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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Cholamandalam Financial Holdings Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:43 am

Market Cap 26,990 Cr.
Current Price 1,437
High / Low 2,155/989
Stock P/E13.1
Book Value 605
Dividend Yield0.04 %
ROCE10.7 %
ROE19.8 %
Face Value 1.00
PEG Ratio0.58

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Multipurpose Trading & Agencies Ltd 5.23 Cr. 10.6 13.3/7.8129.1 10.20.00 %4.44 %3.91 % 10.0
Munoth Financial Services Ltd 34.4 Cr. 67.0 81.3/54.6 21.20.00 %1.71 %1.79 % 10.0
Nam Securities Ltd 72.5 Cr. 134 198/65.6201 21.20.00 %4.16 %3.05 % 10.0
Naperol Investments Ltd 733 Cr. 1,275 2,041/801748 3,2040.00 %0.08 %0.05 % 10.0
Inani Securities Ltd 13.2 Cr. 29.0 42.0/20.59.10 42.20.00 %10.6 %6.92 % 10.0
Industry Average6,895.83 Cr1,836.483,514.445,415.950.31%15.08%16.58%7.38

All Competitor Stocks of

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales3,6453,5233,5913,5833,7263,7433,9374,2984,7255,1865,6266,3006,795
Expenses1,8472,0991,9631,5891,9211,7191,9992,1532,2122,2442,5882,8982,978
Operating Profit1,7981,4231,6281,9951,8052,0231,9382,1452,5132,9423,0383,4023,816
OPM %49%40%45%56%48%54%49%50%53%57%54%54%56%
Other Income25701185226575297897348
Interest1,1491,1281,1091,0851,0541,0791,1371,3471,5511,7432,0132,2092,445
Depreciation38393837384241424450525255
Profit before tax6133134818747329547868139701,2461,0621,2131,363
Tax %26%32%26%25%26%28%26%25%26%28%25%27%25%
Net Profit4552143576525436875826067209017928881,027
EPS in Rs11.344.478.8616.1413.2616.2314.2515.0717.6921.7219.7822.4124.88

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,4087,7248,8079,6968,0042,6888,90910,92613,13513,90014,64418,15421,836
Expenses4,7745,4225,9916,5427,0292,3774,4905,1476,5886,8077,2108,5979,942
Operating Profit1,6352,3022,8153,1549753114,4195,7786,5477,0937,4349,55811,894
OPM %26%30%32%33%12%12%50%53%50%51%51%53%54%
Other Income7525291231,538102116092221310
Interest1,0721,5201,8962,10397602,6553,5874,5924,6084,3285,7787,516
Depreciation101133159171163177078150145154176198
Profit before tax5366747891,0031,3742951,6952,1351,8062,4003,0443,8244,491
Tax %34%32%34%32%27%30%34%34%36%27%26%26%
Net Profit3524585186841,1815381,1271,4151,1651,7642,2392,8103,301
EPS in Rs14.4315.4516.6622.6855.4724.2629.3237.1229.3443.9354.4968.7181.60
Dividend Payout %21%13%12%9%9%1%4%3%2%1%1%1%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)30.11%13.10%32.05%72.66%-54.45%109.48%25.55%-17.67%51.42%26.93%25.50%
Change in YoY Net Profit Growth (%)0.00%-17.01%18.95%40.61%-127.11%163.92%-83.92%-43.22%69.08%-24.49%-1.42%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:19%
3 Years:23%
TTM:35%
Compounded Profit Growth
10 Years:19%
5 Years:21%
3 Years:29%
TTM:34%
Stock Price CAGR
10 Years:19%
5 Years:24%
3 Years:28%
1 Year:40%
Return on Equity
10 Years:18%
5 Years:18%
3 Years:19%
Last Year:20%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:31 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital37373737191919191919191919
Reserves1,6221,9142,2903,2872,7453,2913,9254,5725,3676,4277,64210,22311,342
Borrowings16,60419,46421,4311,441038,20050,44755,11763,79769,22997,191134,014157,330
Other Liabilities4,8375,8876,5794,9005,12911,89713,54616,14719,43222,09726,18132,66234,987
Total Liabilities23,10027,30230,3389,6657,89253,40767,93775,85588,61697,771131,033176,917203,678
Fixed Assets1,2581,3181,5211,3361023113064794474646231,7841,926
CWIP1642014056041411104060130
Investments1,6882,1162,6655,1416,5366,2117,5528,89311,67813,28217,53620,05822,463
Other Assets19,99023,66726,1123,1311,25446,88160,06566,47276,48183,984112,813155,063179,288
Total Assets23,10027,30230,3389,6657,89253,40767,93775,85588,61697,771131,033176,917203,678

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-3,228-1,872-1,685-500594-6,302-9,274-1,914-9,719-5,738-29,329-35,726
Cash from Investing Activity +-838-499-461193-1,263-1,825-94-96-62-135295-2,625
Cash from Financing Activity +4,4652,6431,704748-698,28712,1712,4277,6887,07327,28838,269
Net Cash Flow398272-443441-7381602,803417-2,0931,199-1,746-82

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.00-14.00-17.00-18.00974.00311.00-34.00-45.00-49.00-56.00-62.00-88.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days25252531323111223
Inventory Days71788786
Days Payable10413512599
Cash Conversion Cycle-8-32-1218323111223
Working Capital Days-14-1314-90-257-255-225-221-262-284-274-220
ROCE %13%13%13%10%7%18%11%10%10%9%10%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters48.62%48.62%48.62%48.61%48.61%48.39%48.39%47.37%47.37%47.37%47.32%47.32%
FIIs12.14%11.66%11.82%11.76%11.60%11.99%11.31%12.92%12.87%13.78%13.73%16.28%
DIIs25.32%25.64%25.64%26.54%26.57%26.56%27.15%26.71%25.96%25.24%25.51%23.01%
Government0.00%0.00%0.00%0.46%0.46%0.46%0.46%0.46%0.46%0.46%0.46%0.46%
Public13.92%14.09%13.93%12.62%12.78%12.59%12.68%12.53%13.34%13.15%12.99%12.93%
No. of Shareholders21,22621,27922,17220,96221,28921,67823,17030,62343,35832,53232,94638,454

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Growth Fund6,827,4204.12792.296,827,4202024-12-200%
Axis Small Cap Fund5,339,8973.83619.676,827,4202024-12-20-21.79%
ICICI Prudential India Opportunities Fund3,728,1073.52432.636,827,4202024-12-20-45.4%
HDFC Mid-Cap Opportunities Fund - Regular Plan3,152,9400.75365.886,827,4202024-12-20-53.82%
ICICI Prudential Banking and Financial Services2,767,5004.69321.156,827,4202024-12-20-59.46%
Nippon India Tax Saver Fund1,480,7881.35171.846,827,4202024-12-20-78.31%
ICICI Prudential Smallcap Fund1,345,6572.58156.166,827,4202024-12-20-80.29%
ICICI Prudential Value Discovery Fund1,345,2330.46156.116,827,4202024-12-20-80.3%
Nippon India Focused Equity Fund1,159,4271.88134.556,827,4202024-12-20-83.02%
Aditya Birla Sun Life Midcap Fund1,148,7023.02133.36,827,4202024-12-20-83.18%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)94.3968.7254.5043.9329.35
Diluted EPS (Rs.)94.3968.7254.4943.9329.34
Cash EPS (Rs.)217.57159.44127.67101.7269.98
Book Value[Excl.RevalReserv]/Share (Rs.)1178.06865.71726.09605.15516.88
Book Value[Incl.RevalReserv]/Share (Rs.)1178.06865.71726.09605.15516.88
Revenue From Operations / Share (Rs.)1373.99966.23780.16740.55699.77
PBDIT / Share (Rs.)782.58520.69400.94381.12348.85
PBIT / Share (Rs.)769.40511.31392.72373.37340.86
PBT / Share (Rs.)276.88203.64162.15127.8896.20
Net Profit / Share (Rs.)204.39150.07119.4693.9762.00
NP After MI And SOA / Share (Rs.)94.3868.7054.5143.9329.35
PBDIT Margin (%)56.9553.8851.3951.4649.85
PBIT Margin (%)55.9952.9150.3350.4148.71
PBT Margin (%)20.1521.0720.7817.2613.74
Net Profit Margin (%)14.8715.5315.3112.688.86
NP After MI And SOA Margin (%)6.867.116.985.934.19
Return on Networth / Equity (%)17.3016.8415.8715.3111.99
Return on Capital Employeed (%)50.2820.7040.0321.7025.46
Return On Assets (%)1.000.981.040.930.72
Long Term Debt / Equity (X)0.003.130.003.082.54
Total Debt / Equity (X)13.0912.6910.7411.8512.01
Asset Turnover Ratio (%)0.160.000.000.000.00
Current Ratio (X)1.161.511.201.521.44
Quick Ratio (X)1.161.511.201.521.44
Dividend Payout Ratio (NP) (%)5.787.759.767.0425.54
Dividend Payout Ratio (CP) (%)5.076.828.485.9820.08
Earning Retention Ratio (%)94.2292.2590.2492.9674.46
Cash Earning Retention Ratio (%)94.9393.1891.5294.0279.92
Interest Coverage Ratio (X)1.591.691.741.551.43
Interest Coverage Ratio (Post Tax) (X)1.411.491.521.381.25
Enterprise Value (Cr.)162286.57112757.5182562.5874822.4458358.84
EV / Net Operating Revenue (X)6.296.215.645.384.44
EV / EBITDA (X)11.0411.5310.9710.468.91
MarketCap / Net Operating Revenue (X)0.810.550.790.800.41
Retention Ratios (%)94.2192.2490.2392.9574.45
Price / BV (X)2.041.321.802.091.19
Price / Net Operating Revenue (X)0.810.550.790.800.41
EarningsYield0.080.120.080.070.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 1,569.88

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Undervalued by 9.25% compared to the current share price 1,437.00

Intrinsic Value of as of December 22, 2024 is: 1,926.25

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Undervalued by 34.05% compared to the current share price 1,437.00

Last 5 Year EPS CAGR: 22.70%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -175.08, which is a positive sign.
  2. The company has shown consistent growth in sales (10.54 cr) and profit (177.85 cr) over the years.
  1. The stock has a low average ROCE of 11.25%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 0.92, which may not be favorable.
  3. The company has higher borrowings (55,712.69) compared to reserves (4,972.85), which may suggest financial risk.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 14.87%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 50.28% (Industry Average ROCE: 14.89%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.3% (Industry Average ROE: 15.33%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.41
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.16
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 13.1 (Industry average Stock P/E: 2)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 13.09
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Cholamandalam Financial Holdings Ltd. is a Public Limited Listed company incorporated on 09/09/1949 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L65100TN1949PLC002905 and registration number is 002905. Currently Company is involved in the business activities of Trusts, funds and other financial vehicles. Company’s Total Operating Revenue is Rs. 83.51 Cr. and Equity Capital is Rs. 18.77 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & Investments'Dare House', No. 234, NSC Bose Road, Chennai (Madras) Tamil Nadu 600001investorservices@cfhl.murugappa.com
http://www.cholafhl.com
Management
NamePosition Held
Mr. M M MurugappanChairman & Non-Exe.Director
Mr. Sridharan RangarajanNon Executive Director
Mr. Vellayan SubbiahNon Executive Director
Mrs. Vasudha SundararamanIndependent Director
Mr. B RamaratnamIndependent Director
Mr. K BalasubramanianIndependent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹1569.88, which is 9.25% higher than the current market price of ₹1,437.00. The stock has a market capitalization of 26,990 Cr. and recorded a high/low of 2,155/989 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹11,342 Cr and total liabilities of ₹203,678 Cr.

What is the Market Cap of ?

The Market Cap of is 26,990 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 1,437.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 2,155/989.

What is the Stock P/E of ?

The Stock P/E of is 13.1.

What is the Book Value of ?

The Book Value of is 605.

What is the Dividend Yield of ?

The Dividend Yield of is 0.04 %.

What is the ROCE of ?

The ROCE of is 10.7 %.

What is the ROE of ?

The ROE of is 19.8 %.

What is the Face Value of ?

The Face Value of is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE