Cholamandalam Financial Holdings Ltd (CHOLAHLDNG) AI Stock Analysis

• Market Cap: ₹378.29B
• Dividend Yield: 0.07%
• Average Volume (3M): 6.67K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.05
• Revenue Growth: 22.50%
• EPS Growth: 8.48%
• Country: IN
• Employees: 2
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 29.29
• Shares Outstanding: 187,777,470
• 10 Day Avg. Volume: 4,843
• 30 Day Avg. Volume: 6,675
• PEG Ratio: 0.65
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -0.93
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹1,754.00 ▼(-5.00% Downside)

Cholamandalam Financial Holdings Ltd faces significant challenges with financial performance, particularly due to declining revenue, high leverage, and negative cash flows. Technical indicators suggest a bearish trend, adding to the cautious outlook. While the valuation appears moderate, the low dividend yield may not appeal to income investors. Overall, the stock presents a high-risk profile, requiring careful consideration.

Positive Factors

Profitability

A positive net profit margin indicates that the company is able to convert a significant portion of its revenue into profit, demonstrating operational efficiency and the potential for sustainable earnings over time.

Operational Efficiency

Strong EBIT and EBITDA margins suggest that the company is managing its operations efficiently, which can support profitability and provide a buffer against revenue fluctuations.

Return on Equity

A reasonable return on equity indicates effective use of shareholders' equity to generate profits, which can enhance investor confidence and support long-term growth.

Negative Factors

Revenue Decline

A significant decline in revenue growth can impact the company's ability to sustain operations and invest in future growth, posing a risk to long-term financial health.

High Leverage

High leverage can increase financial risk, limit flexibility, and strain cash flows, potentially affecting the company's ability to navigate economic downturns or invest in growth opportunities.

Negative Cash Flows

Negative cash flows from operations indicate that the company may struggle to meet its financial obligations and fund growth initiatives, potentially threatening long-term viability.

Cholamandalam Financial Holdings Ltd Business Overview & Revenue Model

Company Description

Cholamandalam Financial Holdings Ltd (CHOLAHLDNG) is a diversified financial services company based in India, operating primarily in the sectors of vehicle financing, home loans, and insurance. As a part of the Murugappa Group, the company provides a range of financial solutions including loans for commercial vehicles, passenger vehicles, and two-wheelers, as well as mortgage loans, and a suite of insurance products. With a strong focus on retail financing, Cholamandalam aims to cater to the evolving needs of customers across various segments.

How the Company Makes Money

Cholamandalam Financial Holdings generates revenue through multiple key streams, primarily from interest income on loans provided to customers, including vehicle loans, home loans, and personal loans. The company earns significant income from its financing activities by charging interest on the principal amounts disbursed. Additionally, it generates revenue from insurance premiums through its insurance subsidiary, which offers various policies. The company's revenue model is bolstered by its extensive network of branches and partnerships with vehicle manufacturers and dealers, enabling it to reach a wider customer base. Factors such as the rising demand for vehicles in India, increased urbanization, and the growing middle-class population contribute to its earnings potential.

Cholamandalam Financial Holdings Ltd Financial Statement Overview

Summary

Cholamandalam Financial Holdings Ltd shows profitability through its net profit margin and return on equity. However, the significant revenue decline, high leverage, and negative cash flows indicate potential financial instability and risk. The company needs to address its revenue growth and manage its debt levels to improve its financial health.

Income Statement

The income statement shows a mixed performance. While the company has a positive net profit margin of 11.96% for the latest year, indicating profitability, the revenue growth rate is negative at -43.94%, reflecting a significant decline in revenue. The EBIT and EBITDA margins are strong, suggesting efficient operations, but the overall revenue decline is a concern.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 13.93, indicating significant reliance on debt financing. The return on equity is reasonable at 17.37%, showing effective use of equity to generate profits. However, the high debt levels pose a risk to financial stability.

Cash Flow

The cash flow statement highlights challenges with negative operating cash flow and free cash flow, indicating cash outflows from operations. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is just covering net income, but the negative growth in free cash flow is concerning.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	363.44B	348.37B	272.76B	193.74B	156.34B	144.54B
Gross Profit	111.74B	108.43B	81.54B	87.89B	73.28B	62.94B
EBITDA	70.44B	67.40B	54.74B	56.54B	44.16B	37.26B
Net Income	22.04B	21.74B	17.73B	12.90B	10.23B	8.25B
Balance Sheet
Total Assets	0.00	2.25T	1.77T	1.31T	977.72B	886.16B
Cash, Cash Equivalents and Short-Term Investments	0.00	127.73B	49.99B	46.87B	48.57B	84.87B
Total Debt	0.00	1.74T	1.34T	971.91B	692.29B	639.69B
Total Liabilities	-269.49B	1.98T	1.55T	1.15T	841.43B	772.57B
Stockholders Equity	269.49B	125.15B	102.42B	76.61B	64.46B	53.86B
Cash Flow
Free Cash Flow	0.00	-345.43B	-368.95B	-295.89B	-58.77B	-97.83B
Operating Cash Flow	0.00	-342.01B	-357.26B	-293.29B	-57.38B	-97.19B
Investing Cash Flow	0.00	-10.38B	-26.25B	2.95B	-1.35B	-620.70M
Financing Cash Flow	0.00	396.52B	382.69B	272.88B	70.73B	76.88B

Cholamandalam Financial Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1846.35
• 50DMA: Negative
• 100DMA: Negative
• 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:CHOLAHLDNG, the sentiment is Negative. The current price of 1846.35 is below the 20-day moving average (MA) of 1937.92, below the 50-day MA of 1908.36, and above the 200-day MA of 1839.94, indicating a neutral trend. The MACD of -1.78 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 18.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CHOLAHLDNG.

Cholamandalam Financial Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHOLAFIN	73 Outperform	₹1.48T	33.14	―	0.12%	27.30%	20.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LTF	62 Neutral	₹700.46B	25.90	―	0.88%	15.90%	4.53%
SUNDARMFIN	62 Neutral	₹530.24B	26.68	―	0.74%	15.31%	25.88%
POONAWALLA	56 Neutral	₹384.16B	168.68	―	―	34.63%	-48.50%
CHOLAHLDNG	45 Neutral	₹378.29B	17.17	―	0.07%	22.50%	8.48%

Cholamandalam Financial Holdings Ltd Corporate Events

Cholamandalam Financial Holdings’ AGM Resolutions Approved

Cholamandalam Financial Holdings Limited held its 76th Annual General Meeting on August 8, 2025, via video conference, where all resolutions were approved by the shareholders with the requisite majority. The meeting saw participation from 42 promoters and promoter group members and 11 public shareholders through video conferencing, indicating strong engagement and support from stakeholders.

Cholamandalam Financial Opens Special Window for Physical Share Transfers

Cholamandalam Financial Holdings Limited announced the opening of a special window for the re-lodgement of transfer requests for physical shares. This initiative, communicated through newspaper advertisements, is pursuant to SEBI regulations and aims to facilitate shareholders in managing their physical share transfers, potentially impacting shareholder engagement and compliance processes.

Cholamandalam Financial Holdings Releases Q2 2025 Earnings Call Recording

Cholamandalam Financial Holdings Limited announced that the audio recording of their earnings call for the quarter ending June 30, 2025, has been uploaded to their website. This move ensures compliance with SEBI regulations and provides stakeholders with timely access to the company’s financial discussions.