Company Introduction
Headquarters Location: Chennai, India
Core Business Summary: Cholamandalam Financial Holdings Limited is a financial services company providing a range of financial products and services.
Overview
₹ 1,627
30.78
53
₹ 136,870 Cr
Company Overview
Core Products & Services: Vehicle finance, home equity loans, and other financial products
Industry Sector: Financial Services
Industry Trends
Industry Growth Next 5 Years: 10-12% CAGR
Key Demand Drivers: Growing demand for vehicle finance and home loans
Last 5 Year Cagr Industry Growth: 15%
Major Competitors: Bajaj Finance, Shriram Transport Finance, Mahindra & Mahindra Financial Services
Financials
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 4,214 | 4,694 | 5,559 | 7,108 | 8,712 | 9,583 | 10,148 | 12,884 | 19,163 | 25,846 |
| YoY % | +11.4% | +18.4% | +27.9% | +22.6% | +10.0% | +5.9% | +27.0% | +48.7% | +34.9% | |
| EBITDA | 22 | 39 | 51 | 57 | 111 | 102 | 101 | 121 | 198 | 245 |
| YoY % | +77.3% | +30.8% | +11.8% | +94.7% | -8.1% | -1.0% | +19.8% | +63.6% | +23.7% | |
| Net Profit | 575 | 718 | 918 | 1,197 | 1,054 | 1,521 | 2,154 | 2,665 | 3,420 | 4,263 |
| YoY % | +24.9% | +27.9% | +30.4% | -11.9% | +44.3% | +41.6% | +23.7% | +28.3% | +24.6% | |
| EPS | 7.36 | 9.21 | 11.76 | 15.32 | 12.86 | 18.55 | 26.23 | 32.42 | 40.72 | 50.69 |
| YoY % | +25.1% | +27.7% | +30.3% | -16.1% | +44.2% | +41.4% | +23.6% | +25.6% | +24.5% |
Growth Drivers
Historical Growth Drivers: Expansion of vehicle finance and home equity loan businesses
Future Growth Drivers: Growing demand for financial services, technology adoption, and strategic partnerships
Numbers And Examples: Vehicle finance disbursements grew by 20% in FY22, home equity loan disbursements grew by 15% in FY22
Market Position
Competitive Position: Cholamandalam Financial Holdings Limited is one of the leading NBFCs in India
Estimated Market Share: 5-6%
Technological Moat: Investment in digital platforms and data analytics
Strengths
- Diversified product portfolio
- Strong distribution network
- Robust financial performance
- Experienced management team
Weaknesses
- Cyclical exposure to automotive and real estate industries
- Competition from established players
- Regulatory risks
- Dependence on wholesale funding
Valuations
Valuations for CHOLAFIN
| Formula | Bull | Base | Bear | Margin of Safety |
|---|---|---|---|---|
| Ben Graham | ₹ 947 | ₹ 947 | ₹ 349 | -71.8% |
| Peter Lynch | – | ₹ 507 | – | -220.9% |
Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued
Outlook
Balanced Analysis: Cholamandalam Financial Holdings Limited is well-positioned to benefit from the growing demand for financial services in India, driven by its diversified product portfolio, strong distribution network, and robust financial performance. However, the company faces risks from cyclical exposure to automotive and real estate industries, competition from established players, and regulatory risks. Over the next 3-5 years, the company is expected to maintain its growth momentum, driven by its strategic initiatives and investment in digital platforms and data analytics.
Opportunities: Growing demand for financial services, expansion into new markets
Risks: Economic downturn, regulatory changes, competition
Stock Price Performance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Price | 146.49 | 194.62 | 294.70 | 301.99 | 142.85 | 562.50 | 707.75 | 778.60 | 1,185.40 | 1,468.25 |
| YoY % | +32.9% | +51.4% | +2.5% | -52.7% | +293.8% | +25.8% | +10.0% | +52.2% | +23.9% |
Stock 3 Year Rolling CAGR
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Average |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 9.67% | 14.83% | 16.16% | 10.47% | 5.22% | 10.37% | 23.60% | 26.12% | 14.56% |
| EBITDA | 32.35% | 13.48% | 29.59% | 21.41% | -3.10% | 5.86% | 25.15% | 26.51% | 18.91% |
| Net Profit | 16.88% | 18.57% | 4.71% | 8.31% | 26.90% | 20.56% | 16.66% | 16.95% | 16.19% |
| EPS | 16.91% | 18.49% | 3.03% | 6.58% | 26.82% | 20.45% | 15.79% | 16.07% | 15.52% |
| Price | 26.24% | 15.77% | -21.45% | 23.04% | 70.48% | 11.45% | 18.76% | 23.55% | 20.98% |
