Shares of Shriram Finance Ltd. traded 2.16 percent down at Rs 2431.0 at 12:53 PM (IST) on Monday, even as BSE benchmark Sensex dropped 521.69 points to 73723.21.
The stock had closed at Rs 2484.85 in the previous session. The stock quoted a 52-week high price of Rs 2605.0 and a 52-week low of Rs 1291.75, respectively. As per BSE data, total traded volume on the counter till 12:53 PM (IST) stood at 8011 shares with a turnover of Rs 1.95 crore.
At the prevailing price, the stock traded at 13.74 times its trailing 12-month EPS of Rs 176.86 per share and 1.08 times its price-to-book value, BSE data showed.
A higher P/E ratio shows investors are willing to pay a higher share price today because of growth expectations in the future.
The price-to-book value indicates the inherent value of a company and reflects the price investors are ready to pay even for no growth in the business. The stock’s Beta value, which measures its volatility in relation to the broader market, stood at 1.69.
Shareholding Details
Promoters held 23.42 percent stake in the company as of 31-Dec-2023, while FIIs owned 53.97 percent and DIIs 10.97 percent.
Technicals
On the technical charts, the relative strength index (RSI) of the stock stood at 49.59. The RSI oscillates between zero and 100. Traditionally, it is considered an overbought condition when the RSI value is above 70 and an oversold condition when it is below 30. Chartists say, that RSI should not be seen in isolation, as it may not be sufficient to take a trading call, just the way fundamental analysts cannot give a buy or sell recommendation using a single valuation ratio.
The article originally appeared on The Economic Times.