Cholamandalam Investment and Finance Company Limited

NSEI:CHOLAFIN Stock Report

Market Cap: ₹1.0t

Cholamandalam Investment and Finance Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 (₹1208.4) is trading above our estimate of fair value (₹525.28)

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

Key Valuation Metric

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

Key metric: As CHOLAFIN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CHOLAFIN. This is calculated by dividing CHOLAFIN's market cap by their current earnings.
What is CHOLAFIN's PE Ratio?
PE Ratio26.4x
Earnings₹38.52b
Market Cap₹1.02t

Price to Earnings Ratio vs Peers

How does CHOLAFIN's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.2x
511218 Shriram Finance
13.4x13.8%₹1.1t
MUTHOOTFIN Muthoot Finance
16.5x14.2%₹773.8b
SBICARD SBI Cards and Payment Services
29.3x20.7%₹646.6b
SUNDARMFIN Sundaram Finance
29.7x13.3%₹465.8b
CHOLAFIN Cholamandalam Investment and Finance
26.4x21.9%₹1.0t

Price-To-Earnings vs Peers: CHOLAFIN is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the peer average (22.2x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
523384 Maha Rashtra Apex
0.7xn/aUS$27.53m
No more companies available in this PE range
CHOLAFIN 26.4xIndustry Avg. 22.4xNo. of Companies10PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CHOLAFIN is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the Indian Consumer Finance industry average (21.5x).

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 Ratio26.4x
Fair PE Ratio26.8x

Price-To-Earnings vs Fair Ratio: CHOLAFIN is good value based on its Price-To-Earnings Ratio (26.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CHOLAFIN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,208.40
₹1,528.00
+26.4%
10.3%₹1,850.00₹1,089.00n/a33
Nov ’25₹1,283.20
₹1,535.58
+19.7%
10.9%₹1,850.00₹1,089.00n/a33
Oct ’25₹1,581.85
₹1,561.52
-1.3%
11.1%₹1,850.00₹1,049.00n/a33
Sep ’25₹1,455.60
₹1,514.78
+4.1%
11.6%₹1,700.00₹1,049.00n/a32
Aug ’25₹1,390.65
₹1,496.15
+7.6%
12.7%₹1,700.00₹1,049.00n/a33
Jul ’25₹1,434.60
₹1,414.56
-1.4%
11.9%₹1,660.00₹1,000.00n/a32
Jun ’25₹1,241.10
₹1,410.03
+13.6%
11.7%₹1,615.00₹1,000.00n/a32
May ’25₹1,193.30
₹1,319.48
+10.6%
10.8%₹1,530.00₹928.00n/a31
Apr ’25₹1,185.40
₹1,308.73
+10.4%
11.9%₹1,640.00₹921.00n/a30
Mar ’25₹1,095.85
₹1,320.53
+20.5%
11.6%₹1,640.00₹1,000.00n/a30
Feb ’25₹1,145.05
₹1,331.41
+16.3%
10.8%₹1,640.00₹1,006.00n/a29
Jan ’25₹1,225.35
₹1,262.54
+3.0%
9.8%₹1,425.00₹942.00n/a28
Dec ’24₹1,128.20
₹1,236.10
+9.6%
11.4%₹1,425.00₹900.00n/a30
Nov ’24₹1,149.00
₹1,217.67
+6.0%
13.2%₹1,475.00₹870.00₹1,283.2030
Oct ’24₹1,217.55
₹1,176.41
-3.4%
13.3%₹1,425.00₹870.00₹1,581.8529
Sep ’24₹1,128.85
₹1,181.87
+4.7%
13.2%₹1,425.00₹870.00₹1,455.6030
Aug ’24₹1,130.45
₹1,140.96
+0.9%
14.5%₹1,350.00₹860.00₹1,390.6528
Jul ’24₹1,142.00
₹1,051.52
-7.9%
11.2%₹1,340.00₹859.00₹1,434.6027
Jun ’24₹1,043.90
₹1,031.75
-1.2%
8.8%₹1,230.00₹859.00₹1,241.1028
May ’24₹871.10
₹873.11
+0.2%
7.4%₹1,000.00₹700.00₹1,193.3027
Apr ’24₹761.30
₹861.81
+13.2%
8.0%₹1,000.00₹700.00₹1,185.4027
Mar ’24₹766.75
₹859.61
+12.1%
7.8%₹1,000.00₹700.00₹1,095.8528
Feb ’24₹749.80
₹840.72
+12.1%
9.6%₹1,000.00₹700.00₹1,145.0529
Jan ’24₹722.90
₹824.25
+14.0%
9.3%₹940.00₹600.00₹1,225.3528
Dec ’23₹728.90
₹822.63
+12.9%
9.4%₹940.00₹600.00₹1,128.2027
Nov ’23₹709.50
₹810.25
+14.2%
9.9%₹930.00₹600.00₹1,149.0028

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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