NSEI:CHOLAFIN

Stock Analysis Report

Cholamandalam Investment and Finance

Executive Summary

Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India.

Snowflake

Fundamentals

Limited growth with questionable track record.


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


Market Performance


7 Day Return

6.5%

CHOLAFIN

3.2%

IN Consumer Finance

3.8%

IN Market


1 Year Return

35.8%

CHOLAFIN

48.8%

IN Consumer Finance

6.0%

IN Market

Return vs Industry: CHOLAFIN underperformed the Indian Consumer Finance industry which returned 48.8% over the past year.

Return vs Market: CHOLAFIN exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

CHOLAFINIndustryMarket
7 Day6.5%3.2%3.8%
30 Day4.2%6.8%2.9%
90 Day18.7%15.7%2.9%
1 Year37.3%35.8%49.8%48.8%8.2%6.0%
3 Year27.8%25.1%83.5%79.7%23.0%16.7%
5 Year222.0%211.7%271.4%254.9%43.6%30.0%

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

Valuation

Is Cholamandalam Investment and Finance undervalued compared to its fair value and its price relative to the market?

19.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHOLAFIN (₹302.5) is trading above our estimate of fair value (₹140.95)

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


Price To Earnings Ratio

PE vs Industry: CHOLAFIN is poor value based on its PE Ratio (19.2x) compared to the Consumer Finance industry average (13.3x).

PE vs Market: CHOLAFIN is poor value based on its PE Ratio (19.2x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CHOLAFIN is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: CHOLAFIN is overvalued based on its PB Ratio (3.8x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

How is Cholamandalam Investment and Finance forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHOLAFIN's forecast earnings growth (15.6% per year) is above the savings rate (7.6%).

Earnings vs Market: CHOLAFIN's earnings (15.6% per year) are forecast to grow slower than the Indian market (18% per year).

High Growth Earnings: CHOLAFIN's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHOLAFIN's revenue (16.7% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: CHOLAFIN's revenue (16.7% 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 (19.8%).


Next Steps

Past Performance

How has Cholamandalam Investment and Finance performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CHOLAFIN's earnings have grown significantly by 25.1% per year over the past 5 years.

Accelerating Growth: CHOLAFIN's earnings growth over the past year (24.1%) is below its 5-year average (25.1% per year).

Earnings vs Industry: CHOLAFIN earnings growth over the past year (24.1%) exceeded the Consumer Finance industry 15%.


Return on Equity

High ROE: CHOLAFIN's Return on Equity (19.8%) is considered low.


Return on Assets

ROA vs Industry: CHOLAFIN's Return on Assets is below or equal to the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CHOLAFIN's Return on Capital Employed to determine if it has improved over the past 3 years.


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 1.123020x 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?

0.43%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.4%industryaverage0.5%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CHOLAFIN's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: CHOLAFIN's dividend (0.43%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: CHOLAFIN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CHOLAFIN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.3%), CHOLAFIN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHOLAFIN's dividends in 3 years are forecast to be thoroughly covered by earnings (6.2% payout ratio).


Next Steps

Management

What is the CEO of Cholamandalam Investment and Finance's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average board tenure


CEO

Cholamandalam Investment and Finance has no CEO, or we have no data on them.


Board Age and Tenure

1.1yrs

Average Tenure

63yo

Average Age

Experienced Board: CHOLAFIN's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CHOLAFIN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹11,167,99701 Oct 19
Rohit Phadke
EntityIndividual
Role
Senior Key Executive
Business Head of Home Equity and Senior Vice President
Shares35,000
Max Price₹319.11
Sell₹1,142,02201 Oct 19
Mahesh Waikar
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares3,655
Max Price₹317.00
Sell₹12,348,13701 Oct 19
R. Chandrasekar
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares40,000
Max Price₹308.70
Sell₹1,298,71201 Oct 19
Narendra N.
EntityIndividual
Shares4,202
Max Price₹309.07
Sell₹1,590,74226 Sep 19
Babu V.
EntityIndividual
Shares5,275
Max Price₹309.26
Sell₹241,719,49401 Jul 19
Ambadi Holdings Private Limited
EntityCompany
Shares875,000
Max Price₹276.25
Buy₹242,592,95001 Jul 19
Cholamandalam Financial Holdings Limited
EntityCompany
Shares875,000
Max Price₹277.25
Sell₹230,745,70910 Jun 19
M. V. Subbiah
EntityIndividual
Shares752,890
Max Price₹306.48
Buy₹238,001,62210 Jun 19
Saraswathi Trust
EntityCompany
Shares776,565
Max Price₹306.48
Buy₹490,766,38510 Jun 19
Shambho Trust
EntityCompany
Shares1,601,300
Max Price₹306.48
Sell₹3,071,99907 Jun 19
Sanjiv Sharma
EntityIndividual
Shares10,000
Max Price₹307.20
Sell₹1,531,08704 Jun 19
J Prakash
EntityIndividual
Shares5,000
Max Price₹310.00
Sell₹10,450,08830 May 19
M. V. Subbiah
EntityIndividual
Shares36,125
Max Price₹289.28
Sell₹10,431,30630 May 19
V. Bhairavi
EntityIndividual
Shares36,125
Max Price₹288.76
Sell₹10,434,18430 May 19
K S Shambhavi Trust
EntityCompany
Shares36,125
Max Price₹288.84
Sell₹2,478,50523 May 19
A. Kavitha
EntityIndividual
Shares8,750
Max Price₹283.26
Buy₹32,583,58629 Mar 19
M M Venkatachalam Family Trust
EntityCompany
Shares122,550
Max Price₹265.88
Sell₹92,054,50829 Mar 19
Meenakshi Murugappan
EntityIndividual
Shares333,000
Max Price₹276.44
Sell₹6,910,99929 Mar 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares25,000
Max Price₹276.44
Buy₹6,910,99929 Mar 19
Meenakshi Murugappan Family Trust
EntityCompany
Shares25,000
Max Price₹276.44
Buy₹92,054,50829 Mar 19
M M Murugappan Family Trust
EntityCompany
Shares333,000
Max Price₹276.44
Buy₹11,603,09504 Jan 19
M M Veerappan Family Trust
EntityCompany
Shares46,055
Max Price₹251.94
Sell₹11,745,44104 Jan 19
Meenakshi Murugappan
EntityIndividual
Shares46,620
Max Price₹251.94
Sell₹119,452,29304 Jan 19
Lakshmi Venkatachalam
EntityIndividual
Shares474,130
Max Price₹251.94
Sell₹119,452,29304 Jan 19
Muthiah Venkatachalam
EntityIndividual
Shares474,130
Max Price₹251.94
Sell₹11,603,09504 Jan 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares46,055
Max Price₹251.94
Buy₹131,197,73404 Jan 19
M/S. M M Muthiah Family Trust
EntityCompany
Shares520,750
Max Price₹251.94
Buy₹119,452,29304 Jan 19
Subramanian Family Trust
EntityCompany
Shares474,130
Max Price₹251.94

Ownership Breakdown


Management Team

  • Pilli Sujatha (51yo)

    VP, Compliance Officer & Company Secretary

    • Tenure: 0yrs
  • Arul Selvan D. (56yo)

    Executive VP & CFO

    • Tenure: 0yrs
  • Rohit Phadke (54yo)

    Business Head of Home Equity and Senior Vice President

    • Tenure: 0yrs
    • Compensation: ₹4.10m
  • V. Venkatesan (58yo)

    Head of Information Technology and Vice President

    • Tenure: 0yrs
    • Compensation: ₹3.64m
  • Mahesh Waikar (54yo)

    Vice President of Operations

    • Tenure: 0yrs
  • Shankar Subramanian (51yo)

    Chief Risk Officer and Vice President

    • Tenure: 0yrs
    • Compensation: ₹3.43m
  • R. Chandrasekar (54yo)

    Vice President of Human Resources

    • Tenure: 0yrs
    • Compensation: ₹2.56m
  • J. Raman (48yo)

    Head of Cross Sell and Associate Vice President

    • Tenure: 0yrs
    • Compensation: ₹2.66m
  • Arun Alagappan (43yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: ₹36.96m
  • Sudhir Rao

    Head of Marketing and Corporate Communications

    • Tenure: 6.5yrs

Board Members

  • Murugappan Murugappan (64yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: ₹912.00k
  • Ashok Barat (63yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: ₹1.24m
  • Rohan Verma (34yo)

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: ₹14.00k
  • Arun Alagappan (43yo)

    Executive Director

    • Tenure: 2.2yrs
    • Compensation: ₹36.96m
  • Bhama Krishnamurthy (64yo)

    Independent Director

    • Tenure: 0.3yrs
  • N. Rajan (63yo)

    Additional Independent Director

    • Tenure: 1yrs
    • Compensation: ₹444.00k

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: ₹236.000b
  • Shares outstanding: 781.85m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
511243BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1994
CHOLAFINNSEI (National Stock Exchange of India)YesEquity SharesININRJul 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 E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:47
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.