Cholamandalam Investment and Finance Company Ltd
Ticker: CHOLAFIN
Decent
68/100
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Investing Reference
Price
1698.40
Market Cap
143284.07
Debt/Equity
7.3953
ROE %
19.706
PB
6.0537
Promoter %
49.902
Pledge %
0.000
1Y Rev Growth %
34.670
5Y Rev Growth %
24.587
NP Margin %
16.299
NP Margin 5Y Avg %
18.214
Trading Reference
1M Return %
8.951
6M Return %
8.851
1Y Return %
12.997
% Away 52W High
0.565
% Away 52W Low
45.411
Daily Volume
2004535
Investment Verdict
Risky
Score 56/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Momentum
Score 70/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Cholamandalam Investment and Finance Company Ltd is currently trading near a key support level, with the 50-day EMA indicating a potential upward trend. If it breaks above the resistance level, there is a strong probability of upward movement, while failure to hold the support could lead to a decline.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Cholamandalam Investment and Finance Company Ltd is a leading financial services provider in India, catering to a diverse clientele including individuals and businesses. With a strong focus on vehicle financing, home loans, and SME financing, it plays a crucial role in empowering economic growth. The company is known for its robust customer service and innovative financial solutions, making it a trusted partner for financial needs.
- Established player in the Indian finance sector
- Offers a wide range of financial products
- Focus on customer-centric solutions
- Strong track record of growth and stability
- Empowers individuals and businesses through finance
Investment Thesis
Cholamandalam Investment and Finance Company Ltd stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This combination positions the company well for sustained growth and profitability, making it a compelling investment opportunity.
- Strong backing from the Murugappa Group enhances credibility and trust.
- Significant focus on digital transformation driving operational efficiency and customer engagement.
- Attractive valuation metrics compared to industry peers suggest potential for upside.
- Diversified financial services portfolio reduces risk and enhances revenue streams.
- Consistent track record of growth and profitability reinforces long-term investment appeal.
Opportunity vs Risk
Opportunities
- Strong growth in retail financing
- Expanding digital services
- Rising demand for vehicle loans
- Diversification into new sectors
Risks ⚠️
- Economic slowdown impacts loan demand
- High competition in finance sector
- Regulatory changes affecting operations
- Asset quality deterioration concerns
Peer Perspective
Cholamandalam Investment trades at a slight premium to peers like Muthoot Finance and HDFC Ltd, reflecting its strong growth potential. A sustained improvement in margins could trigger a favorable rerating in the near term.
Future Outlook
Cholamandalam Investment and Finance Company Ltd is well-positioned for growth, driven by strong demand in the financing sector; however, successful execution and effective cost control will be crucial to achieving sustained profitability.
AI FAQs for Retail Users
- Q: What does Cholamandalam Investment and Finance Company Ltd do?A: It provides financial services including loans, investment, and insurance products.
- Q: Is Cholamandalam a good investment?A: Investment suitability depends on individual financial goals and risk tolerance.
- Q: How often does Cholamandalam pay dividends?A: Dividends are declared based on company performance and board decisions, typically annually.
- Q: What are the risks of investing in Cholamandalam?A: Risks include market volatility, economic conditions, and company-specific performance factors.
- Q: Where can I find Cholamandalam's financial reports?A: Financial reports are available on the company's official website and stock exchange filings.
📊 Stock Investment Checklist (100 Points)
Cholamandalam Investment and Finance Company Ltd • Updated: 2025-09-16 20:13:03
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10BusinessHighThe company operates in the financial services sector, which is evolving with digital transformation, but faces competition.
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10GrowthHighConsistent revenue growth over the past few years, but profit growth has been volatile.
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10ProfitabilityHighROE and ROCE are decent, but OCF has shown some inconsistency compared to net profit.
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8ValuationHighP/E and P/B ratios are higher than some peers, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is strong, but there are concerns about pledging.
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5DriversGoodGrowth drivers exist, but execution risks are significant due to market volatility.
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5TechnicalsGoodMarket sentiment is mixed, with some recent positive momentum.
Final Score & Verdict
Score 68 / 100
• Decent
Cholamandalam Investment and Finance Company Ltd shows decent growth potential but faces challenges in profitability and valuation metrics.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100