Cholamandalam Investment and Finance Company Limited

NSEI:CHOLAFIN Stock Report

Market Cap: ₹996.9b

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 (₹1185.45) is trading above our estimate of fair value (₹512.28)

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 Ratio25.9x
Earnings₹38.52b
Market Cap₹996.91b

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 Average23x
511218 Shriram Finance
13.6x13.7%₹1.1t
MUTHOOTFIN Muthoot Finance
17.5x14.3%₹817.0b
SBICARD SBI Cards and Payment Services
30x20.7%₹662.0b
SUNDARMFIN Sundaram Finance
31.2x13.0%₹488.8b
CHOLAFIN Cholamandalam Investment and Finance
25.9x21.9%₹996.9b

Price-To-Earnings vs Peers: CHOLAFIN is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the peer average (23x).

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
0.6xn/aUS$25.95m
No more companies available in this PE range
CHOLAFIN 25.9xIndustry Avg. 22.5xNo. of Companies14PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CHOLAFIN is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the Indian Consumer Finance industry average (22.9x).

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 Ratio25.9x
Fair PE Ratio26.8x

Price-To-Earnings vs Fair Ratio: CHOLAFIN is good value based on its Price-To-Earnings Ratio (25.9x) 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₹1,185.45
₹1,518.12
+28.1%
10.2%₹1,850.00₹1,078.00n/a33
Dec ’25₹1,233.95
₹1,525.88
+23.7%
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₹900.00₹1,233.9530
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

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/24 05:58
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Cholamandalam Investment and Finance Company Limited is covered by 52 analysts. 31 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Raghav GargAmbit Capital
Yuvraj ChoudharyAnand Rathi Shares and Stock Brokers Limited
Siddharth PurohitAngel Broking Private Limited