Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India. More Details
Reasonable growth potential with acceptable track record.
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
Stable Share Price: 511243 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: 511243's weekly volatility (6%) has been stable over the past year.
7 Day Return
IN Consumer Finance
1 Year Return
IN Consumer Finance
Return vs Industry: 511243 exceeded the Indian Consumer Finance industry which returned 7.9% over the past year.
Return vs Market: 511243 exceeded the Indian Market which returned 7% over the past year.
Long-Term 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
Is Cholamandalam Investment and Finance undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 511243 (₹389.5) is trading above our estimate of fair value (₹63.01)
Significantly Below Fair Value: 511243 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 511243 is poor value based on its PE Ratio (24.2x) compared to the IN Consumer Finance industry average (11.8x).
PE vs Market: 511243 is poor value based on its PE Ratio (24.2x) compared to the Indian market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: 511243 is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: 511243 is overvalued based on its PB Ratio (3.5x) compared to the IN Consumer Finance industry average (0.6x).
How is Cholamandalam Investment and Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 511243's forecast earnings growth (25.2% per year) is above the savings rate (7.2%).
Earnings vs Market: 511243's earnings (25.2% per year) are forecast to grow faster than the Indian market (24.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 511243's revenue (11.9% per year) is forecast to grow faster than the Indian market (11.5% per year).
High Growth Revenue: 511243's revenue (11.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 511243's Return on Equity is forecast to be low in 3 years time (17.6%).
How has Cholamandalam Investment and Finance performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 511243 has high quality earnings.
Growing Profit Margin: 511243's current net profit margins (29.4%) are lower than last year (32.5%).
Past Earnings Growth Analysis
Earnings Trend: 511243's earnings have grown by 18.3% per year over the past 5 years.
Accelerating Growth: 511243's earnings growth over the past year (4.7%) is below its 5-year average (18.3% per year).
Earnings vs Industry: 511243 earnings growth over the past year (4.7%) exceeded the Consumer Finance industry -2.2%.
Return on Equity
High ROE: 511243's Return on Equity (14.4%) is considered low.
How is Cholamandalam Investment and Finance's financial position?
Financial Position Analysis
Short Term Liabilities: 511243's short term assets (₹692.2B) exceed its short term liabilities (₹3.9B).
Long Term Liabilities: 511243's short term assets (₹692.2B) exceed its long term liabilities (₹612.1B).
Debt to Equity History and Analysis
Debt Level: 511243's debt to equity ratio (671.2%) is considered high.
Reducing Debt: 511243's debt to equity ratio has increased from 605% to 671.2% over the past 5 years.
Debt Coverage: 511243's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if 511243's interest payments on its debt are well covered by EBIT.
What is Cholamandalam Investment and Finance current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 511243's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.54%).
High Dividend: 511243's dividend (0.44%) is low compared to the top 25% of dividend payers in the Indian market (2.14%).
Stability and Growth of Payments
Stable Dividend: 511243's dividend payments have been volatile in the past 10 years.
Growing Dividend: 511243's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (4.3%), 511243's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 511243's dividends in 3 years are forecast to be thoroughly covered by earnings (10% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Arun Alagappan (44 yo)
Mr. Arun Alagappan has been Additional Director at Coromandel International Limited since November 11, 2020. He has been Managing Director of Cholamandalam Investment and Finance Company Ltd. since Novembe...
CEO Compensation Analysis
Compensation vs Market: Arun's total compensation ($USD532.90K) is below average for companies of similar size in the Indian market ($USD774.23K).
Compensation vs Earnings: Arun's compensation has been consistent with company performance over the past year.
|MD & Executive Director||1yr||₹39.33m||0.12% |
|Chairman||no data||₹21.66m||0.023% |
|Independent Director||3.08yrs||₹1.78m||no data|
|Independent Director||1.33yrs||₹1.15m||no data|
|Independent Director||1.67yrs||₹1.31m||no data|
|Additional Independent Director||2.08yrs||₹1.84m||no data|
Experienced Board: 511243's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 511243 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.
Cholamandalam Investment and Finance Company Limited's company bio, employee growth, exchange listings and data sources
- Name: Cholamandalam Investment and Finance Company Limited
- Ticker: 511243
- Exchange: BSE
- Founded: 1978
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: ₹295.326b
- Shares outstanding: 819.67m
- Website: https://www.cholamandalam.com
Number of Employees
- Cholamandalam Investment and Finance Company Limited
- Dare House
- 1st Floor
- Tamil Nadu
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|511243||BSE (Mumbai Stock Exchange)||Yes||Equity Shares||IN||INR||Jul 1994|
|CHOLAFIN||NSEI (National Stock Exchange of India)||Yes||Equity Shares||IN||INR||Jul 1994|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/11/27 12:04|
|End of Day Share Price||2020/11/27 00:00|
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.