Check Before You Invest : Cholamandalam Financial Holdings Ltd

Q: Which industry/sub-sector does Cholamandalam Financial Holdings Ltd belong to?

Cholamandalam Financial Holdings Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q: Is Cholamandalam Financial Holdings Ltd a good quality company?

Cholamandalam Financial Holdings Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Cholamandalam Financial Holdings Ltd undervalued or overvalued?

Cholamandalam Financial Holdings Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 427.88, Historic Median: 350.14. Price to Book, Current: 21.52, Historic Median: 15.62. Price to Sales, Current: 377.58, Historic Median: 259.36. EV to EBITDA, Current: 349.31, Historic Median: 238.83

Q: Is Cholamandalam Financial Holdings Ltd a good buy now?

Cholamandalam Financial Holdings Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Operating Income growth is 0.23% for FY-2025, which is above its 5-year CAGR of -1.05%, indicating faster growth.

Q: Return on Assets of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Return on Asset is 4.9%, which is above its 5-year historical median of 4.5%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 74.71, Historic Median: 69.09. PPOP (%), Current: 5.06, Historic Median: 5.06. RoA (%), Current: 4.9, Historic Median: 4.5

Q: Return on Equity (ROE) of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Return on Equity is 4.9% for FY-2025, which is in line with its 5-year historical median of 4.8%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 5.06% for FY-2025, which is in line with its 5-year median(5.06%), indicating stable margins.

Q: Net Profit Margin of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 74.71% for FY-2025, which is above its 5-year median( 69.09%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Cholamandalam Financial Holdings Ltd return on invested capital (ROIC) is 4.88% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value erosion.

Check Before You Invest : Cholamandalam Financial Holdings Ltd

Snapshot

Q.1 Which industry/sub-sector does Cholamandalam Financial Holdings Ltd belong to?

Cholamandalam Financial Holdings Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Cholamandalam Financial Holdings Ltd a good quality company?

Cholamandalam Financial Holdings Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Cholamandalam Financial Holdings Ltd undervalued or overvalued?

Cholamandalam Financial Holdings Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	427.88	350.14
Price to Book	21.52	15.62
Price to Sales	377.58	259.36
EV to EBITDA	349.31	238.83

Q.4 Is Cholamandalam Financial Holdings Ltd a good buy now?

Cholamandalam Financial Holdings Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Operating Income growth is 0.23% for FY-2025, which is above its 5-year CAGR of -1.05%, indicating faster growth.

Q.2 Return on Assets of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Return on Asset is 4.9%, which is above its 5-year historical median of 4.5%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	74.71	69.09
PPOP (%)	5.06	5.06
RoA (%)	4.9	4.5

Q.3 Return on Equity (ROE) of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Return on Equity is 4.9% for FY-2025, which is in line with its 5-year historical median of 4.8%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 5.06% for FY-2025, which is in line with its 5-year median(5.06%), indicating stable margins.

Q.5 Net Profit Margin of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 74.71% for FY-2025, which is above its 5-year median( 69.09%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Cholamandalam Financial Holdings Ltd return on invested capital (ROIC) is 4.88% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Cholamandalam Financial Holdings Ltd?

Cholamandalam Financial Holdings Ltd Total Asset growth is 5.12% for FY-2025, which is above its 5-year CAGR of 0.49%, indicating faster growth.

Ownership & governance

D: Promoter shareholding and pledge status of Cholamandalam Financial Holdings Ltd?

Q.1 Promoter shareholding and pledge status of Cholamandalam Financial Holdings Ltd?

Promoters hold 46.38% of the Cholamandalam Financial Holdings Ltd, with 0.02% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Cholamandalam Financial Holdings Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Cholamandalam Financial Holdings Ltd vs Industry Peers?

Cholamandalam Financial Holdings Ltd AUM CAGR is 0.49%, compared to the 5-year industry median CAGR of 9.27%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Cholamandalam Financial Holdings Ltd vs industry peers

Cholamandalam Financial Holdings Ltd profit metrics are above the industry median level of -1.27%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	74.71	3.12
PPOP (%)	5.06	-7.72
RoA (%)	4.9	0.8

Q.3 Operating efficiency of Cholamandalam Financial Holdings Ltd vs industry peers?

Cholamandalam Financial Holdings Ltd ROCE (6.3) is above the industry median of (1.8); while the current ROE (4.8) are above than the 5-year average Industry ROE (0.9). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	74.71	3.12
PPOP (%)	5.06	-7.72
RoA (%)	4.9	0.8
ROCE (%)	6.3	1.8
ROE (%)	4.9	0.9

Valuation & price assessment

Q.1 Stock return of Cholamandalam Financial Holdings Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 13.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	13.9%	21.4%	24.6%	-12.9%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	427.88	350.14	33.75
Price to Book	21.52	15.62	0.95
Price to Sales	377.58	259.36	12.43
EV to EBITDA	349.31	238.83	10.00

Q.3 Valuation ratios of Cholamandalam Financial Holdings Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 21.52 is higher than its historical median of 15.62, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Cholamandalam Financial Holdings Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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