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 18.706722
debtToEquity 740.728000
earningsGrowth 0.181000
revenueGrowth 0.141000
grossMargins 1.000000
operatingMargins 0.555710
trailingEps 50.550000
forwardEps 0.000000

With a current ratio of 91.943, CHOLAFIN has the liquidity needed to easily service its short-term debt. The company's cash reserves and current assets are sufficient, indicating that CHOLAFIN is in a strong position to meet its immediate financial obligations without difficulty.
CHOLAFIN's Forward PE is within a good range, showing that the stock price compares well to its earnings. This suggests it isn't overpriced and leaves room for growth, making the stock appealing to investors looking for value and growth opportunities.
CHOLAFIN's high debt-to-equity ratio indicates significant leverage, meaning the company has more debt compared to its equity. While this can accelerate growth, it also increases financial risk if revenue or profits decline.
Cholamandalam Investment and Finance Company Limited's positive earnings and revenue growth suggest the company is on a path to business expansion. This upward trend signals strong financial health, indicating that Cholamandalam Investment and Finance Company Limited is well-positioned for sustained growth in both profits and revenue.
CHOLAFIN's positive gross and operating margins suggest that the company is operating profitably. These strong margins indicate effective cost management and revenue generation, contributing to a solid financial foundation.

Price projections:

Price projections for CHOLAFIN
Price projections for CHOLAFIN

The price of CHOLAFIN has often been situated close to the lower end of projections. This consistent trend may signal difficulties for the company in achieving investor expectations for future performance.

Recommendation changes over time:

Recommendations trend for CHOLAFIN
Recommendations trend for CHOLAFIN


Analysts have shown a buy bias for CHOLAFIN, signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to CHOLAFIN, seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.