Shriram Finance witnessed a strong rise in its share price, gaining nearly eight percent in the market. The surge reflects positive investor sentiment toward the NBFC sector and has prompted discussions on the stock’s future outlook.
Shriram Finance's share price surged as much as 7% intraday trade on the BSE on Tuesday (March 10, 2026) after suffering losses in the last two consecutive sessions. The shares opened at Rs. 1,016.50 against their previous close of Rs. 987.15 and jumped 7% to an intraday high of Rs. 1,068.70 amid positive market sentiment after US President Donald Trump said the US-Iran war may end soon.
The US-Iran war and a sharp jump in crude oil prices triggered massive profit-taking across many banking and financial stocks. With sentiment improving, they are back on investors' radar.
Experts remain positive about the stock for the long term. The stock appears to be rising on value buying after the recent market crash.
Vinit Bolinjkar, the head of research at Ventura, pointed out that “Shriram Finance remains one of the strongest franchise players in India’s retail NBFC space, particularly in the used commercial vehicle (CV) financing segment, where it has decades of underwriting experience and deep borrower relationships.”
“Structurally, the company benefits from strong demand for small transport operators, improving freight activity, and rising replacement demand for used CVs, which should support steady AUM growth,” said Bolinjkar.
Bolinjkar added: “The company has demonstrated consistent loan growth, stable asset quality, and strong profitability, with ROA typically around 3% and ROE in the 18–20% range, which remains superior to many NBFC peers.”
“Another key positive is the merger synergies from the integration of Shriram Transport Finance and Shriram City Union Finance, which continue to support operating leverage, cross-selling opportunities, and improved cost efficiencies. Additionally, a stable liability franchise supported by bank borrowings, NCDs, and deposits provides funding visibility,” Bolinjkar added.
The company’s diversified lending portfolio, such as MSME, two-wheelers, passenger vehicles, and gold loans, also reduces reliance on a single segment.
While the stock appears to be a good fundamental bet, technical experts suggest waiting for a decisive close above Rs. 1,042.
"Currently, the stock is holding support near the 50-DEMA, indicating that the short-term trend remains constructive. However, the Directional Movement Index (DMI) generated a negative crossover on March 4, with the reference candle having a high of Rs. 1,042. The current price is trading slightly above this level, but confirmation is still required," said Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers