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?
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?
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.
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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.
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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.
Top Shareholders
Company Information
Cholamandalam Investment and Finance Company Limited's employee growth, exchange listings and data sources
Key Information
Name: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited
Dare House
1st Floor
Chennai
Tamil Nadu
600001
India
Listings
Company Analysis and Financial Data Status
All financial data provided by Standard & Poor's Capital IQ.
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
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.