
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Shriram Finance ROE % Related Terms
Shriram Finance ROE % Historical Data
* Premium members only.
The historical data trend for Shriram Finance's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Shriram Finance's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Shriram Finance ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Shriram Finance's ROE % distribution charts can be found below:
* The bar in red indicates where Shriram Finance's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Shriram Finance (NSE:SHRIRAMFIN) has a ROE % of 20.95% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Shriram Finance and its competitors. This is 30% above median its historical median of 16.16. Over the past decade, Shriram Finance's ROE % has ranged from 11.38 to 20.28. According to the industry distribution chart, Shriram Finance ranks #84 out of 531 companies in the Credit Services industry, placing it in the top 15.8%.
Is Shriram Finance's ROE % too high?
Shriram Finance's current ROE % of 20.95% is 30% above median its 10-year median of 16.16. Over the past 10 years, this metric has ranged from a low of 11.38 to a high of 20.28. The Credit Services industry median ROE % is 6.67. Shriram Finance's value of 20.95% is 214.1% above this industry median. Based on the distribution chart, Shriram Finance ranks #84 out of 531 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Shriram Finance has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shriram Finance's ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Shriram Finance ranks #84 out of 531 companies for ROE %. This places Shriram Finance in the top 16% of its industry — outperforming the majority of peers. The industry median ROE % is 6.67. Shriram Finance's value of 20.95% is 214.1% above this benchmark. Historically, Shriram Finance's own ROE % has ranged from 11.38 to 20.28 over the past decade. While the company's 10-year median is 16.16 vs. the industry median of 6.67, Shriram Finance has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.67, based on 531 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shriram Finance's current ROE % of 20.95% is 214.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Shriram Finance and its competitors. For the Credit Services industry, the median ROE % is 6.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shriram Finance's current ROE % is 20.95%, which is 30% above median its own 10-year median of 16.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shriram Finance stock overvalued right now?
Based on GuruFocus' analysis, Shriram Finance (NSE:SHRIRAMFIN) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹781.27, compared to a current price of ₹1,044.70 — trading 33.7% above its estimated fair value. The current ROE % is 20.95%, which is 30% above median its 10-year median of 16.16 and 214.1% above the Credit Services industry median of 6.67. Shriram Finance's overall GF Score™ is 73/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Shriram Finance (NSE:SHRIRAMFIN), the current ROE % is 20.95% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Shriram Finance (NSE:SHRIRAMFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Shriram Finance stock appears to be overvalued.
The current stock price of ₹1,044.70 is trading 33.7% above its estimated GF Value™ of ₹781.27.
GuruFocus considers Shriram Finance to be Significantly Overvalued.
Key valuation signals for NSE:SHRIRAMFIN:
ROE %: 20.95% (30% above median its 10-year median of 16.16)
GF Value™: ₹781.27 vs. price of ₹1,044.70 (33.7% above fair value)
Industry Position: 214.1% above the Credit Services median (#84 of 531)
No single metric tells the full story. See the NSE:SHRIRAMFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shriram Finance Ltd is an Indian non-banking finance company. It is engaged in the financing of pre-owned commercial vehicles, equipment, and other loans. The company focuses on loan origination, valuation, and collection for pre-owned and new commercial and passenger vehicles, tractors, 3-wheelers, multi-utility vehicles, and also provides ancillary services such as finance for working capital, engine replacement, bill discounting, credit cards, and tire-loans as holistic financing support. The company's revenue consists of interest income on loans provided. Geographically, it derives maximum revenue from India.
73GF Score
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