Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: Credit Services

Cholamandalam Investment and Finance Company Limited, operates as a non-banking finance company in India. The company operates through Vehicle Finance, Loan Against Property, Home Loans, and Other Loans segments. It offers loans for commercial vehicles, passenger vehicles, two- and three- wheelers, and tractors, as well as construction equipment. The company also provides secured loans against property, and home and SME loans, as well as consumer and small enterprise loans, including personal loans, professional loans, and business loans to salaried, self-employed professional and non-professional customers, and micro and small businesses. In addition, it offers portfolio management services, such as investment solutions to individual clients; stock broking services to retail and institutional investors; and distributes insurance products and mutual funds. Further, the company provides dealer portal services under the Gaadi Bazaar brand, that acts as a hub for dealers in listing vehicles, generating leads, and applying for loans and trade advances. Additionally, it operates Payswiff, an omni channel payment transaction solution that lets business owners accept payments from their customers in-store, at home deliveries, online and on-the-go using mPOS and POS solutions. The company was incorporated in 1978 and is based in Chennai, India.

Revenue projections:

Revenue projections for CHOLAFIN
Revenue projections for CHOLAFIN

With CHOLAFIN's revenues forecasted to be lower than last year's, investors are expected to be cautious. A decline in revenue typically harms the company's bottom line, reducing profitability and making investors less confident about the company's ability to sustain its financial health.

Financial Ratios:

currentRatio 93.304000
forwardPE 18.536251
debtToEquity 693.261000
earningsGrowth 0.291000
revenueGrowth 0.241000
grossMargins 1.000000
operatingMargins 0.561110
trailingEps 61.890000
forwardEps 97.107020

Cholamandalam Investment and Finance Company Limited's current ratio is 93.304, showing the company's capacity to service its short-term debt through its cash reserves and current assets. This is a positive indicator of liquidity, suggesting Cholamandalam Investment and Finance Company Limited has no trouble covering its short-term financial obligations.
CHOLAFIN's Forward PE ratio is favorable, meaning the stock price aligns well with earnings and isn't overvalued. This allows room for growth, making it an attractive investment for those seeking potential upside while ensuring the stock is not overpriced.
CHOLAFIN's high debt-to-equity ratio indicates the company is using significant leverage, relying more on debt to finance its operations. This can lead to higher risk, especially if profitability falters or economic conditions worsen.
With earnings and revenue growth in positive territory, Cholamandalam Investment and Finance Company Limited is projected to expand its business. This strong financial performance suggests the company will continue to grow, as increased profitability and sales drive future success.
Positive gross and operating margins for Cholamandalam Investment and Finance Company Limited demonstrate the company's profitability. These margins reflect strong financial performance, with efficient operations contributing to the company's ability to generate consistent profits.
CHOLAFIN's forward EPS exceeding its trailing EPS implies that the company is projected to be more profitable this year. This suggests an improvement in financial performance, with analysts expecting CHOLAFIN to generate stronger earnings compared to the previous financial year.

Price projections:

Price projections for CHOLAFIN
Price projections for CHOLAFIN

Cholamandalam Investment and Finance Company Limited's stock price has regularly been near the lower end of projections, indicating that it may be struggling to attract investor interest. This pattern suggests a cautious sentiment surrounding the company's future performance.

Recommendation changes over time:

Recommendations trend for CHOLAFIN
Recommendations trend for CHOLAFIN


Analysts have been favoring CHOLAFIN with a buy bias recently, signaling a promising investment opportunity. This optimistic outlook may attract more investors, positioning CHOLAFIN as a desirable option for those seeking to invest their money in a stable, profitable company with strong growth potential.