These Factors Make Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN) An Interesting Investment

I’ve been keeping an eye on Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CHOLAFIN has a lot to offer. Basically, it is a dependable dividend-paying company with a an impressive history of performance and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Cholamandalam Investment and Finance here.

Solid track record with reasonable growth potential and pays a dividend

CHOLAFIN’s outstanding revenue growth of 58% forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This is expected to flow down into an impressive return on equity of 22% over the next couple of years. Over the past year, CHOLAFIN has grown its earnings by 36%, with its most recent figure exceeding its annual average over the past five years. Not only did CHOLAFIN outperformed its past performance, its growth also exceeded the Consumer Finance industry expansion, which generated a 30% earnings growth. This is an optimistic signal for the future.

NSEI:CHOLAFIN Future Profit October 10th 18
NSEI:CHOLAFIN Future Profit October 10th 18

CHOLAFIN is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NSEI:CHOLAFIN Historical Dividend Yield October 10th 18
NSEI:CHOLAFIN Historical Dividend Yield October 10th 18

Next Steps:

For Cholamandalam Investment and Finance, there are three important aspects you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is CHOLAFIN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CHOLAFIN is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CHOLAFIN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.