Cholamandalam Investment and Finance Company Ltd.
NSE: CHOLAFINCholamandalam Investment and Finance Company Ltd.: A 30-second snapshot
Cholamandalam Investment and Finance (CHOLAFIN) is an NBFC with a trailing PE of 24.1 and forward PE of 15.4, ROE of 19.3%, and 5-year earnings CAGR of 29.1%. The stock trades at ₹1,537.7, approximately 4.9% below its 200-DMA of ₹1,616.69, and has returned -6.4% over the past 12 months. Debt-to-equity of 693.3 reflects the leverage-intensive nature of NBFC lending, with the debt trend recorded as rising.
P/E
24.1
Forward P/E
15.4
ROE
+19.3%
Debt / Equity
693.26
Profit Margin
+39.8%
Div. Yield
+0.1%
5Y ROE > 15%
4/5
5Y FCF > 0
0/5
Quality
59/100
News
8 headlines · 0 positive · 0 negative
Cholamandalam Investment & Finance Sees Sharp Open Interest Surge Amid Bullish Momentum - Markets Mojo
Markets Mojo
Cholamandalam Investment Sees Sharp Open Interest Surge Signalling Market Positioning Shift - Markets Mojo
Markets Mojo
Cholamandalam Investment & Finance Sees Sharp Open Interest Surge Amid Bullish Momentum - Markets Mojo
Markets Mojo
Cholamandalam Investment & Finance Sees Sharp Open Interest Surge Amid Bullish Market Positioning - Markets Mojo
Markets Mojo
Cholamandalam Investment Sees Sharp Open Interest Surge Amid Mixed Technical Signals - Markets Mojo
Markets Mojo
Recent context
- ·Recent news flow (8 articles, all neutral) is concentrated on open-interest surges from Markets Mojo; no substantive analyst commentary, management guidance updates, or regulatory developments are represented in the tracked sample.
- ·The forward PE of 15.4 versus trailing PE of 24.1 implies the market is pricing in material earnings growth over the next 12 months; the 5-year earnings CAGR of 29.1% provides historical context for that expectation.
- ·Stock has declined from a 52-week high, with current price representing a 16.0% drawdown; nearest identified support levels are ₹1,525.9, ₹1,491.0, and ₹1,472.3, while resistance sits at ₹1,605.6, ₹1,734.8, and ₹1,774.6.
Strengths
- +ROE of 19.3% ranks 1st among 6 Banking/NBFC sector peers, ahead of BAJFINANCE (17.9%), AXISBANK (13.2%), HDFCBANK (13.8%), BAJAJFINSV (14.6%), and HDFCLIFE (11.3%).
- +5-year earnings CAGR of 29.1% and revenue CAGR of 24.1% demonstrate sustained top-line and bottom-line expansion over a multi-year horizon.
- +Quality score of 58 ranks 1st among 6 sector peers, and forward PE of 15.4 represents a 36% discount to trailing PE of 24.1, implying earnings growth expectations are embedded in the current multiple.
- +Analyst mean rating of 1.59 across 34 analysts (1–5 scale, lower = more constructive), with a sample size of 34 providing relatively broad coverage.
Weaknesses
- −FCF has been positive in 0 of the available measurement years; the business has funded its entire expansion through external capital, leaving it exposed to funding-market disruptions and rising credit spreads.
- −Debt-to-equity of 693.3 is rising over the measured period; while NBFC lending businesses carry structural leverage, a rising trend in an already high-leverage environment amplifies downside in a credit tightening cycle.
- −Price is below the 200-DMA (₹1,616.69) and has declined 11.4% over 3 months, indicating intermediate-term negative price momentum relative to its own longer-term trend.
- −Quality score of 58 is mid-range on an absolute basis; consistency score of 63 and only 4 of available years with ROE above 15% indicate the strong return record is not fully uniform across all measured periods.
Open questions
- ?Given that FCF has been zero in every recorded year, what is the composition of capital sources funding CHOLAFIN growth, and how sensitive is the cost of that capital to a 100–200 bps rise in market rates?
- ?The 5-year earnings CAGR of 29.1% has not been reflected in the 12-month stock return of -6.4%; what changed in the market or business environment over the past year that may explain this divergence?
- ?With debt-to-equity at 693.3 and a rising trend, how does CHOLAFIN compare to RBI-prescribed NBFC leverage norms, and what are the regulatory headroom indicators to watch?
- ?Does the forward PE of 15.4 embed a slowdown in disbursement growth, an improvement in credit costs, or both — and which of those assumptions is more sensitive to the current macro environment?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CHOLAFIN | Cholamandalam Investment and Finance Company Ltd.You're viewing | 24.1 | +19.3% | 58 |
| Industry avg | across 5 peers | 31.2 | +14.2% | 39 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.1 | +17.9% | 53 |
| AXISBANK | Axis Bank Ltd. | 15.1 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 16.6 | +13.8% | 50 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.8 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 66.2 | +11.3% | 20 |
Technical state
Current price
₹1,537.70
SMA 50
₹1,533.37
SMA 200
₹1,616.69
RSI (14)
46.4 (neutral)
From 52w high
-16.0%
1Y return
-6.4%
3M return
-11.4%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 693.3 reflects structural NBFC leverage; the debt trend is recorded as rising over the measured period, amplifying sensitivity to credit-cycle tightening, liquidity squeezes, or adverse RBI regulatory action on NBFC funding.
- highFCF-positive years: 0 across the full available measurement period. Expansion has been funded entirely through external capital; this creates material refinancing risk if credit spreads widen or wholesale funding markets tighten.
- mediumPrice of ₹1,537.7 is 4.9% below the 200-DMA of ₹1,616.69 and has declined 11.4% over 3 months and 6.4% over 12 months, indicating sustained intermediate-term price weakness relative to its own trend.
- lowAll 8 news articles over the tracked period are neutral in sentiment and concentrated from a single source (Markets Mojo) covering open-interest movements; substantive coverage of business fundamentals, management commentary, or regulatory developments is absent from the sample.
- low1-year price change data is unavailable for all 5 sector peers, making relative price-performance ranking against the Banking/NBFC peer set impossible with current data.
Cross-section contradictions
- ROE of 19.3% ranks 1st among 6 sector peers and has exceeded 15% in 4 of the available years, yet FCF has been negative every recorded year — a divergence where strong return metrics coexist with complete reliance on external capital for growth.
- 5-year earnings CAGR of 29.1% and 5-year revenue CAGR of 24.1% have not translated into 12-month price appreciation; the stock is down 6.4% over one year, suggesting price has materially lagged the earnings compounding rate.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days