BSE:511243

Stock Analysis Report

Cholamandalam Investment and Finance

Executive Summary

Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India.

Snowflake

Fundamentals

Limited growth with questionable track record.


Similar Companies

Share Price & News

How has Cholamandalam Investment and Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

BSE:511243

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-10.6%

BSE:511243

-3.2%

IN Consumer Finance

-14.7%

IN Market

511243 underperformed the Consumer Finance industry which returned -3.1% over the past year.

511243 outperformed the Market in India which returned -14.6% over the past year.


Share holder returns

511243IndustryMarket
7 Day-1.7%-3.6%-2.1%
30 Day4.8%1.9%-3.9%
90 Day-12.4%-10.2%-10.1%
1 Year-9.6%-10.6%-2.5%-3.2%-12.9%-14.7%
3 Year14.9%12.5%59.3%56.0%17.7%11.5%
5 Year231.2%220.6%233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

How volatile is Cholamandalam Investment and Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cholamandalam Investment and Finance undervalued based on future cash flows and its price relative to the stock market?

16.56x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cholamandalam Investment and Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cholamandalam Investment and Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Cholamandalam Investment and Finance is overvalued based on earnings compared to the IN Consumer Finance industry average.

Cholamandalam Investment and Finance is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Cholamandalam Investment and Finance is poor value based on expected growth next year.


Price Based on Value of Assets

Cholamandalam Investment and Finance is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Cholamandalam Investment and Finance expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cholamandalam Investment and Finance's revenue is expected to grow by 16.8% yearly, however this is not considered high growth (20% yearly).

Cholamandalam Investment and Finance's earnings are expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).

Cholamandalam Investment and Finance's revenue growth is expected to exceed the India market average.

Cholamandalam Investment and Finance's earnings growth is positive but not above the India market average.

Cholamandalam Investment and Finance's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Cholamandalam Investment and Finance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Cholamandalam Investment and Finance performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cholamandalam Investment and Finance has delivered over 20% year on year earnings growth in the past 5 years.

Cholamandalam Investment and Finance's 1-year earnings growth is less than its 5-year average (24.1% vs 25.1%)

Cholamandalam Investment and Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (24.1% vs 15%).


Return on Equity

Cholamandalam Investment and Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cholamandalam Investment and Finance used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Cholamandalam Investment and Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Cholamandalam Investment and Finance's financial position?


Financial Position Analysis

Cholamandalam Investment and Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cholamandalam Investment and Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Cholamandalam Investment and Finance's level of debt (814.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (788.7% vs 814.6% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Cholamandalam Investment and Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

What is Cholamandalam Investment and Finance's current dividend yield, its reliability and sustainability?

1.29%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Cholamandalam Investment and Finance's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.65%).

Cholamandalam Investment and Finance's dividend is below the markets top 25% of dividend payers in India (2.64%).

Cholamandalam Investment and Finance has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Cholamandalam Investment and Finance only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (12.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (15.3x coverage).


Next Steps

Management

What is the CEO of Cholamandalam Investment and Finance's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average board tenure


CEO

Cholamandalam Investment and Finance has no CEO, or we have no data on them.


Board Age and Tenure

1.0yrs

Average Tenure

63yo

Average Age

The average tenure for the Cholamandalam Investment and Finance board of directors is less than 3 years, this suggests a new board.


Insider Trading

Cholamandalam Investment and Finance individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹241,719,49401 Jul 19
Ambadi Holdings Private Limited
EntityCompany
Shares875,000
Max Price₹276.25
Buy₹242,592,95001 Jul 19
Cholamandalam Financial Holdings Limited
EntityCompany
Shares875,000
Max Price₹277.25
Sell₹230,745,70910 Jun 19
M. V. Subbiah
EntityIndividual
Shares752,890
Max Price₹306.48
Buy₹490,766,38510 Jun 19
Shambho Trust
EntityCompany
Shares1,601,300
Max Price₹306.48
Buy₹238,001,62210 Jun 19
Saraswathi Trust
EntityCompany
Shares776,565
Max Price₹306.48
Sell₹3,071,99907 Jun 19
Sanjiv Sharma
EntityIndividual
Shares10,000
Max Price₹307.20
Sell₹1,531,08704 Jun 19
J Prakash
EntityIndividual
Shares5,000
Max Price₹310.00
Sell₹10,450,08830 May 19
M. V. Subbiah
EntityIndividual
Shares36,125
Max Price₹289.28
Sell₹10,431,30630 May 19
V. Bhairavi
EntityIndividual
Shares36,125
Max Price₹288.76
Sell₹10,434,18430 May 19
K S Shambhavi Trust
EntityCompany
Shares36,125
Max Price₹288.84
Sell₹2,478,50523 May 19
A. Kavitha
EntityIndividual
Shares8,750
Max Price₹283.26
Sell₹92,054,50829 Mar 19
Meenakshi Murugappan
EntityIndividual
Shares333,000
Max Price₹276.44
Buy₹6,910,99929 Mar 19
Meenakshi Murugappan Family Trust
EntityCompany
Shares25,000
Max Price₹276.44
Buy₹32,583,58629 Mar 19
M M Venkatachalam Family Trust
EntityCompany
Shares122,550
Max Price₹265.88
Buy₹92,054,50829 Mar 19
M M Murugappan Family Trust
EntityCompany
Shares333,000
Max Price₹276.44
Sell₹6,910,99929 Mar 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares25,000
Max Price₹276.44
Buy₹119,452,29304 Jan 19
Subramanian Family Trust
EntityCompany
Shares474,130
Max Price₹251.94
Sell₹11,745,44104 Jan 19
Meenakshi Murugappan
EntityIndividual
Shares46,620
Max Price₹251.94
Sell₹119,452,29304 Jan 19
Lakshmi Venkatachalam
EntityIndividual
Shares474,130
Max Price₹251.94
Sell₹119,452,29304 Jan 19
Muthiah Venkatachalam
EntityIndividual
Shares474,130
Max Price₹251.94
Sell₹11,603,09504 Jan 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares46,055
Max Price₹251.94
Buy₹131,197,73404 Jan 19
M/S. M M Muthiah Family Trust
EntityCompany
Shares520,750
Max Price₹251.94
Buy₹11,603,09504 Jan 19
M M Veerappan Family Trust
EntityCompany
Shares46,055
Max Price₹251.94
Sell₹2,972,77324 Sep 18
T.S.P. Lakshmanan
EntityIndividual
Shares11,500
Max Price₹258.50
Sell₹396,768,16021 Sep 18
Ambadi Holdings Private Limited
EntityCompany
Shares1,500,000
Max Price₹264.51
Buy₹396,768,16021 Sep 18
Cholamandalam Financial Holdings Limited
EntityCompany
Shares1,500,000
Max Price₹264.51

Ownership Breakdown


Management Team

  • Pilli Sujatha (51yo)

    VP, Compliance Officer & Company Secretary

    • Tenure: 0.0yrs
  • Arul Selvan D. (56yo)

    Executive VP & CFO

    • Tenure: 0.0yrs
  • Rohit Phadke (54yo)

    Business Head of Home Equity and Senior Vice President

    • Tenure: 0.0yrs
    • Compensation: ₹4.10m
  • V. Venkatesan (58yo)

    Head of Information Technology and Vice President

    • Tenure: 0.0yrs
    • Compensation: ₹3.64m
  • Mahesh Waikar (54yo)

    Vice President of Operations

    • Tenure: 0.0yrs
  • Shankar Subramanian (51yo)

    Chief Risk Officer and Vice President

    • Tenure: 0.0yrs
    • Compensation: ₹3.43m
  • R. Chandrasekar (54yo)

    Vice President of Human Resources

    • Tenure: 0.0yrs
    • Compensation: ₹2.56m
  • J. Raman (48yo)

    Head of Cross Sell and Associate Vice President

    • Tenure: 0.0yrs
    • Compensation: ₹2.66m
  • Arun Alagappan (43yo)

    Executive Director

    • Tenure: 2.0yrs
    • Compensation: ₹36.96m
  • Sudhir Rao

    Head of Marketing and Corporate Communications

    • Tenure: 6.3yrs

Board Members

  • Murugappan Murugappan (64yo)

    Chairman of the Board

    • Tenure: 1.1yrs
    • Compensation: ₹912.00k
  • Ashok Barat (63yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹1.24m
  • Rohan Verma (34yo)

    Independent Director

    • Tenure: 0.4yrs
    • Compensation: ₹14.00k
  • Arun Alagappan (43yo)

    Executive Director

    • Tenure: 2.0yrs
    • Compensation: ₹36.96m
  • Bhama Krishnamurthy (64yo)

    Independent Director

    • Tenure: 0.1yrs
  • N. Rajan (63yo)

    Additional Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹444.00k

Company Information

Cholamandalam Investment and Finance Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cholamandalam Investment and Finance Company Limited
  • Ticker: 511243
  • Exchange: BSE
  • Founded: 1978
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹203.977b
  • Shares outstanding: 781.82m
  • Website: https://www.cholamandalam.com

Number of Employees


Location

  • Cholamandalam Investment and Finance Company Limited
  • Dare House
  • 1st Floor
  • Chennai
  • Tamil Nadu
  • 600001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
511243BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1994
CHOLAFINNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1994

Biography

Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India. The company operates through three segments: Vehicle Finance Loans, Home E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:40
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.