BSE:504973

Stock Analysis Report

Cholamandalam Financial Holdings

Executive Summary

Cholamandalam Financial Holdings Limited, an investment company, provides financial services in India.

Rewards

PE ratio (15x) is below the Insurance industry average (54.7x)

Earnings grew by 18.8% over the past year

Risk Analysis

No risks detected for 504973 from our risk checks.


Snowflake Analysis

Solid track record and slightly overvalued.

Share Price & News

How has Cholamandalam Financial Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 504973 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.6%

504973

0.3%

IN Insurance

-0.5%

IN Market


1 Year Return

22.1%

504973

49.1%

IN Insurance

9.6%

IN Market

Return vs Industry: 504973 underperformed the Indian Insurance industry which returned 39.5% over the past year.

Return vs Market: 504973 exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

504973IndustryMarket
7 Day3.6%0.3%-0.5%
30 Day12.5%1.8%2.9%
90 Day23.4%7.1%6.2%
1 Year22.4%22.1%50.1%49.1%11.6%9.6%
3 Yearn/a32.6%23.0%29.8%22.9%
5 Yearn/a34.4%20.3%36.7%24.4%

Price Volatility Vs. Market

How volatile is Cholamandalam Financial Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cholamandalam Financial Holdings undervalued compared to its fair value and its price relative to the market?

14.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 504973 (₹559.15) is trading above our estimate of fair value (₹286.74)

Significantly Below Fair Value: 504973 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 504973 is good value based on its PE Ratio (15x) compared to the Insurance industry average (54.7x).

PE vs Market: 504973 is poor value based on its PE Ratio (15x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 504973's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 504973 is good value based on its PB Ratio (2.5x) compared to the IN Insurance industry average (6.3x).


Next Steps

Future Growth

How is Cholamandalam Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-8.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 504973's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if 504973's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 504973's revenue is expected to decline over the next 3 years (-8.9% per year).

High Growth Revenue: 504973's revenue is forecast to decline over the next 3 years (-8.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 504973's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Cholamandalam Financial Holdings performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 504973 has high quality earnings.

Growing Profit Margin: 504973's current net profit margins (5.7%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: 504973's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: 504973's earnings growth over the past year (18.8%) exceeds its 5-year average (6.6% per year).

Earnings vs Industry: 504973 earnings growth over the past year (18.8%) exceeded the Insurance industry 0.6%.


Return on Equity

High ROE: 504973's Return on Equity (17%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cholamandalam Financial Holdings'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: 504973 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 504973's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: 504973's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 504973 has a sufficient allowance for bad loans.

Low Risk Liabilities: 504973 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 504973 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 504973 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 504973 has an appropriate level of bad loans.


Next Steps

Dividend

What is Cholamandalam Financial Holdings's current dividend yield, its reliability and sustainability?

0.22%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.5%markettop25%2.3%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 504973's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 504973's dividend (0.22%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: 504973 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 504973 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 504973 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 504973's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.4yrs

Average board tenure


CEO

Cholamandalam Financial Holdings has no CEO, or we have no data on them.


Board Age and Tenure

1.4yrs

Average Tenure

63yo

Average Age

Experienced Board: 504973's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹198,092,74901 Oct 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman of the board
Shares403,900
Max Price₹490.45
Sell₹198,092,74901 Oct 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman of the board
Shares403,900
Max Price₹490.45
Buy₹330,295,70219 Aug 19
Murugappa Group Ltd.
EntityCompany
Shares700,000
Max Price₹471.85
Buy₹297,684,37810 Jun 19
Shambho Trust
EntityCompany
Shares597,340
Max Price₹498.35
Buy₹166,538,59710 Jun 19
Saraswathi Trust
EntityCompany
Shares334,180
Max Price₹498.35
Sell₹249,807,89510 Jun 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman of the board
Shares501,270
Max Price₹498.35
Sell₹14,806,76230 May 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman of the board
Shares29,200
Max Price₹514.58
Buy₹182,202,41828 Mar 19
Lakshmi Venkatachalam Family Trust
EntityCompany
Shares379,905
Max Price₹479.60
Sell₹182,202,41828 Mar 19
Murugappan Murugappan
EntityIndividual
Role
Chairman of the Board
Chairman of the board
Shares379,905
Max Price₹479.60

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • E. Krithika

    Company Secretary & Compliance Officer

    • Tenure: 2.4yrs

Board Members

  • Murugappan Murugappan (64yo)

    Chairman of the board

    • Tenure: 1.9yrs
    • Compensation: ₹755.00k
  • V. Ravichandran (63yo)

    Additional Director

    • Tenure: 0.8yrs
    • Compensation: ₹19.18k
  • Ashok Barat (63yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₹562.88k
  • Sridharan Rangarajan (53yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: ₹458.15k
  • Balasubramanyan Ramaratnam (64yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹44.18k

Company Information

Cholamandalam Financial Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cholamandalam Financial Holdings Limited
  • Ticker: 504973
  • Exchange: BSE
  • Founded: 1949
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: ₹104.237b
  • Shares outstanding: 187.71m
  • Website: https://cholafhl.com

Location

  • Cholamandalam Financial Holdings Limited
  • Dare House
  • No. 234 N.S.C Bose Road
  • Chennai
  • Tamil Nadu
  • 600001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
504973BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2017
CHOLAHLDNGNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2017

Biography

Cholamandalam Financial Holdings Limited, an investment company, provides financial services in India. The company operates through Financial Services, Insurance and Allied Services, and Other Business segments. The company offers motor, health, property, accident, engineering, liability, marine, travel, and crop insurance for individuals and corporates. It also provides vehicle finance, home loans, home equity loans, and various other financial services. The company was formerly known as TI Financial Holdings Limited and changed its name to Cholamandalam Financial Holdings Limited in March 2019. Cholamandalam Financial Holdings Limited was founded in 1949 and is headquartered in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/24 13:12
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
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.