Cholamandalam Financial Holdings Ltd (CHOLAHLDNG) AI Stock Analysis

• Market Cap: ₹310.80B
• Dividend Yield: 0.07%
• Average Volume (3M): 6.67K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.27
• 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): 0.92
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹1,614.00 ▼(-11.39% 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

Diversified retail financing mix

Operating across vehicle finance, mortgage lending and insurance creates multiple, offsetting revenue streams and lowers concentration risk. This diversified retail franchise supports durable earnings resilience as Indian vehicle and housing demand grow over the medium term.

Extensive distribution and OEM ties

A broad branch footprint and dealer/OEM partnerships provide structural originations advantage and scale in retail lending. Durable dealer linkages reduce customer acquisition costs and sustain loan flow across economic cycles, supporting medium-term growth potential.

Reasonable return on equity

ROE near 17% indicates the business can convert equity into profits effectively, reflecting profitable underwriting and operational efficiency. Sustained ROE supports reinvestment and shareholder returns if credit metrics and scale are maintained over the coming quarters.

Negative Factors

Very high financial leverage

An extremely high debt-to-equity ratio increases sensitivity to interest-rate moves and tightening funding markets. This structural leverage constrains strategic flexibility, raises refinancing risk, and can amplify earnings volatility during economic stress over the medium term.

Sharp revenue contraction

A steep decline in revenue undermines scale economics and may indicate reduced loan originations or repricing pressure. Loss of top-line scale can erode margins and profitability durability, making recovery and margin sustainability a medium-term execution challenge.

Negative operating and free cash flow

Persistent negative operating and free cash flow limit internal funding for growth, dividends or reserve buffers. Over months this forces reliance on external funding or parent support, increasing liquidity risk and constraining capital allocation flexibility.

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 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: 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 1747.43, above the 50-day MA of 1817.92, and below the 200-day MA of 1892.38, indicating a bearish trend. The MACD of -62.67 indicates Positive momentum. The RSI at 33.53 is Neutral, neither overbought nor oversold. The STOCH value of 28.77 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	₹1.38T	28.33	―	0.12%	27.30%	20.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LTF	62 Neutral	₹716.10B	25.43	―	0.91%	15.90%	4.53%
SUNDARMFIN	62 Neutral	₹586.27B	29.49	―	0.71%	15.31%	25.88%
POONAWALLA	56 Neutral	₹323.83B	90.13	―	―	34.63%	-48.50%
M&MFIN	52 Neutral	₹521.86B	21.28	―	2.83%	―	―
CHOLAHLDNG	45 Neutral	₹310.80B	13.95	―	0.07%	22.50%	8.48%

Cholamandalam Financial Holdings Ltd Corporate Events

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.

Cholamandalam Financial Holdings Secures Approval for Promoter Group Reclassification

Cholamandalam Financial Holdings Limited announced that it has received no-objection certificates from both the National Stock Exchange of India Limited and BSE Limited for the declassification of Yanmar Coromandel Agrisolutions Private Limited from its promoter group. This reclassification is in accordance with Regulation 31A of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. The move is significant as it marks a change in the company’s promoter group structure, potentially impacting its governance and stakeholder relationships.

Cholamandalam Financial to Transfer Unclaimed Shares to IEPF

Cholamandalam Financial Holdings Limited announced the proposed transfer of certain equity shares to the Investor Education and Protection Fund (IEPF). This action pertains to shares for which dividends have not been claimed or encashed for seven consecutive years, in compliance with regulatory requirements. This move underscores the company’s adherence to financial regulations and may impact shareholders who have not claimed their dividends.