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Cholamandalam Investment and Finance

NSEI:CHOLAFIN
Snowflake Description

Questionable track record with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CHOLAFIN
NSEI
₹228B
Market Cap
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  3. Diversified Financials
Company description

Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India. The last earnings update was 50 days ago. More info.


Add to Portfolio Compare Print
  • Cholamandalam Investment and Finance has significant price volatility in the past 3 months.
CHOLAFIN Share Price and Events
7 Day Returns
-1.4%
NSEI:CHOLAFIN
-19.3%
IN Consumer Finance
-1.3%
IN Market
1 Year Returns
-9.6%
NSEI:CHOLAFIN
15.1%
IN Consumer Finance
-1.6%
IN Market
CHOLAFIN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cholamandalam Investment and Finance (CHOLAFIN) -1.4% 7.8% 4.8% -9.6% 58.8% 287.1%
IN Consumer Finance -19.3% 11.3% 9.7% 15.1% 108.3% 279.8%
IN Market -1.3% 4.7% 0.7% -1.6% 32.8% 41.8%
1 Year Return vs Industry and Market
  • CHOLAFIN underperformed the Consumer Finance industry which returned 15.1% over the past year.
  • CHOLAFIN underperformed the Market in India which returned -1.6% over the past year.
Price Volatility
CHOLAFIN
Industry
5yr Volatility vs Market

CHOLAFIN Value

 Is Cholamandalam Investment and Finance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cholamandalam Investment and Finance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cholamandalam Investment and Finance.

NSEI:CHOLAFIN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 15 analysts.
= Stable Book Value * Return on Equity
= ₹107.18 * 20.6%
₹22.08
Book Value of Equity per Share Weighted future Book Value estimates from 13 analysts. ₹107.18
Discount Rate (Cost of Equity) See below 20.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:CHOLAFIN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.693 (1 + (1- 35%) (221.66%))
1.463
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.46
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.463 * 8.6%)
20.13%

Discounted Cash Flow Calculation for NSEI:CHOLAFIN using Excess Returns Model Model

The calculations below outline how an intrinsic value for Cholamandalam Investment and Finance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NSEI:CHOLAFIN Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (20.6% – 20.13%) * ₹107.18)
₹0.50
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹0.50 / (20.13% - 7.55%)
₹3.98
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹107.18 + ₹3.98
₹111.16
NSEI:CHOLAFIN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:CHOLAFIN represents 0.99828x of BSE:511243
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99828x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 111.16 x 0.99828
₹110.97
Value per share (INR) From above. ₹110.97
Current discount Discount to share price of ₹291.35
= -1 x (₹291.35 - ₹110.97) / ₹110.97
-162.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Cholamandalam Investment and Finance is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cholamandalam Investment and Finance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cholamandalam Investment and Finance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:CHOLAFIN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹15.31
BSE:511243 Share Price ** BSE (2019-06-14) in INR ₹291.85
India Consumer Finance Industry PE Ratio Median Figure of 76 Publicly-Listed Consumer Finance Companies 21.43x
India Market PE Ratio Median Figure of 2,824 Publicly-Listed Companies 15.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cholamandalam Investment and Finance.

NSEI:CHOLAFIN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:511243 Share Price ÷ EPS (both in INR)

= 291.85 ÷ 15.31

19.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cholamandalam Investment and Finance is good value based on earnings compared to the IN Consumer Finance industry average.
  • Cholamandalam Investment and Finance is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Cholamandalam Investment and Finance's expected growth come at a high price?
Raw Data
NSEI:CHOLAFIN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
13.3%per year
India Consumer Finance Industry PEG Ratio Median Figure of 14 Publicly-Listed Consumer Finance Companies 0.82x
India Market PEG Ratio Median Figure of 521 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:CHOLAFIN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.06x ÷ 13.3%

1.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cholamandalam Investment and Finance is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cholamandalam Investment and Finance's assets?
Raw Data
NSEI:CHOLAFIN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹79.42
BSE:511243 Share Price * BSE (2019-06-14) in INR ₹291.85
India Consumer Finance Industry PB Ratio Median Figure of 83 Publicly-Listed Consumer Finance Companies 0.9x
India Market PB Ratio Median Figure of 3,653 Publicly-Listed Companies 1x
NSEI:CHOLAFIN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:511243 Share Price ÷ Book Value per Share (both in INR)

= 291.85 ÷ 79.42

3.67x

* Primary Listing of Cholamandalam Investment and Finance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cholamandalam Investment and Finance is overvalued based on assets compared to the IN Consumer Finance industry average.
X
Value checks
We assess Cholamandalam Investment and Finance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Cholamandalam Investment and Finance has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CHOLAFIN Future Performance

 How is Cholamandalam Investment and Finance expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cholamandalam Investment and Finance expected to grow at an attractive rate?
  • Cholamandalam Investment and Finance's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Cholamandalam Investment and Finance's earnings growth is positive but not above the India market average.
  • Cholamandalam Investment and Finance's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:CHOLAFIN Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:CHOLAFIN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 13.3%
NSEI:CHOLAFIN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 14.1%
India Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
India Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 20%
India Market Earnings Growth Rate Market Cap Weighted Average 16.6%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:CHOLAFIN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:CHOLAFIN Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 61,843 19,467 1
2022-03-31 54,281 18,396 1
2021-03-31 49,351 16,704 11
2020-03-31 41,784 14,128 11
NSEI:CHOLAFIN Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 35,207 11,981
2018-03-31 28,605 -75,921 9,754
2017-12-31 26,405 9,070
2017-09-30 24,350 8,201
2017-06-30 22,833 7,597
2017-03-31 21,627 -14,676 7,194
2016-12-31 21,027 6,895
2016-09-30 20,267 6,742
2016-06-30 19,029 6,282

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cholamandalam Investment and Finance's earnings are expected to grow by 13.3% yearly, however this is not considered high growth (20% yearly).
  • Cholamandalam Investment and Finance's revenue is expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:CHOLAFIN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Cholamandalam Investment and Finance Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:CHOLAFIN Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31 24.80 24.80 24.80 1.00
2022-03-31 23.56 25.32 21.80 2.00
2021-03-31 21.36 22.84 18.80 11.00
2020-03-31 18.07 18.94 16.20 12.00
NSEI:CHOLAFIN Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 15.31
2018-03-31 12.48
2017-12-31 11.61
2017-09-30 10.50
2017-06-30 9.72
2017-03-31 9.21
2016-12-31 8.87
2016-09-30 8.68
2016-06-30 8.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cholamandalam Investment and Finance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cholamandalam Investment and Finance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cholamandalam Investment and Finance has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CHOLAFIN Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cholamandalam Investment and Finance's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cholamandalam Investment and Finance has delivered over 20% year on year earnings growth in the past 5 years.
  • Cholamandalam Investment and Finance's 1-year earnings growth is less than its 5-year average (22.8% vs 25.8%)
  • Cholamandalam Investment and Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (22.8% vs 15.7%).
Earnings and Revenue History
Cholamandalam Investment and Finance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cholamandalam Investment and Finance Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:CHOLAFIN Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 35,206.90 11,980.60 6,046.80
2018-03-31 28,605.01 9,754.24 5,995.77
2017-12-31 26,405.18 9,069.60 5,528.55
2017-09-30 24,350.28 8,201.50 5,238.25
2017-06-30 22,832.78 7,596.60 5,031.15
2017-03-31 21,626.71 7,194.30 4,594.35
2016-12-31 21,026.68 6,895.24 3,965.39
2016-09-30 20,266.78 6,741.74 3,551.29
2016-06-30 19,029.48 6,282.24 3,141.39
2016-03-31 18,045.32 5,721.24 2,993.29
2015-12-31 16,399.81 5,139.74 3,456.26
2015-09-30 15,686.51 4,787.34 3,467.06
2015-06-30 15,119.81 4,561.34 3,326.46
2015-03-31 14,431.71 4,406.84 2,645.20
2014-12-31 13,562.56 3,999.32 2,998.17
2014-09-30 12,939.06 3,802.02 2,903.77
2014-06-30 12,454.26 3,718.82 2,811.17
2014-03-31 12,367.36 3,682.82 2,786.37
2013-12-31 12,129.02 3,633.30 2,867.53
2013-09-30 11,698.82 3,517.80 2,736.53
2013-06-30 11,308.42 3,301.50 2,649.73
2013-03-31 10,449.36 3,079.10 2,482.13
2012-12-31 10,761.98 2,812.69 2,664.28
2012-09-30 9,952.98 2,403.19 2,583.18
2012-06-30 8,578.19 2,064.40 2,019.17

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cholamandalam Investment and Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cholamandalam Investment and Finance used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Cholamandalam Investment and Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Cholamandalam Investment and Finance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cholamandalam Investment and Finance has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CHOLAFIN Health

 How is Cholamandalam Investment and Finance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cholamandalam Investment and Finance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cholamandalam Investment and Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cholamandalam Investment and Finance's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cholamandalam Investment and Finance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cholamandalam Investment and Finance Company Filings, last reported 2 months ago.

NSEI:CHOLAFIN Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 62,087.10 505,751.50 37,971.50
2018-03-31 51,648.94 319,728.31 4,482.06
2017-12-31 46,769.50 268,490.90 5,406.20
2017-09-30 46,769.50 268,490.90 5,406.20
2017-06-30 43,278.40 242,693.03 5,101.03
2017-03-31 42,999.10 241,716.23 4,937.59
2016-12-31 40,096.30 247,799.80 11,674.50
2016-09-30 40,096.30 247,799.80 11,674.50
2016-06-30 36,732.05 225,464.66 5,094.64
2016-03-31 36,732.05 225,464.66 5,094.64
2015-12-31 34,066.90 206,102.80 5,231.90
2015-09-30 34,066.90 206,102.80 5,231.90
2015-06-30 31,743.68 194,502.40 3,521.99
2015-03-31 31,743.68 194,502.40 3,521.99
2014-12-31 29,863.00 199,417.10 9,624.60
2014-09-30 29,863.00 199,417.10 9,624.60
2014-06-30 22,867.71 180,751.93 8,222.43
2014-03-31 22,867.71 180,751.93 8,222.43
2013-12-31 21,593.10 184,257.10 10,023.50
2013-09-30 21,593.10 184,257.10 10,023.50
2013-06-30 19,525.61 152,686.00 4,212.39
2013-03-31 19,525.61 152,686.00 4,212.39
2012-12-31 15,427.67 139,568.75 4,406.41
2012-09-30 15,427.67 139,568.75 4,406.41
2012-06-30 14,037.28 114,586.74 3,033.94
  • Cholamandalam Investment and Finance's level of debt (814.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (790.4% vs 814.6% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Cholamandalam Investment and Finance's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Cholamandalam Investment and Finance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cholamandalam Investment and Finance has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CHOLAFIN Dividends

 What is Cholamandalam Investment and Finance's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.45%
Current annual income from Cholamandalam Investment and Finance dividends. Estimated to be 0.58% next year.
If you bought ₹2,000 of Cholamandalam Investment and Finance shares you are expected to receive ₹9 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cholamandalam Investment and Finance's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.53%).
  • Cholamandalam Investment and Finance's dividend is below the markets top 25% of dividend payers in India (2.04%).
Upcoming dividend payment

Purchase Cholamandalam Investment and Finance before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:CHOLAFIN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
India Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1450 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:CHOLAFIN Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 1.80 1.00
2022-03-31 1.70 1.00
2021-03-31 1.93 8.00
2020-03-31 1.42 7.00
NSEI:CHOLAFIN Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-04-30 1.300 0.463
2019-01-30 1.300 0.492
2018-04-23 1.300 0.477
2018-01-30 1.300 0.454
2017-04-28 1.100 0.472
2017-01-25 1.100 0.545
2016-07-05 0.900 0.436
2016-01-29 0.700 0.448
2015-04-24 0.700 0.559
2014-07-04 0.700 0.724
2014-04-28 0.700 1.022
2014-01-29 0.700 1.371
2013-07-08 0.700 1.501
2013-04-26 0.700 1.331
2013-01-18 0.700 1.263
2012-04-26 0.400 0.955
2012-01-31 0.600 1.772
2011-10-28 0.600 2.276
2011-05-02 0.300 0.949
2010-04-26 0.200 0.631
2010-04-15 0.000 0.000
2010-01-27 0.000 0.000
2009-10-28 0.000 0.000
2009-07-28 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cholamandalam Investment and Finance has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Cholamandalam Investment and Finance only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Cholamandalam Investment and Finance's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (11.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (12.8x coverage).
X
Income/ dividend checks
We assess Cholamandalam Investment and Finance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cholamandalam Investment and Finance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cholamandalam Investment and Finance has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CHOLAFIN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • Cholamandalam Investment and Finance has no CEO, or we have no data on them.
Management Team

Arul Selvan D.

TITLE
Executive VP & CFO
AGE
55

Pilli Sujatha

TITLE
VP, Compliance Officer & Company Secretary
AGE
50

Arun Alagappan

TITLE
Executive Director
COMPENSATION
₹21M
AGE
42

Mahesh Waikar

TITLE
Vice President of Operations
AGE
53

Sudhir Rao

TITLE
Head of Marketing and Corporate Communications
TENURE
6.2 yrs

R. Chandrasekar

TITLE
Vice President of Human Resources
COMPENSATION
₹3M
AGE
53

Rohit Phadke

TITLE
Business Head of Home Equity and Senior Vice President
COMPENSATION
₹4M
AGE
53

V. Venkatesan

TITLE
Head of Information Technology and Vice President
COMPENSATION
₹4M
AGE
57

Shankar Subramanian

TITLE
Chief Risk Officer and Vice President
COMPENSATION
₹3M
AGE
50

J. Raman

TITLE
Head of Cross Sell and Associate Vice President
COMPENSATION
₹3M
AGE
47
Board of Directors Tenure

Average tenure and age of the Cholamandalam Investment and Finance board of directors in years:

1.3
Average Tenure
61.5
Average Age
  • The average tenure for the Cholamandalam Investment and Finance board of directors is less than 3 years, this suggests a new board.
Board of Directors

Murugappan Murugappan

TITLE
Chairman of the Board
COMPENSATION
₹655K
AGE
63
TENURE
0.9 yrs

Arun Alagappan

TITLE
Executive Director
COMPENSATION
₹21M
AGE
42
TENURE
1.8 yrs

Bharati Rao

TITLE
Independent Director
COMPENSATION
₹1M
AGE
70
TENURE
4.9 yrs

N Rajan

TITLE
Additional Independent Director
AGE
61
TENURE
0.7 yrs

Ashok Barat

TITLE
Independent Director
COMPENSATION
₹427K
AGE
62
TENURE
1.7 yrs

Rohan Verma

TITLE
Independent Director
AGE
31
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Cholamandalam Investment and Finance insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
10. Jun 19 Buy Shambho Trust Company 03. Jun 19 03. Jun 19 1,601,300 ₹306.48 ₹490,766,385
10. Jun 19 Buy Saraswathi Trust Company 03. Jun 19 03. Jun 19 776,565 ₹306.48 ₹238,001,622
10. Jun 19 Sell M. V. Subbiah Individual 03. Jun 19 03. Jun 19 -752,890 ₹306.48 ₹-230,745,709
07. Jun 19 Sell Sanjiv Sharma Individual 03. Jun 19 03. Jun 19 -10,000 ₹307.20 ₹-3,071,999
30. May 19 Sell M. V. Subbiah Individual 24. May 19 24. May 19 -36,125 ₹289.28 ₹-10,450,088
04. Jun 19 Sell J Prakash Individual 27. May 19 31. May 19 -5,000 ₹310.00 ₹-1,531,087
30. May 19 Sell K S Shambhavi Trust Company 24. May 19 24. May 19 -36,125 ₹288.84 ₹-10,434,184
30. May 19 Sell V. Bhairavi Individual 24. May 19 24. May 19 -36,125 ₹288.76 ₹-10,431,306
23. May 19 Sell A. Kavitha Individual 21. May 19 21. May 19 -8,750 ₹283.26 ₹-2,478,505
04. Jan 19 Buy M/S. M M Muthiah Family Trust Company 31. Dec 18 31. Dec 18 520,750 ₹251.94 ₹131,197,734
29. Mar 19 Buy Meenakshi Murugappan Family Trust Company 26. Mar 19 26. Mar 19 25,000 ₹276.44 ₹6,910,999
29. Mar 19 Buy M M Venkatachalam Family Trust Company 25. Mar 19 25. Mar 19 122,550 ₹265.88 ₹32,583,586
29. Mar 19 Buy M M Murugappan Family Trust Company 26. Mar 19 26. Mar 19 333,000 ₹276.44 ₹92,054,508
29. Mar 19 Sell Meenakshi Murugappan Individual 26. Mar 19 26. Mar 19 -333,000 ₹276.44 ₹-92,054,508
29. Mar 19 Sell Murugappan Murugappan Individual 26. Mar 19 26. Mar 19 -25,000 ₹276.44 ₹-6,910,999
04. Jan 19 Buy M M Veerappan Family Trust Company 31. Dec 18 31. Dec 18 46,055 ₹251.94 ₹11,603,095
04. Jan 19 Buy Subramanian Family Trust Company 31. Dec 18 31. Dec 18 474,130 ₹251.94 ₹119,452,293
04. Jan 19 Sell Meenakshi Murugappan Individual 31. Dec 18 31. Dec 18 -46,620 ₹251.94 ₹-11,745,441
04. Jan 19 Sell Lakshmi Venkatachalam Individual 31. Dec 18 31. Dec 18 -474,130 ₹251.94 ₹-119,452,293
04. Jan 19 Sell Muthiah Venkatachalam Individual 31. Dec 18 31. Dec 18 -474,130 ₹251.94 ₹-119,452,293
04. Jan 19 Sell Murugappan Murugappan Individual 31. Dec 18 31. Dec 18 -46,055 ₹251.94 ₹-11,603,095
24. Sep 18 Sell T.S.P. Lakshmanan Individual 21. Sep 18 21. Sep 18 -11,500 ₹258.50 ₹-2,972,773
21. Sep 18 Sell Ambadi Holdings Private Limited Company 19. Sep 18 19. Sep 18 -1,500,000 ₹264.51 ₹-396,768,160
21. Sep 18 Buy Cholamandalam Financial Holdings Limited Company 19. Sep 18 19. Sep 18 1,500,000 ₹264.51 ₹396,768,160
X
Management checks
We assess Cholamandalam Investment and Finance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cholamandalam Investment and Finance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CHOLAFIN News

Simply Wall St News

Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN): Can Growth Justify Its May Share Price?

Cholamandalam Investment and Finance is available at price-to-earnings ratio of 19.69x, showing us it is undervalued based on its latest annual earnings update compared to the Consumer Finance average of 20.01x , and overvalued compared to the IN market average ratio of 16.08x. … A PE ratio of 19.69x and expected year-on-year earnings growth of 14% give Cholamandalam Investment and Finance a higher PEG ratio of 1.42x. … So, when we include the growth factor in our analysis, Cholamandalam Investment and Finance appears slightly overvalued , based on the fundamentals.

Simply Wall St -

Will Cholamandalam Investment and Finance Company Limited's (NSE:CHOLAFIN) Earnings Grow In The Next Couple Of Years?

The latest earnings update Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN) released in March 2019 confirmed that the company gained from a strong tailwind, eventuating to a double-digit earnings growth of 23%. … Below, I've presented key growth figures on how market analysts view Cholamandalam Investment and Finance's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for Cholamandalam Investment and Finance Analysts' expectations for next year seems positive, with earnings increasing by a robust 18%.

Simply Wall St -

Read This Before You Buy Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN) Because Of Its P/E Ratio

To keep it practical, we'll show how Cholamandalam Investment and Finance Company Limited's (NSE:CHOLAFIN) P/E ratio could help you assess the value on offer. … What is Cholamandalam Investment and Finance's P/E ratio? … How Do I Calculate Cholamandalam Investment and Finance's Price To Earnings Ratio

Simply Wall St -

Does Cholamandalam Investment and Finance (NSE:CHOLAFIN) Deserve A Spot On Your Watchlist?

In contrast to all that, I prefer to spend time on companies like Cholamandalam Investment and Finance (NSE:CHOLAFIN), which has not only revenues, but also profits. … Cholamandalam Investment and Finance's Earnings Per Share Are Growing. … I note that Cholamandalam Investment and Finance's revenue from operations was lower than its revenue in the last twelve months, so that could distort my analysis of its margins.

Simply Wall St -

Did You Miss Cholamandalam Investment and Finance's (NSE:CHOLAFIN) Whopping 440% Share Price Gain?

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, Cholamandalam Investment and Finance achieved compound earnings per share (EPS) growth of 22% per year. … This EPS growth is slower than the share price growth of 40% per year, over the same period.

Simply Wall St -

What Do Analysts Think About Cholamandalam Investment and Finance Company Limited's (NSE:CHOLAFIN) Growth?

Cholamandalam Investment and Finance Company Limited's (NSE:CHOLAFIN) latest earnings update in March 2018a … company

Simply Wall St -

Is Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN) Expensive For A Reason? A Look At The Intrinsic Value

Given that these companies adhere to a different set of rules relative to other companies, their cash flows should also be valued differently. … For example, businesses that deal with loans are required to hold more capital to reduce the risk to shareholders.

Simply Wall St -

Is Cholamandalam Investment and Finance Company Limited's (NSE:CHOLAFIN) High P/E Ratio A Problem For Investors?

We'll show how you can use Cholamandalam Investment and Finance Company Limited's (NSE:CHOLAFIN) P/E ratio to inform your assessment of the investment opportunity. … Cholamandalam Investment and Finance has a P/E ratio of 20.08, based on the last twelve months. … How Do You Calculate Cholamandalam Investment and Finance's P/E Ratio

Simply Wall St -

What Should We Expect From Cholamandalam Investment and Finance Company Limited's (NSE:CHOLAFIN) Earnings In The Year Ahead?

Since Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN) released its earnings in March 2018,. … with earnings expected to grow by 27% in the upcoming year … the past 5-year average growth rate of 23%

Simply Wall St -

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. … dividend-paying company

Simply Wall St -

CHOLAFIN Company Info

Description

Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India. The company offers two wheeler and commercial vehicle loans, tractor loans, car and MUV loans, and construction equipment loans; loans against properties; home loans for self-construction, purchase of plots, and ready to occupy homes, as well as balance transfer of existing home loans; home equity loans; business loans for small and medium enterprises; rural and agri loans; and corporate mortgage loans. It also provides wealth management services that cover mutual funds, fixed deposits and bonds, life and general insurance, and home loans for private individuals and professionals; 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 April 23, 2018 it operated a network of 873 branches. The company was founded in 1978 and is headquartered in Chennai, India.

Details
Name: Cholamandalam Investment and Finance Company Limited
CHOLAFIN
Exchange: NSEI
Founded: 1978
₹228,167,035,645
781,795,565
Website: http://www.cholamandalam.com
Address: Cholamandalam Investment and Finance Company Limited
Dare House,
1st Floor,
Chennai,
Tamil Nadu, 600001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 511243 Equity Shares Mumbai Stock Exchange IN INR 25. Jul 1994
NSEI CHOLAFIN Equity Shares National Stock Exchange of India IN INR 25. Jul 1994
BSE 511243 INR2 Mumbai Stock Exchange IN INR 14. Jun 2019
NSEI CHOLAFIN INR2 National Stock Exchange of India IN INR 14. Jun 2019
Number of employees
Current staff
Staff numbers
0
Cholamandalam Investment and Finance employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 12:55
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/06
Last earnings filing: 2019/04/27
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.