Cholamandalam Investment and Finance Company Ltd.
Banking · NSE
52-week range
₹1,299 – ₹1,830
From 52w high
-8.5%
RSI (14)
62.0
vs SMA 50 / 200
↑ 50 · ↑ 200
Cholamandalam Investment and Finance (CHOLAFIN) is an NBFC with trailing PE of 29.1 (forward PE 16.8), ROE of 19.3%, and 5-year earnings CAGR of 29.1%. The stock trades at ₹1,674, above both its 50-DMA (₹1,561) and 200-DMA (₹1,614), with RSI at 62 and a 52-week drawdown of 8.5%. FY26 profit grew 22.6% with a 35% dividend recommended, though the balance sheet carries D/E of 693.3 and zero free-cash-flow years on record.
- ✓ROE of 19.3% ranks 1st among 6 sector peers (AXISBANK 13.2%, BAJFINANCE 17.9%, HDFCBANK 13.8%), with 4 of available measurement years above the 15% threshold.
- ✓5-year revenue CAGR of 24.1% and earnings CAGR of 29.1% indicate sustained top-line and bottom-line compounding over the medium term.
- ✓Trailing PE of 29.1 is below BAJFINANCE (31.3) and BAJAJFINSV (30.3), and forward PE compresses to 16.8, reflecting the market pricing in continued earnings growth.
- ✓Quality score of 53 ranks 1st among 6 sector peers, ahead of BAJFINANCE (51), AXISBANK (50), and HDFCBANK (47).
- ✗D/E of 693.3 is structurally very high; while NBFC leverage norms differ from industrial companies, the rising debt trend increases sensitivity to credit tightening and liquidity risk.
- ✗Free cash flow has been negative every year in the recorded period — all growth has been funded externally, meaning the business is dependent on continuous capital market access.
- ✗Dividend yield stands at 0.12%, offering negligible income return relative to the risk profile of a leveraged NBFC.
- ✗News coverage is concentrated in earnings-period TradingView summaries (5 articles total); absence of independent investigative or sector coverage limits the depth of qualitative signal available.
- ·Q4 FY2026 results reported strong disbursement and AUM growth alongside improved asset quality metrics, with management guidance described as positive for FY2027.
- ·Full-year FY26 profit growth was 22.6%, and the board recommended a 35% dividend — the payout is modest in absolute yield terms given the share price.
- ·The stock is up 9.5% over 12 months but down 3.7% over the past 3 months, trading above both key moving averages with the nearest resistance cluster at ₹1,775–₹1,830.
- ?Does CHOLAFIN's 29.1% earnings CAGR reflect a structural competitive advantage in vehicle and consumer lending, or is it primarily a function of the NBFC credit expansion cycle of the past five years?
- ?With D/E at 693.3 and zero FCF years on record, how would the business model perform under a scenario of rising cost of funds or tightening RBI liquidity norms?
- ?The forward PE of 16.8 implies meaningful earnings growth already priced in — what are the key risks to the market's implicit earnings forecast?
- ?How does CHOLAFIN's asset quality trajectory (NPA trends, provision coverage) compare to NBFC peers, and what early indicators would signal deterioration?
PE
29.1
Forward PE
16.8
ROE
+19.3%
Profit margin
+39.8%
D/E
693.26
Dividend yield
+0.1%
Quality score
53/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
0/5 yrs
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.Analysis generated 10 May 2026.