SHRIRAMFIN.NS Stock Today, January 04: Record High on MUFG Capital, Upgrades
Shriram Finance share price jumped to a fresh record around Rs 1,009 on January 4 after MUFG’s USD 4.4 billion, 20% stake boosted capital and confidence. Shares of SHRIRAMFIN.NS now trade near the 52-week high of Rs 1,025.6 amid firm volumes. Management expects borrowing costs to fall by 50-100 bps, aiding net interest margins and growth. CARE’s upgrade to AAA and broker target hikes to Rs 1,100-1,140 reinforce the positive setup for the lender’s funding profile and earnings outlook.
What moved the stock today
MUFG’s USD 4.4 billion for a 20% stake lifts capital, improves global lender access, and is expected to cut the company’s cost of funds by 50-100 bps, as management indicated. That supports faster growth and margin expansion in FY26. The news, covered by New Indian Express, underpins the recent breakout in the Shriram Finance share price. Read more: source.
Price action confirms strong demand. The stock printed a 52-week high of Rs 1,025.6, with intraday range between Rs 1,007.2 and Rs 1,025.0 in the latest session. Volume was 5,264,026 versus a 20-day average of 8,208,088. One-year return stands at 36.84%, and YTD gain is 40.63%. The RSI at 78.22 flags overbought conditions, so near-term swings in the Shriram Finance share price are possible.
Valuation, growth, and balance sheet
On fundamentals, trailing EPS is Rs 52.3. The stock trades at 19.3x earnings and 3.14x book, with ROE at 17.4% and a dividend yield near 1.02%. The next results are scheduled for January 30, 2026. Investors will watch loan growth, spreads, and credit costs to judge whether current multiples are justified for the Shriram Finance share price after the MUFG-backed re-rating.
Balance-sheet strength matters for an NBFC. CARE AAA rating now signals robust resilience and better access to low-cost borrowings. Leverage is typical for the model, with debt-to-equity at 2.78 and interest coverage at 1.03. With funding costs expected to ease, management aims for net interest margin expansion and faster disbursals. The CARE AAA rating also broadens the investor base across bonds and bank lines.
Analyst targets and risks to watch
Broker sentiment has improved. Several houses raised the Shriram Finance target price to Rs 1,100-1,140, citing stronger funding, growth visibility, and the MUFG stake Shriram Finance catalyst. The Economic Times highlighted the crossing of Rs 1,000 and rising targets. Read here: source. Targets are not guarantees, but they frame upside if execution stays on track.
Risks include a slower commercial vehicle cycle, higher credit costs, or a delayed decline in market rates. Watch liquidity conditions and cash-flow gaps across maturities. Technicals are stretched, with RSI at 78.22 and ATR at 24.30, which can amplify moves around news. Short-term volatility is normal after big breakouts in the Shriram Finance share price, so position sizing and discipline are vital.
Trading levels and technical picture
Momentum remains strong. ADX at 53 signals a firm trend. MACD leads its signal by 9.01, while the Money Flow Index at 91.61 reflects heavy buying. Price hovers near the Bollinger upper band at Rs 1,038.10. In such phases, the Shriram Finance share price often consolidates in a tight range before the next move, especially when volumes stabilize.
Key levels to monitor: Rs 1,025.6 is the 52-week high and a near resistance zone. The prior close at Rs 1,019.7 is a pivot. Intraday support sits near Rs 1,007.2. Deeper supports are the 50-DMA at Rs 846.80 and the 200-DMA at Rs 696.48. Any sustained move above resistance would refocus attention on the Shriram Finance target price zone.
Final Thoughts
The Shriram Finance share price rally rests on three supports: MUFG’s strategic capital, expected 50-100 bps funding-cost relief, and a CARE AAA rating that improves market access. Valuation at 19.3x earnings with 17.4% ROE suggests investors are paying for steady growth and better margins. Near term, technicals are hot, with RSI at 78, so pullbacks would not surprise. The next catalyst is January 30, 2026 earnings. For practical tracking, watch the average cost of borrowings, net interest margin commentary, credit costs, and disbursal momentum. Also monitor bond spread trends versus peers to verify a funding advantage. If these metrics improve together, the Shriram Finance share price can stay supported even after a sharp rally. If they slip, consolidation is likely. We will follow developments and update with key data points for timely decisions.
FAQs
MUFG’s USD 4.4 billion for a 20% stake boosts capital and lender confidence. Management expects funding costs to fall by 50-100 bps, which supports growth and margins. Combined with a CARE AAA rating and solid price momentum, these factors lifted sentiment and helped the stock scale a new high.
Recent notes lifted the Shriram Finance target price to Rs 1,100-1,140, reflecting stronger funding access, improving growth visibility, and potential margin gains. Targets are directional, not promises. Track delivery on costs, spreads, and asset quality to assess how much upside remains from current levels.
The Shriram Finance share price is near its 52-week high, and RSI at 78.22 shows overbought conditions. That can lead to near-term swings. Long-term drivers look better with lower funding costs, but entries are personal. Consider risk, time horizon, and the possibility of consolidation before adding exposure.
The Q3 results on January 30, 2026 are key. Focus on average borrowing cost, net interest margin, disbursals, and credit costs. Also watch any bond issuance outcomes that confirm cheaper funding. Clear progress on these metrics would support sentiment and the durability of recent gains.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
