X

Cholamandalam Investment & Finance Company Ltd. Stock Analysis

Large Cap
Evaluated by 2316 users | BSE: 511243 | NSE: CHOLAFIN |
Finance - NBFC

Cholamandalam Investment and Finance Company Limited (Chola) incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Cholamandalam Investment & Finance Company Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)1,1871,7652,5543,2623,6904,1924,6605,4796,9928,653
Y-o-Y Gr. Rt.-48.8%44.7%27.7%13.1%13.6%11.1%17.6%27.6%23.8%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
1.042.64.285.086.027.259.211.7515.1712.84
Y-o-Y Gr. Rt.-150%64.6%18.7%18.5%20.4%26.9%27.7%29.1%-15.4%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
17.9721.3827.4632.0537.246.8554.8365.2278.7599.34
Y-o-Y Gr. Rt.-19%28.4%16.7%16.1%25.9%17%19%20.8%26.2%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)0.741.481.91.771.832.12.432.482.361.75
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Cholamandalam Investment & Finance Company Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income24.7%18.6%22.9%23.8%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
32.2%16.4%11.8%-15.4%
Book Value per Share
20.9%21.7%21.9%26.2%
Share Price 34.8% 24.7% 14.8% 24.8%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0.590.260.230.72.032.353.71.700
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)16.6718.0819.0417.2321.2419.6818.6418.3600
Margins
Net Profit Margin (%) 5.249.771211.1611.7913.5615.4316.7616.9612.16
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 7.9913.8618.1317.0917.5217.9618.119.5721.0814.72
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 51.64%
Institutions 40.46%
Non-Institutions 7.90%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Cholamandalam Investment & Finance Company Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Cholamandalam Investment & Finance Company Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Cholamandalam Investment & Finance Company Ltd.'s performance infers:

Cholamandalam Investment & Finance Company Ltd. earnings have grown by 16.4%, whereas share price has appreciated 24.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Cholamandalam Investment & Finance Company Ltd. share prices over the last 10 years. Here is what we found out:

Cholamandalam Investment & Finance Company Ltd. share price has appreciated 27.5% annually over the past ten years.

Cholamandalam Investment and Finance Company Limited (Chola) incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers. The Company is listed on Bombay

Cholamandalam Investment and Finance Company Limited (Chola) incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers. The Company is listed on Bombay Stock Exchange and National Stock Exchange.

Business area of the company

The Company is one of the premier diversified non-banking finance companies in India, engaged in providing vehicle finance, home loans and Loan against property.

Products/ Services

  • Vehicle Loans
  • Loans against property
  • Home Loans
  • SME Loans
  • Rural & Agri Loans
  • Wealth Management
  • Securities

Awards

2015-16:

  • Mahindra Transport Excellence Awards 2015 for ‘Commercial Vehicle Financier of the year’ under the category Driving Positive Change
  • Daimler India Commercial Vehicles Award 2015 for ‘Best Financier in Lead Generation’

2016-17:

  • Chola has won The Golden Globe Tigers Award for Excellence & Leadership in CSR

2017-18:

  • Chola recognized as one of the Top 26 Innovative Organizations in India
  • Chola wins The Star Award
  • National Award for Excellence in CSR
  • Golden Tigers Award for CSR Excellence
  • Best Corporate Award (Medium Companies Category)

2018-19:

  • The company was awarded as the Winner in Large service category in the employee relations and employee engagement category in the National HR circle competition conducted by Confederation of Indian Industry (CII). The award for the interventions focused on organization culture transformation.

2019-20:

  • Awarded as winner in the Employee Relations & Employee Engagement category (Large Service Industry) at the CII National HR Circle Competition.
  • Chola won the second place for Digitization in L&D- HR at the CII National HR Circle Competition 2019.

Milestones:

2015:

  • Chola and Eicher Polaris Pvt Ltd Announces their Strategic Partnership for Multix
  • Chola ties up with Ola to offer daily loan repayment to its drivers
  • Cholamandalam Investment and Finance Company Limited partners with Escorts Limited to provide loans on Construction Equipment

2016:

  • Chola expands its footprint in Bihar - Hajipur/Bihar
  • Chola expands its footprint in Maharashtra by opening four new branches - Maharashtra / Mumbai
  • Chola expands its footprints in Karnataka by opening four new branches - Bengaluru

2017:

  • Chola inks Strategic Alliance with HUDCO

2019:

  • IFC Channels $222 million into Cholamandalam to Boost Finance for Small Road Transport Operators and MSMEs

2020:

  • Chola partners with Sri Sathya Sai Sanjeevani Hospitals
  • Chola partners with Maruti Suzuki for Vehicle Finance
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback