Cholamandalam Investment and Finance
Market Cap
₹133.5b
Last Updated
2020/03/30 13:06 UTC
Data Sources
Company Financials +
Executive Summary
Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India.
Snowflake Analysis
Acceptable track record with moderate growth potential.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
18.0%
CHOLAFIN
-10.6%
IN Consumer Finance
-2.9%
IN Market
1 Year Return
-46.9%
CHOLAFIN
-26.9%
IN Consumer Finance
-29.3%
IN Market
Return vs Industry: CHOLAFIN underperformed the Indian Consumer Finance industry which returned -26.9% over the past year.
Return vs Market: CHOLAFIN underperformed the Indian Market which returned -29.3% over the past year.
Shareholder returns
| CHOLAFIN | Industry | Market | |
|---|---|---|---|
| 7 Day | 18.0% | -10.6% | -2.9% |
| 30 Day | -47.6% | -41.5% | -23.7% |
| 90 Day | -47.5% | -39.0% | -28.6% |
| 1 Year | -46.5%-46.9% | -26.2%-26.9% | -27.9%-29.3% |
| 3 Year | -16.1%-17.5% | 24.0%21.2% | -15.4%-20.0% |
| 5 Year | 38.4%34.6% | 104.9%95.5% | -3.3%-8.3% |
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
2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Cholamandalam Investment and Finance Company Limited's (NSE:CHOLAFIN) P/E Ratio4 weeks ago | Simply Wall St
Should You Be Adding Cholamandalam Investment and Finance (NSE:CHOLAFIN) To Your Watchlist Today?Valuation
Is Cholamandalam Investment and Finance undervalued compared to its fair value and its price relative to the market?
9.57x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CHOLAFIN (₹160.5) is trading above our estimate of fair value (₹90.38)
Significantly Below Fair Value: CHOLAFIN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CHOLAFIN is good value based on its PE Ratio (9.6x) compared to the Consumer Finance industry average (10.4x).
PE vs Market: CHOLAFIN is poor value based on its PE Ratio (9.6x) compared to the Indian market (9.2x).
Price to Earnings Growth Ratio
PEG Ratio: CHOLAFIN is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: CHOLAFIN is overvalued based on its PB Ratio (1.8x) 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?
19.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CHOLAFIN's forecast earnings growth (19% per year) is above the savings rate (6.5%).
Earnings vs Market: CHOLAFIN's earnings (19% per year) are forecast to grow slower than the Indian market (19.6% per year).
High Growth Earnings: CHOLAFIN's earnings are forecast to grow, but not significantly.
Revenue vs Market: CHOLAFIN's revenue (14.4% per year) is forecast to grow faster than the Indian market (8.9% per year).
High Growth Revenue: CHOLAFIN's revenue (14.4% 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 high in 3 years time (20.2%)
Next Steps
Past Performance
How has Cholamandalam Investment and Finance performed over the past 5 years?
23.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CHOLAFIN has high quality earnings.
Growing Profit Margin: CHOLAFIN's current net profit margins (32.5%) are higher than last year (32.3%).
Past Earnings Growth Analysis
Earnings Trend: CHOLAFIN's earnings have grown significantly by 23.1% per year over the past 5 years.
Accelerating Growth: CHOLAFIN's earnings growth over the past year (15.6%) is below its 5-year average (23.1% per year).
Earnings vs Industry: CHOLAFIN earnings growth over the past year (15.6%) underperformed the Consumer Finance industry 15.6%.
Return on Equity
High ROE: CHOLAFIN's Return on Equity (19.3%) is considered low.
Next Steps
Financial Health
How is Cholamandalam Investment and Finance's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: CHOLAFIN has a low level of unsold assets or inventory.
Debt Coverage by Assets: CHOLAFIN's debt is covered by short term assets (assets are 1.1x debt).
Financial Institutions Analysis
Asset Level: CHOLAFIN's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if CHOLAFIN has a sufficient allowance for bad loans.
Low Risk Liabilities: CHOLAFIN reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if CHOLAFIN has an acceptable proportion of non-loan assets held.
Low Risk Deposits: CHOLAFIN has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if CHOLAFIN has an appropriate level of bad loans.
Next Steps
Dividend
What is Cholamandalam Investment and Finance's current dividend yield, its reliability and sustainability?
1.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CHOLAFIN's dividend (1.06%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).
High Dividend: CHOLAFIN's dividend (1.06%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).
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 (7.8%), CHOLAFIN's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average board tenure
CEO
Arun Alagappan (43yo)
0.33
Tenure
₹36,961,000
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 ($USD490.37K) is about average for companies of similar size in the Indian market ($USD651.61K).
Compensation vs Earnings: Arun's compensation has increased by more than 20% in the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 0.33yr | ₹36.96m | 0.12% ₹160.2m | |
| President | 0.17yr | ₹2.85m | 0.010% ₹13.5m | |
| Chairman of the Board | 1.67yrs | ₹912.00k | 0.0027% ₹3.6m | |
| Independent Director | 2.42yrs | ₹1.24m | no data | |
| Independent Director | 1yr | ₹14.00k | no data | |
| Independent Director | 0.67yr | no data | no data | |
| Additional Independent Director | 1.42yrs | ₹444.00k | no data |
1.4yrs
Average Tenure
63yo
Average Age
Experienced Board: CHOLAFIN's board of directors are not considered experienced ( 1.4 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: CHOLAFIN insiders have sold more shares than they have bought 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 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: ₹133.459b
- Shares outstanding: 791.34m
- 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 Equity, and Other Loans. It offers two wheeler and 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 for self-construction, loans for the purchase of plots and ready to occupy homes, and balance transfer facility for existing home loans; home equity loans; business loans for small and medium enterprises; rural and agri-loans; and refinance against existing vehicles. The company also provides wealth management services that cover mutual funds, fixed deposits, bonds and debentures, and life and general insurance, as well as PMS, IPO, ETF, and SIP services; investment advisory services; and stock broking services for mutual funds, stocks and derivatives, exchange traded funds, and bonds, as well as Internet broking, demat, and depository participant services. As of March 31, 2019 it operated through a network of 911 branches. The company was founded in 1978 and is headquartered in Chennai, India.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 13:06 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.