Cholamandalam Investment and Finance
Market Cap
₹205.9b
Last Updated
2020/10/25 12:33 UTC
Data Sources
Company Financials +
Executive Summary
Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India. More Details
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer 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
Stable Share Price: CHOLAFIN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
6.0%
CHOLAFIN
0.7%
IN Consumer Finance
1.4%
IN Market
1 Year Return
-12.4%
CHOLAFIN
-15.7%
IN Consumer Finance
2.2%
IN Market
Return vs Industry: CHOLAFIN exceeded the Indian Consumer Finance industry which returned -15.5% over the past year.
Return vs Market: CHOLAFIN underperformed the Indian Market which returned 2.8% over the past year.
Shareholder returns
| CHOLAFIN | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.0% | 0.7% | 1.4% |
| 30 Day | 5.4% | 5.0% | 5.6% |
| 90 Day | 20.5% | 4.0% | 8.5% |
| 1 Year | -12.0%-12.4% | -11.9%-15.7% | 4.0%2.2% |
| 3 Year | 13.7%11.9% | 30.5%19.0% | -0.5%-5.3% |
| 5 Year | 107.7%102.4% | 170.8%139.8% | 41.6%31.1% |
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
1 day ago | Simply Wall St
Shareholders Are Thrilled That The Cholamandalam Investment and Finance (NSE:CHOLAFIN) Share Price Increased 102%4 weeks ago | Simply Wall St
How Many Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN) Shares Have Insiders Sold, In The Last Year?1 month ago | Simply Wall St
Is Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN) Popular Amongst Institutions?Valuation
Is Cholamandalam Investment and Finance undervalued compared to its fair value and its price relative to the market?
17.11x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CHOLAFIN (₹251.5) is trading above our estimate of fair value (₹94.69)
Significantly Below Fair Value: CHOLAFIN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CHOLAFIN is poor value based on its PE Ratio (17.1x) compared to the IN Consumer Finance industry average (11.4x).
PE vs Market: CHOLAFIN is poor value based on its PE Ratio (17.1x) compared to the Indian market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: CHOLAFIN is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: CHOLAFIN is overvalued based on its PB Ratio (2.5x) compared to the IN Consumer Finance industry average (0.6x).
Next Steps
Future Growth
How is Cholamandalam Investment and Finance forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
25.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CHOLAFIN's forecast earnings growth (25.8% per year) is above the savings rate (7.2%).
Earnings vs Market: CHOLAFIN's earnings (25.8% per year) are forecast to grow slower than the Indian market (25.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CHOLAFIN's revenue (11% per year) is forecast to grow slower than the Indian market (11.4% per year).
High Growth Revenue: CHOLAFIN's revenue (11% 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 (14.8%).
Next Steps
Past Performance
How has Cholamandalam Investment and Finance performed over the past 5 years?
19.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CHOLAFIN has high quality earnings.
Growing Profit Margin: CHOLAFIN's current net profit margins (28%) are lower than last year (33.9%).
Past Earnings Growth Analysis
Earnings Trend: CHOLAFIN's earnings have grown by 19.4% per year over the past 5 years.
Accelerating Growth: CHOLAFIN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CHOLAFIN had negative earnings growth (-5%) over the past year, making it difficult to compare to the Consumer Finance industry average (-8%).
Return on Equity
High ROE: CHOLAFIN's Return on Equity (14.3%) is considered low.
Next Steps
Financial Health
How is Cholamandalam Investment and Finance's financial position?
Financial Position Analysis
Short Term Liabilities: CHOLAFIN's short term assets (₹631.9B) exceed its short term liabilities (₹163.7B).
Long Term Liabilities: CHOLAFIN's short term assets (₹631.9B) exceed its long term liabilities (₹394.8B).
Debt to Equity History and Analysis
Debt Level: CHOLAFIN's debt to equity ratio (670.8%) is considered high.
Reducing Debt: CHOLAFIN's debt to equity ratio has increased from 612.5% to 670.8% 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
Next Steps
Dividend
What is Cholamandalam Investment and Finance current dividend yield, its reliability and sustainability?
0.68%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CHOLAFIN's dividend (0.68%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).
High Dividend: CHOLAFIN's dividend (0.68%) is low compared to the top 25% of dividend payers in the Indian market (2.28%).
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.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (11.6%), CHOLAFIN's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CHOLAFIN's dividends in 3 years are forecast to be thoroughly covered by earnings (11.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average board tenure
CEO
Arun Alagappan (44 yo)
0.92
Tenure
₹39,333,000
Compensation
Mr. Arun Alagappan has been Managing Director of Cholamandalam Investment and Finance Company Ltd. since November 15, 2019. Mr. Alagappan is a Promoter and a member of the Murugappa family. Mr. Alagappan s ...
CEO Compensation Analysis
Compensation vs Market: Arun's total compensation ($USD532.81K) is below average for companies of similar size in the Indian market ($USD775.42K).
Compensation vs Earnings: Arun's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 0.92yr | ₹39.33m | 0.12% ₹ 238.6m | |
| President | 0.75yr | ₹10.23m | 0.014% ₹ 28.5m | |
| Chairman of the Board | 2.25yrs | ₹1.50m | 0.0041% ₹ 8.5m | |
| Independent Director | 3yrs | ₹1.78m | no data | |
| Independent Director | 1.25yrs | ₹1.15m | no data | |
| Independent Director | 1.58yrs | ₹1.31m | no data | |
| Additional Independent Director | 2yrs | ₹1.84m | no data |
2.0yrs
Average Tenure
64yo
Average Age
Experienced Board: CHOLAFIN's board of directors are not considered experienced ( 2 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 been diluted in the past year, with total shares outstanding growing by 4.8%.
Top Shareholders
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: CHOLAFIN
- Exchange: NSEI
- Founded: 1978
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: ₹205.895b
- Shares outstanding: 819.65m
- 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
| 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/25 12:33 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/03/31 |
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.