Shriram Finance has been quietly turning into a monster move over the last few months.
Since October, the stock is up 50%+, and today’s ~4% jump is just adding fuel to an already strong trend. The news flow explains a lot of this strength – strong disbursement growth, improving asset quality, stable NIMs and continued confidence around the merger synergies playing out well. The Street seems to be getting more comfortable with earnings visibility again, and that’s clearly reflecting in price.
Looking at the chart, it’s a textbook trend move. Clean higher highs and higher lows since the October breakout, very shallow pullbacks, and price hugging the upper range instead of giving any deep retracement. Even now, it’s breaking into fresh highs rather than stalling, which usually tells you buyers are still in control.
This is one of those stocks where trying to “wait for a big dip” just hasn’t worked for months. As long as it holds above the recent breakout zone, the trend looks intact.Curious how others are playing this - riding the trend or waiting for some exhaustion signs before getting involved?