SHRIRAMFIN - Stock AnalysisShriram Finance Ltd. presents a strong technical and fundamental profile, making it an attractive option for investors.
From a technical perspective, the stock exhibits numerous "Strong Bullish" signals. The one-day analysis is "Bullish," with the latest tick indicating a strong price rise. The KeltnerBand suggests "Strong Bullish" sentiment with a positive breakout pattern. The MACD (Moving Average Convergence Divergence) is "Strong Bullish," displaying a bullish crossover of the Macd and Signal lines, as well as a zero-line crossover, indicating a positive trend.
The Awesome Oscillator is "Bullish," showing a bullish reversal with the Awesome Oscillator crossing above zero. The MAChannelBand and Bollinger Bands both exhibit "Strong Bullish" signals with positive breakout patterns. The Supertrend is "Bullish" with a bullish crossover, and the ADX (Average Directional Index) is "Bullish," trending upward. The HighLowMABand also indicates "Strong Bullish" sentiment with a positive breakout pattern.
Candlestick patterns on the daily, weekly, and monthly charts are "Bullish," suggesting positive sentiment. In the weekly candlestick pattern, a "Three Outside Up" pattern has formed at a recent low level, indicating the possibility of a good bullish reversal.
In terms of resistance and support, the stock has encountered short-term and medium-term resistance levels, with top points at 1954.85 on November 2, 2023, 1921.95 on October 3, 2023, 1957.2 on September 11, 2023, and 1928.3 on August 31, 2023. Additionally, there are short-term support lines with bottom points at 1797.6 on October 26, 2023, 1820.9 on October 9, 2023, 1796.0 on August 16, 2023, and 1782.85 on July 20, 2023.
From a fundamental perspective, Shriram Finance Ltd. appears undervalued with a Price to Earnings Ratio of 10.08 and an EV to EBITDA ratio of 7.71, suggesting that the company's stock may be trading at a discount to its intrinsic value.
The company has demonstrated significant growth in its Book Value over the last three years, indicating a strong financial position. Shriram Finance Ltd. offers an Earning Yield of 9.92% and all key Trailing Twelve Months Margins have grown by 15%. The Piotroski F Score is at a stable value of 4.0, signifying sound financial health.
Annual net profit has been trending upward over the last three years, and EBITDA has continuously increased for the past three years. The company also maintains a good Return on Equity of 17.36% and a strong Net Margin of 19.95%.
Despite this, the company has given poor Returns on Assets in the last three years, which is an aspect to monitor. However, there is a short-term positive trend in total sales and net profit, with a strong jump in net sales in terms of year-over-year (YoY) growth. The company has achieved annual sales growth for three consecutive years, and quarterly sales over the last five years are trending upward. Additionally, the debt-to-equity ratio has decreased and is at its lowest level in the last five years.
In conclusion, Shriram Finance Ltd. presents a compelling investment opportunity with strong technical and fundamental indicators. The stock's bullish technical signals, coupled with its undervaluation and strong financial performance, make it an attractive choice for investors seeking potential growth and value in the market. Nevertheless, investors should remain vigilant and monitor both technical and fundamental developments for a comprehensive understanding of the stock's potential.
Go Long above 1965
Stop Loss 1809
