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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Shriram Finance's 3-Year RORE % for the quarter that ended in Jun. 2026 was 21.30%.
The industry rank for Shriram Finance's 3-Year RORE % or its related term are showing as below:
NSE:SHRIRAMFIN's 3-Year RORE % is ranked better than 68.02% of 519
companies
in the Credit Services industry
Industry Median: 8.27
vs NSE:SHRIRAMFIN: 21.30
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Shriram Finance 3-Year RORE % Related Terms
Shriram Finance 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Shriram Finance's 3-Year RORE % 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.
NSE:SHRIRAMFIN vs V, MA, AXP: 3-Year RORE % Comparison
For the Credit Services subindustry, Shriram Finance's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Shriram Finance's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Shriram Finance's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 3-year before.
Shriram Finance (NSE:SHRIRAMFIN) has a 3-Year RORE % of 21.30 as of Jun. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Shriram Finance and its competitors. According to the industry distribution chart, Shriram Finance ranks #166 out of 519 companies in the Credit Services industry, placing it in the top 32%.
Is Shriram Finance's 3-Year RORE % too high?
Shriram Finance's current 3-Year RORE % is 21.30. The Credit Services industry median 3-Year RORE % is 8.27. Shriram Finance's value of 21.30 is 157.6% above this industry median. Based on the distribution chart, Shriram Finance ranks #166 out of 519 companies in the Credit Services industry, which is above the industry midpoint. Overall, Shriram Finance has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shriram Finance's 3-Year RORE % compare to V and MA?
According to the Credit Services industry distribution chart, Shriram Finance ranks #166 out of 519 companies for 3-Year RORE %. This puts Shriram Finance in the upper half of its industry. The industry median 3-Year RORE % is 8.27. Shriram Finance's value of 21.30 is 157.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Credit Services company?
The median 3-Year RORE % among Credit Services companies is 8.27, based on 519 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shriram Finance's current 3-Year RORE % of 21.30 is 157.6% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Shriram Finance and its competitors. For the Credit Services industry, the median 3-Year RORE % is 8.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shriram Finance's current 3-Year RORE % is 21.30. 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 Modestly Overvalued. The stock's GF Value™ is ₹778.95, compared to a current price of ₹1,005.10 — trading 29% above its estimated fair value. The current 3-Year RORE % is 21.30 and 157.6% above the Credit Services industry median of 8.27. Shriram Finance's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Shriram Finance (NSE:SHRIRAMFIN), the current 3-Year RORE % is 21.30 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 ₹1,005.10 is trading 29% above its estimated GF Value™ of ₹778.95.
GuruFocus considers Shriram Finance to be Modestly Overvalued.
Key valuation signals for NSE:SHRIRAMFIN:
3-Year RORE %: 21.30
GF Value™: ₹778.95 vs. price of ₹1,005.10 (29% above fair value)
Industry Position: 157.6% above the Credit Services median (#166 of 519)
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
Get the complete analysis for NSE:SHRIRAMFIN
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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