Cholamandalam Investment and Finance Co. Ltd. (CHOLAFIN) AI Stock Analysis

• Market Cap: ₹1.22T
• Dividend Yield: 0.14%
• Average Volume (3M): 35.48K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.35
• Revenue Growth: 31.00%
• EPS Growth: 21.07%
• Country: IN
• Employees: 38,235
• Sector: Financial
• Sector Strength: 71
• Industry: Financial - Credit Services
• EPS (TTM): 13.50
• Shares Outstanding: 841,208,300
• 10 Day Avg. Volume: 36,004
• 30 Day Avg. Volume: 35,479
• PEG Ratio: 1.25
• Price to Book (P/B): 5.21
• Price to Sales (P/S): 4.72
• P/FCF Ratio: -3.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,612.50
• Price Target Upside: 10.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: ₹1,660.00 ▲(13.78% Upside)

Cholamandalam's strong financial performance, characterized by impressive revenue growth and profitability, is tempered by concerns over leverage and cash flow management. The technical analysis presents a mixed outlook, with potential bearish momentum. The valuation suggests the stock is overvalued, impacting the overall score.

Cholamandalam Investment and Finance Co. Ltd. Business Overview & Revenue Model

Company Description

Cholamandalam Investment and Finance Co. Ltd. (CHOLAFIN) is a diversified financial services provider based in India, primarily focusing on vehicle finance, home loans, SME loans, and investment advisory services. As a part of the Murugappa Group, the company leverages its strong network to offer a wide range of financial products and services tailored to the needs of its customers, aiming to empower individuals and businesses by providing easy access to financial resources.

How the Company Makes Money

Cholamandalam Investment and Finance Co. Ltd. generates revenue primarily through interest income from its diverse portfolio of loans. The company's key revenue streams include vehicle finance, where it provides loans for the purchase of new and used vehicles; home loans, offering financing for residential properties; and SME loans, targeting small and medium enterprises to support their growth and expansion. In addition to interest income, CHOLAFIN earns fees and commissions related to loan processing and other financial services. The company has also established strategic partnerships with various manufacturers, dealers, and financial institutions, enhancing its market reach and customer base, which in turn contributes to its earnings.

Cholamandalam Investment and Finance Co. Ltd. Financial Statement Overview

Summary

Cholamandalam exhibits strong revenue growth and profitability, with robust margins and efficient operations. However, the balance sheet shows leverage risks with a high debt-to-equity ratio, and cash flow management faces challenges with persistent negative free cash flow.

Income Statement

Cholamandalam Investment and Finance Co. Ltd. has shown strong revenue growth over the years with a steady increase in total revenue from 2020 to 2025. The gross profit margin and net profit margin are robust, indicating efficient cost management and profitability. The EBIT and EBITDA margins are healthy, demonstrating strong operating performance. The company has maintained a commendable revenue growth trajectory, reflecting its market strength and competitive positioning.

Balance Sheet

The company's balance sheet displays a strong equity base, with a significant increase in stockholders' equity over the years. However, the debt-to-equity ratio is relatively high, indicating potential leverage risk. The equity ratio shows a stable proportion of equity funding the assets, which is a positive sign of financial stability. Overall, the balance sheet reflects a well-capitalized structure but highlights some leverage concerns.

Cash Flow

Cholamandalam Investment and Finance Co. Ltd. faces challenges in cash flow management, with consistently negative free cash flow. The operating cash flow to net income ratio indicates cash flow generation difficulties from core operations. However, the company's ability to raise financing highlights its access to capital markets. The negative free cash flow requires attention to ensure future solvency and liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	261.53B	261.53B	194.20B	128.79B	101.43B	95.81B
Gross Profit	136.58B	136.58B	101.89B	71.45B	58.64B	50.21B
EBITDA	59.89B	59.89B	48.13B	37.36B	30.08B	21.50B
Net Income	42.63B	42.63B	34.20B	26.65B	21.54B	15.21B
Balance Sheet
Total Assets	2.02T	2.02T	1.57T	1.14T	824.79B	746.44B
Cash, Cash Equivalents and Short-Term Investments	95.01B	95.01B	43.94B	9.12B	26.99B	14.80B
Total Debt	1.75T	1.75T	1.34T	973.58B	692.84B	638.23B
Total Liabilities	1.78T	1.78T	1.37T	992.81B	707.10B	650.44B
Stockholders Equity	236.69B	236.69B	195.93B	143.46B	117.69B	96.00B
Cash Flow
Free Cash Flow	0.00	-326.13B	-367.59B	-272.82B	-56.67B	-88.75B
Operating Cash Flow	0.00	-324.13B	-356.83B	-271.05B	-55.71B	-88.42B
Investing Cash Flow	0.00	-29.48B	-28.55B	-21.48B	16.40B	-15.72B
Financing Cash Flow	0.00	397.95B	384.71B	274.66B	51.50B	85.16B

Cholamandalam Investment and Finance Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1458.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CHOLAFIN, the sentiment is Negative. The current price of 1458.9 is below the 20-day moving average (MA) of 1490.85, below the 50-day MA of 1540.26, and above the 200-day MA of 1425.21, indicating a neutral trend. The MACD of -24.36 indicates Negative momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 50.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CHOLAFIN.

Cholamandalam Investment and Finance Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUTHOOTFIN	73 Outperform	₹1.02T	19.10		1.03%	38.22%	37.80%
CHOLAFIN	64 Neutral	₹1.22T	27.39		0.14%	31.00%	21.07%
SHRIRAMFIN	62 Neutral	₹1.15T	11.87		2.09%	20.27%	25.95%
Sector *	62 Neutral	C$15.64B	6.67	13.72%	5.97%	22.38%	-10.22%

Cholamandalam Investment and Finance Co. Ltd. Corporate Events

Cholamandalam Investment Announces 47th AGM Notice

Cholamandalam Investment and Finance Company Limited announced the publication of advertisements regarding the notice of its 47th Annual General Meeting (AGM) in leading newspapers. This announcement highlights the company’s commitment to transparency and stakeholder engagement, ensuring that shareholders and interested parties are informed about the AGM details and can participate effectively.