Cholamandalam Investment and Finance (NSEI:CHOLAFIN) - Share price, News & Analysis

CHOLAFIN fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	5/6
Financial Health	2/6
Dividends	2/6

CHOLAFIN Stock Overview

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

Rewards

Earnings are forecast to grow 17.76% per year

Earnings grew by 41.6% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Cholamandalam Investment and Finance Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cholamandalam Investment and Finance
Historical stock prices
Current Share Price	₹647.75
52 Week High	₹768.00
52 Week Low	₹469.25
Beta	0.98
1 Month Change	2.86%
3 Month Change	-11.54%
1 Year Change	21.78%
3 Year Change	126.76%
5 Year Change	188.09%
Change since IPO	2,044.16%

Recent News & Updates

May 30

Here's Why I Think Cholamandalam Investment and Finance (NSE:CHOLAFIN) Is An Interesting Stock

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

May 08

Cholamandalam Investment and Finance (NSE:CHOLAFIN) Has Affirmed Its Dividend Of ₹0.70

The board of Cholamandalam Investment and Finance Company Limited ( NSE:CHOLAFIN ) has announced that it will pay a...

Shareholder Returns

	CHOLAFIN	IN Consumer Finance	IN Market
7D	1.0%	3.5%	2.3%
1Y	21.8%	-10.2%	-0.9%

Return vs Industry: CHOLAFIN exceeded the Indian Consumer Finance industry which returned -11.9% over the past year.

Return vs Market: CHOLAFIN exceeded the Indian Market which returned -1.7% over the past year.

Price Volatility

Is CHOLAFIN's price volatile compared to industry and market?
CHOLAFIN volatility
CHOLAFIN Average Weekly Movement	6.4%
Consumer Finance Industry Average Movement	7.3%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: CHOLAFIN is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CHOLAFIN's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1978	7,620	n/a	https://www.cholamandalam.com

Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India. The company operates through Vehicle Finance Loans, Loan Against Property, Home Loans, and Other loans segments. It offers two and three wheeler loans, commercial vehicle loans, tractor loans, car and MUV loans, and construction equipment loans, as well as loans to automobile dealers; loans against properties; home loans; loans for the purchase of resale and new flats, independent houses, and plots; ready to occupy homes; balance transfer facility for existing home loans; home equity loans; business loans for micro, and small and medium enterprises; rural and agri-loans; and refinance against existing vehicles.

Cholamandalam Investment and Finance Fundamentals Summary

How do Cholamandalam Investment and Finance's earnings and revenue compare to its market cap?
CHOLAFIN fundamental statistics
Market Cap	₹532.19b
Earnings (TTM)	₹21.54b
Revenue (TTM)	₹58.43b

24.7x

P/E Ratio

9.1x

P/S Ratio

Is CHOLAFIN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHOLAFIN income statement (TTM)
Revenue	₹58.43b
Cost of Revenue	₹0
Gross Profit	₹58.43b
Other Expenses	₹36.90b
Earnings	₹21.54b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	26.22
Gross Margin	100.00%
Net Profit Margin	36.86%
Debt/Equity Ratio	589.2%

How did CHOLAFIN perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

8%

Payout Ratio

Does CHOLAFIN pay a reliable dividends?

See CHOLAFIN dividend history and benchmarks

When do you need to buy CHOLAFIN by to receive an upcoming dividend?
Cholamandalam Investment and Finance dividend dates
Ex Dividend Date	Jul 21 2022
Dividend Pay Date	Aug 27 2022
Days until Ex dividend	26 days
Days until Dividend pay date	63 days

Does CHOLAFIN pay a reliable dividends?

See CHOLAFIN dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is CHOLAFIN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CHOLAFIN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CHOLAFIN. This is calculated by dividing CHOLAFIN's market cap by their current preferred multiple.
What is CHOLAFIN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹532.19b

CHOLAFIN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does CHOLAFIN's PE Ratio compare to its peers?

CHOLAFIN PE Ratio vs Peers

The above table shows the PE ratio for CHOLAFIN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.8x

Forward PE

Price-To-Earnings vs Peers: CHOLAFIN is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

How does CHOLAFIN's PE Ratio compare vs other companies in the Indian Consumer Finance Industry?

Price-To-Earnings vs Industry: CHOLAFIN is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the Indian Consumer Finance industry average (24x)

Price to Earnings Ratio vs Fair Ratio

What is CHOLAFIN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CHOLAFIN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.7x
Fair PE Ratio	22.8x

Price-To-Earnings vs Fair Ratio: CHOLAFIN is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).

Share Price vs Fair Value

What is the Fair Price of CHOLAFIN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHOLAFIN (₹647.75) is trading above our estimate of fair value (₹349.39)

Significantly Below Fair Value: CHOLAFIN is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: CHOLAFIN is poor value based on its PEG Ratio (1.4x)

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Future Growth

How is Cholamandalam Investment and Finance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHOLAFIN's forecast earnings growth (17.8% per year) is above the savings rate (6.7%).

Earnings vs Market: CHOLAFIN's earnings (17.8% per year) are forecast to grow faster than the Indian market (17.5% per year).

High Growth Earnings: CHOLAFIN's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHOLAFIN's revenue (14% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: CHOLAFIN's revenue (14% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CHOLAFIN's Return on Equity is forecast to be low in 3 years time (19.5%).

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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

16.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CHOLAFIN has high quality earnings.

Growing Profit Margin: CHOLAFIN's current net profit margins (36.9%) are higher than last year (30.3%).

Past Earnings Growth Analysis

Earnings Trend: CHOLAFIN's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: CHOLAFIN's earnings growth over the past year (41.6%) exceeds its 5-year average (16.6% per year).

Earnings vs Industry: CHOLAFIN earnings growth over the past year (41.6%) exceeded the Consumer Finance industry 10.4%.

Return on Equity

High ROE: CHOLAFIN's Return on Equity (18.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Cholamandalam Investment and Finance's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CHOLAFIN's short term assets (₹793.8B) exceed its short term liabilities (₹10.2B).

Long Term Liabilities: CHOLAFIN's short term assets (₹793.8B) exceed its long term liabilities (₹696.9B).

Debt to Equity History and Analysis

Debt Level: CHOLAFIN's net debt to equity ratio (551.1%) is considered high.

Reducing Debt: CHOLAFIN's debt to equity ratio has increased from 562.1% to 589.2% over the past 5 years.

Debt Coverage: CHOLAFIN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CHOLAFIN's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.31%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CHOLAFIN's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: CHOLAFIN's dividend (0.31%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).

Stability and Growth of Payments

Stable Dividend: CHOLAFIN's dividend payments have been volatile in the past 10 years.

Growing Dividend: CHOLAFIN's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7.6%), CHOLAFIN's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: CHOLAFIN is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average board tenure

CEO

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

Board Members

Experienced Board: CHOLAFIN's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31