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 112.66400
forwardPE 20.59003
debtToEquity 724.31100
earningsGrowth 0.19700
revenueGrowth 0.19600
grossMargins 0.99913
operatingMargins 0.50852
trailingEps 55.05000
forwardEps 79.80561

CHOLAFIN's current ratio being 112.664 suggests that the company has no issue servicing its short-term debt. Its strong liquidity position, supported by sufficient cash reserves and current assets, ensures that CHOLAFIN can meet its financial obligations with ease.
CHOLAFIN's Forward PE is well-positioned, indicating the stock price is favorable compared to its earnings. This suggests the stock is not overpriced and offers room for growth, making it an attractive option for investors looking for future value appreciation.
CHOLAFIN's high debt-to-equity ratio points to a heavily leveraged company, with more debt than equity in its capital structure. While this can boost growth, it increases financial vulnerability in times of economic difficulty.
CHOLAFIN's positive earnings and revenue growth reflect a strong outlook for the company's business expansion. The company is expected to continue growing, with increasing profitability and sales driving further growth in the near future.
Cholamandalam Investment and Finance Company Limited's positive gross and operating margins highlight its profitability and operational efficiency. These strong margins demonstrate the company's ability to control costs while generating substantial revenue, contributing to a healthy financial performance.
CHOLAFIN's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that CHOLAFIN is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for CHOLAFIN
Price projections for CHOLAFIN

CHOLAFIN's price projections have been consistently revised upward, suggesting that analysts are becoming increasingly optimistic about the company's future. This trend reflects confidence in CHOLAFIN's ability to achieve strong financial results.

Recommendation changes over time:

Recommendations trend for CHOLAFIN
Recommendations trend for CHOLAFIN


Cholamandalam Investment and Finance Company Limited has been receiving a buy bias from analysts, indicating confidence in its investment potential. This could drive more investors to view Cholamandalam Investment and Finance Company Limited as a reliable choice for their money, offering a promising avenue for future growth and financial gains.