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

• Market Cap: ₹1.43T
• Dividend Yield: 0.12%
• Average Volume (3M): 79.81K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.40
• Revenue Growth: 27.30%
• EPS Growth: 20.42%
• Country: IN
• Employees: 38,235
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 13.70
• Shares Outstanding: 843,952,450
• 10 Day Avg. Volume: 47,308
• 30 Day Avg. Volume: 79,805
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹1,863.00 ▲(4.63% Upside)

Cholamandalam Investment and Finance Co. Ltd. has a robust financial performance with strong revenue growth and profitability, though leverage and cash flow issues are concerns. Technical indicators show positive momentum, but valuation metrics suggest the stock might be overvalued. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability and expansion.

Profitability

Strong profitability margins suggest effective cost control and operational efficiency, enhancing the company's ability to reinvest and grow.

Equity Base

A strong equity base provides financial stability and flexibility, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Leverage Risk

High leverage can increase financial risk, potentially affecting the company's ability to service debt and limiting future investment capacity.

Cash Flow Challenges

Negative free cash flow indicates difficulties in generating cash from operations, which could impact liquidity and the ability to fund growth initiatives.

Cash Flow Generation

Challenges in converting income into cash flow may hinder the company's ability to sustain operations and meet financial obligations without external financing.

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

Company Description

Cholamandalam Investment and Finance Company Limited, a non-banking finance company, provides various financial services in India. The company operates through Vehicle Finance, Loan Against Property, Home Loans, and Other loans segments. It offers two and three wheeler loans, new and used commercial vehicle loans, tractor loans, car and multi utility vehicles loans, and construction equipment loans, as well as loans to automobile dealers; loans against properties; home loans; loans for the self-construction, purchase of resale and new flats, independent houses, and ready to occupy homes; balance transfer facility for existing home loans; mixed use for residential and commercial; shop loans; business loans for micro, small and medium enterprises; professional loans; personal loans; rural and agri-loans; and refinance against existing vehicles. The company also provides supply chain financing, term loans for capex, loan against shares, and funding on hypothecation of machinery for specific industries; wealth management services comprising mutual funds, fixed deposits and bonds, debentures, PMS, insurance, sovereign gold bonds, and initial public offers; other unsecured loans; 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. In addition, it provides online payment gateway services for e-commerce businesses; e-commerce solutions; and Payswiff, an omni channel payment transaction solution. As of March 31, 2022, it operated through a network of 1,145 branches. The company was incorporated in 1978 and is headquartered in Chennai, India.

How the Company Makes Money

Cholamandalam Investment and Finance Co. Ltd. generates revenue primarily through interest income derived from its lending activities. Key revenue streams include financing for two-wheelers, commercial vehicles, and personal loans, where the company earns interest on the principal amount lent to customers. Additionally, the company generates income from fees and charges associated with loan origination, processing, and servicing. CHOLAFIN also engages in asset management and investment advisory services, contributing to its overall earnings. Significant partnerships with automobile manufacturers and dealerships enhance its distribution network and customer reach, allowing the company to expand its market presence and drive revenue growth.

Cholamandalam Investment and Finance Co. Ltd. Financial Statement Overview

Summary

Cholamandalam Investment and Finance Co. Ltd. demonstrates strong revenue growth and profitability, supported by efficient operations. However, leverage risks and negative free cash flow pose challenges that need attention.

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	276.49B	261.53B	194.20B	128.79B	101.43B	95.81B
Gross Profit	144.83B	136.58B	101.89B	71.45B	58.64B	50.21B
EBITDA	62.54B	59.89B	48.13B	37.36B	30.08B	21.50B
Net Income	44.53B	42.63B	34.20B	26.65B	21.54B	15.21B
Balance Sheet
Total Assets	0.00	2.02T	1.57T	1.14T	824.79B	746.44B
Cash, Cash Equivalents and Short-Term Investments	0.00	95.01B	43.94B	9.12B	26.99B	44.43B
Total Debt	0.00	1.75T	1.34T	973.58B	692.84B	638.23B
Total Liabilities	-236.69B	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	-17.46B
Financing Cash Flow	0.00	397.95B	384.71B	274.66B	51.50B	87.07B

Cholamandalam Investment and Finance Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1780.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CHOLAFIN, the sentiment is Neutral. The current price of 1780.55 is above the 20-day moving average (MA) of 1710.30, above the 50-day MA of 1710.77, and above the 200-day MA of 1597.57, indicating a neutral trend. The MACD of 5.84 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 9.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	74 Outperform	₹1.58T	21.64	―	0.68%	41.32%	56.12%
CHOLAFIN	73 Outperform	₹1.43T	30.59	―	0.12%	27.30%	20.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHRIRAMFIN	67 Neutral	₹1.84T	18.64	―	1.08%	21.24%	22.61%
LTF	62 Neutral	₹740.26B	27.36	―	0.91%	15.90%	4.53%
SUNDARMFIN	62 Neutral	₹561.21B	28.23	―	0.71%	15.31%	25.88%
MANAPPURAM	49 Neutral	₹261.46B	58.21	―	0.80%	-3.68%	-80.12%

Cholamandalam Investment and Finance Co. Ltd. Corporate Events

Cholamandalam Converts CCDs into 7.63 Million Equity Shares, Expands Capital Base

Cholamandalam Investment and Finance Company has approved the conversion of 106,300 compulsorily convertible debentures, each with a face value of ₹1,00,000, into 7,631,691 equity shares of ₹2 each at a conversion price of ₹1,392.88 per share, reflecting a 16.5% discount to the seven-day volume weighted average price on the NSE prior to 1 January 2026. Following this allotment, the company’s issued capital has increased from 84,47,00,931 to 85,23,32,622 shares and paid-up capital from 84,40,17,161 to 85,16,48,852 shares, with the new equity shares ranking pari passu with existing shares on dividends and voting rights and set to be listed on both NSE and BSE, thereby modestly expanding the equity base and diluting existing holdings while strengthening the company’s capital structure.

Cholamandalam Investment Allots 64,690 Equity Shares Under ESOP

Cholamandalam Investment and Finance Company Limited has allotted 64,690 equity shares of Rs 2 each to employees who exercised their options under the company’s employee stock option scheme, as approved by its Nomination and Remuneration Committee. The company plans to seek final listing of these newly issued shares on the NSE and BSE, modestly enlarging its equity base and reinforcing the role of stock-based compensation in aligning employee interests with long-term shareholder value.

Cholamandalam Investment Sets Board Meet to Approve Q3 FY26 Results, Closes Trading Window

Cholamandalam Investment and Finance Company Limited has scheduled a meeting of its Board of Directors on 30 January 2026 to consider and approve the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. In line with regulatory requirements on insider trading, the company has closed its trading window for designated persons from 1 January 2026 to 1 February 2026, signaling the upcoming earnings disclosure and reinforcing compliance with SEBI’s listing and insider trading regulations.

Cholamandalam Investment Raises ₹1,001 Crore via Secured Non-Convertible Securities

Cholamandalam Investment and Finance Company Limited has completed a private placement of secured non-convertible securities on the National Stock Exchange’s Wholesale Debt Market segment, allotting 100,100 instruments with a total value of ₹1,001 crore as part of a larger issue size of up to ₹1,500 crore, including a green shoe option of ₹500 crore. The instruments, secured at 1x cover and carrying an 8.20% annual coupon with a 7.54% yield, have a tenure of 2.15 years and will pay interest annually and at maturity on 17 February 2028, underscoring the company’s continued reliance on bond markets for medium-term funding and potentially strengthening its liquidity position without any reported delays or defaults on payments.

Cholamandalam Investment Allocates 98,980 Equity Shares Under ESOP

Cholamandalam Investment and Finance Company Limited has announced the allotment of 98,980 equity shares through its employee stock option scheme. This move highlights the company’s commitment to employee inclusivity in its growth journey and indicates steps to finalize the formalities for listing these shares on major Indian stock exchanges, the NSE and BSE.

Cholamandalam Announces Share Transfer to IEPF

Cholamandalam Investment and Finance Company Limited has announced the proposed transfer of equity shares to the Investor Education and Protection Fund (IEPF) Demat Account. This move is in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the IEPF (Accounting, Audit, Transfer and Refund) Rules, 2016. The company has published notices in ‘Business Line’ and ‘Dinamani’ regarding this transfer, which is a regulatory requirement aimed at protecting investor interests.

Cholamandalam Allots Over 88,000 Shares Under Employee Stock Option

Cholamandalam Investment and Finance Company Limited announced the allotment of 88,583 equity shares following the exercise of employee stock options. This move is part of the company’s employee stock option scheme, and the shares will be listed on the National Stock Exchange and Bombay Stock Exchange, reflecting the company’s commitment to rewarding its employees and potentially enhancing its market presence.

Cholamandalam Investment Allots INR 500 Crore in Non-Convertible Securities

Cholamandalam Investment and Finance Company Limited has announced the allotment of 50,000 unsecured subordinated non-convertible securities through a private placement at the National Stock Exchange’s Wholesale Debt Market Segment. This issuance, amounting to INR 500 crores with a total issue size of INR 1,000 crores including a green shoe option, is set at an annual coupon rate of 8.40% over a tenure of seven years, reflecting the company’s strategic move to strengthen its financial position and enhance its market offerings.

Cholamandalam Allots 123,440 Shares Under Employee Stock Option Scheme

Cholamandalam Investment and Finance Co. Ltd. announced the allotment of 123,440 equity shares to employees who exercised their options under the employee stock option scheme. This move is part of the company’s strategy to incentivize and retain talent, potentially enhancing employee engagement and aligning their interests with shareholder value. The company will proceed with the necessary formalities to list these shares on the National Stock Exchange and Bombay Stock Exchange, which could impact its market positioning and shareholder base.

Cholamandalam Investment Seeks Promoter Group Reclassification

Cholamandalam Investment and Finance Company Limited has submitted an application to reclassify two members of its promoter group, Yanmar Coromandel Agrisolutions Private Limited and Coromandel Engineering Company Limited, to the public category. This move, approved by the company’s Board of Directors, is in compliance with Regulation 31A of the SEBI Listing Regulations and indicates a strategic shift in the company’s ownership structure, potentially impacting its market positioning and stakeholder dynamics.

Cholamandalam Allots 55,000 Secured Non-Convertible Securities

Cholamandalam Investment and Finance Co. Ltd. announced the allotment of 55,000 secured non-convertible securities through a private placement on the National Stock Exchange’s Wholesale Debt Market segment. The issue, amounting to 550 crore INR with a total size of 1,000 crore INR including a green shoe option, is set for a tenure of five years with an annual coupon rate of 7.58%. This move is expected to strengthen the company’s financial position and enhance its market offerings.