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 91.943000
forwardPE 19.818584
debtToEquity 740.728000
earningsGrowth 0.181000
revenueGrowth 0.141000
grossMargins 1.000000
operatingMargins 0.555710
trailingEps 50.620000
forwardEps 0.000000

CHOLAFIN's current ratio is 91.943, 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 CHOLAFIN has no trouble covering its short-term financial obligations.
CHOLAFIN's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
Cholamandalam Investment and Finance Company Limited's elevated debt-to-equity ratio suggests the company is leveraging debt heavily, increasing its financial risk. While this can support growth, it could also lead to challenges if the company's profitability or cash flow weakens.
CHOLAFIN's positive earnings and revenue growth suggest that the company is poised for business expansion. This financial strength indicates that CHOLAFIN is expected to continue growing, with rising profits and sales contributing to its long-term success.
CHOLAFIN's positive gross and operating margins reflect its profitability and efficiency. These metrics demonstrate the company's ability to manage costs effectively while generating strong revenue, highlighting its solid financial health and operational effectiveness.

Price projections:

Price projections for CHOLAFIN
Price projections for CHOLAFIN

Cholamandalam Investment and Finance Company Limited'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 Cholamandalam Investment and Finance Company Limited's ability to achieve strong financial results.

Recommendation changes over time:

Recommendations trend for CHOLAFIN
Recommendations trend for CHOLAFIN


A recent buy bias from analysts toward CHOLAFIN may inspire confidence in investors, who could view the stock as a promising investment. This positive sentiment suggests that CHOLAFIN might be an appealing option for those looking to grow their wealth through stock market investments.