Cholamandalam Financial Holdings Ltd (CHOLAHLDNG) AI Stock Analysis

• Market Cap: ₹281.35B
• Dividend Yield: 0.07%
• Average Volume (3M): 6.67K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.17
• Revenue Growth: 22.50%
• EPS Growth: 8.48%
• Country: IN
• Employees: 2
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 33.32
• 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): 0.92
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 133
• Revenue Forecast (FY): ₹15.21B

• Rating: 45 Neutral
• Price Target: ₹1,461.00 ▼(-19.79% Downside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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

Diversified holding model

As a holding company that owns stakes across vehicle finance and retail lending, Cholamandalam benefits from diversified earnings sources and capital-allocation optionality. This structure reduces single-entity operational risk and allows steady dividend/capital-upstream potential if subsidiaries remain profitable.

Solid return on equity

An ROE around 17% indicates the group’s equity is generating attractive returns versus peers, reflecting effective capital use at subsidiary level. For a holding company that relies on investee profitability and upstreaming, sustained ROE supports recurring distributable earnings over the medium term.

Margin resilience

Healthy net and operating margins show the underlying businesses can retain profitability even amid stress, supporting their ability to pay dividends and absorb cyclical revenue swings. Sustained margin strength underpins cash generation and protects long-term earnings quality.

Negative Factors

Very high leverage

Extremely high debt-to-equity markedly raises financial vulnerability: interest burdens, refinancing risk, and reduced flexibility to support subsidiaries or absorb shocks. For a holding reliant on upstreamed cash, elevated leverage constrains payout capacity and heightens downside in stress scenarios.

Weak cash generation

Negative operating and free cash flows signal that accounting profits are not converting into durable cash available to service debt or fund distributions. Persistent cash shortfalls limit the holding company’s ability to rely on internal funds for capital allocation or to smooth dividends without external financing.

Sharp revenue decline

A steep drop in revenue materially weakens the earnings base from which dividends and capital gains emerge. For a holding company, sustained top-line contraction at investees reduces distributable profits, increases reliance on asset sales or debt, and undermines medium-term cash generation prospects.

Cholamandalam Financial Holdings Ltd Business Overview & Revenue Model

Company Description

Cholamandalam Financial Holdings Limited, an investment company, provides financial services in India. The company provides vehicle finance, home loans, home equity loans, SME loans, investment advisory and stock broking services, and various other financial services. It also offers accident, engineering, health, liability, marine, motor, property, rural, and travel insurance products for individuals and corporates. 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 incorporated in 1949 and is based in Chennai, India.

How the Company Makes Money

Cholamandalam Financial Holdings Ltd makes money primarily as a holding company through (1) dividends and other distributions received from its operating investee companies (for example, non-banking finance and related financial services entities in which it holds equity), (2) its share of profits from associates/joint ventures accounted for under applicable accounting standards (where relevant), and (3) gains from changes in the value of, or sale of, its investments (capital gains), depending on portfolio actions. Its consolidated/standalone income is therefore driven by the profitability, payout policies, and growth of the underlying financial services businesses it owns stakes in. Material drivers typically include credit growth and net interest margins at lending subsidiaries, credit quality/impairments, operating costs, and the ability of those entities to upstream cash to the holding company as dividends; however, specific segment-wise figures, counterparties, or partnership terms for CHOLAHLDNG are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	379.92B	348.37B	272.76B	193.74B	156.34B	144.54B
Gross Profit	116.14B	108.43B	81.54B	87.89B	73.28B	62.94B
EBITDA	75.81B	67.40B	54.74B	56.54B	44.16B	37.26B
Net Income	22.28B	21.74B	17.73B	12.90B	10.23B	8.25B
Balance Sheet
Total Assets	2.40T	2.25T	1.77T	1.31T	977.72B	886.16B
Cash, Cash Equivalents and Short-Term Investments	105.06B	127.73B	49.99B	46.87B	48.57B	84.87B
Total Debt	1.87T	1.74T	1.34T	971.91B	692.29B	639.69B
Total Liabilities	2.10T	1.98T	1.55T	1.15T	841.43B	772.57B
Stockholders Equity	136.69B	125.15B	102.42B	76.61B	64.46B	53.86B
Cash Flow
Free Cash Flow	-110.71B	-345.43B	-368.95B	-295.89B	-58.77B	-97.83B
Operating Cash Flow	-108.70B	-342.01B	-357.26B	-293.29B	-57.38B	-97.19B
Investing Cash Flow	-6.72B	-10.38B	-26.25B	2.95B	-1.35B	-620.70M
Financing Cash Flow	118.96B	396.52B	382.69B	272.88B	70.73B	76.88B

Cholamandalam Financial Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1821.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1821.4 is above the 20-day moving average (MA) of 1625.24, above the 50-day MA of 1694.56, and below the 200-day MA of 1860.69, indicating a bearish trend. The MACD of -49.17 indicates Positive momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 51.27 is Neutral, 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	₹1.30T	27.83	―	0.12%	27.30%	20.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LTF	62 Neutral	₹672.93B	26.76	―	0.91%	15.90%	4.53%
SUNDARMFIN	62 Neutral	₹555.19B	26.89	―	0.71%	15.31%	25.88%
M&MFIN	52 Neutral	₹446.43B	8.44	―	2.83%	―	―
POONAWALLA	49 Neutral	₹335.03B	64.91	―	―	34.63%	-48.50%
CHOLAHLDNG	45 Neutral	₹281.35B	13.60	―	0.07%	22.50%	8.48%

Cholamandalam Financial Holdings Ltd Corporate Events

Cholamandalam Financial Holdings Schedules Analyst Call on Q3 FY2026 Results

Cholamandalam Financial Holdings Limited has announced that it will host a group analyst and investor conference call on 9 February 2026, organized by DAM Capital Advisors Limited, to discuss its unaudited standalone and consolidated financial results for the quarter ended 31 December 2025. The company has indicated that any changes to the call schedule will be updated on its website, underscoring its efforts to maintain regular engagement and transparent communication with the investment community regarding its quarterly performance.

Cholamandalam Financial Holdings Files SEBI Regulation 74(5) Compliance Certificate for Q3 FY2025-26

Cholamandalam Financial Holdings Limited has submitted a compliance certificate for the quarter ended 31 December 2025, as required under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by its registrar and share transfer agent KFin Technologies Limited, confirms that details of securities dematerialised and rematerialised during the period from 1 October to 31 December 2025 have been duly furnished to all stock exchanges where the company’s shares are listed, underscoring the company’s adherence to regulatory and disclosure norms in relation to its listed securities.