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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Cholamandalam Financial Holdings Ltd

About the Company - Cholamandalam Financial Holdings Ltd

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. Vellayan SubbiahNon Executive Director
Mr. Sridharan RangarajanNon Executive Director
Mr. B RamaratnamIndependent Director
Mrs. Vasudha SundararamanIndependent Director
Mr. K BalasubramanianIndependent Director

Basic Stock Data of Cholamandalam Financial Holdings Ltd

Last Updated: May 30, 2024, 5:52 am

Market Cap 20,235 Cr.
Current Price 1,076
High / Low1,296/775
Stock P/E11.4
Book Value 545
Dividend Yield0.05 %
ROCE10.7 %
ROE19.8 %
Face Value 1.00
PEG Ratio0.50

Cholamandalam Financial Holdings Ltd Quarterly Results

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: May 7, 2024, 11:31 pm

Cholamandalam Financial Holdings Ltd Quarterly Chart

Cholamandalam Financial Holdings Ltd Profit & Loss

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%

Cholamandalam Financial Holdings Ltd Profit & Loss Yearly Chart

Cholamandalam Financial Holdings Ltd Growth

Compounded Sales Growth
10 Years:11%
5 Years:19%
3 Years:23%
TTM:42%
Compounded Profit Growth
10 Years:19%
5 Years:21%
3 Years:29%
TTM:37%
Stock Price CAGR
10 Years:20%
5 Years:18%
3 Years:20%
1 Year:33%
Return on Equity
10 Years:18%
5 Years:18%
3 Years:19%
Last Year:20%

Last Updated: May 15, 2024, 7:43 am

Cholamandalam Financial Holdings Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital37373737371919191919191919
Reserves1,2731,6221,9142,2903,2872,7453,2913,9254,5725,3676,4277,6428,457
Preference Capital00050000000000
Borrowings12,28416,60419,46420,9311,441038,20050,44755,11763,79769,22997,191119,254
Other Liabilities3,2564,8375,8877,0794,9005,12911,89713,54616,14719,43222,09726,18128,895
Total Liabilities16,85023,10027,30230,3389,6657,89253,40767,93775,85588,61697,771131,033156,624
Fixed Assets7921,2581,3181,5211,336102311306479447464623710
CWIP4216420140560414111040600
Investments1,1301,6882,1162,6655,1416,5366,2117,5528,89311,67813,28217,53618,367
Other Assets14,88619,99023,66726,1123,1311,25446,88160,06566,47276,48183,984112,813137,547
Total Assets16,85023,10027,30230,3389,6657,89253,40767,93775,85588,61697,771131,033156,624

Cholamandalam Financial Holdings Ltd Reserves and Borrowings Chart

Cholamandalam Financial Holdings Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -3,094-3,228-1,872-1,685-500594-6,302-9,274-1,914-9,719-5,738-29,329
Cash from Investing Activity -263-838-499-461193-1,263-1,825-94-96-62-135-257
Cash from Financing Activity 3,5954,4652,6431,704748-698,28712,1712,4277,6887,07327,840
Net Cash Flow239398272-443441-7381602,803417-2,0931,199-1,746

Cholamandalam Financial Holdings Ltd 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-14-1314-90-257-255-225-221-262-284-274-150
ROCE %13%13%13%10%7%18%11%10%10%9%10%

Cholamandalam Financial Holdings Ltd Financial Efficiency Indicators Chart

No valid data available for the Shareholding

Cholamandalam Financial Holdings Ltd Shareholding Pattern Chart

No. of Cholamandalam Financial Holdings Ltd Shareholders

Cholamandalam Financial Holdings Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Growth Fund6,827,4204.12792.29
Axis Small Cap Fund5,339,8973.83619.67
ICICI Prudential India Opportunities Fund3,728,1073.52432.63
HDFC Mid-Cap Opportunities Fund - Regular Plan3,152,9400.75365.88
ICICI Prudential Banking and Financial Services2,767,5004.69321.15
Nippon India Tax Saver Fund1,480,7881.35171.84
ICICI Prudential Smallcap Fund1,345,6572.58156.16
ICICI Prudential Value Discovery Fund1,345,2330.46156.11
Nippon India Focused Equity Fund1,159,4271.88134.55
Aditya Birla Sun Life Midcap Fund1,148,7023.02133.3

Cholamandalam Financial Holdings Ltd ROCE Trend

Cholamandalam Financial Holdings Ltd EPS Trend

Cholamandalam Financial Holdings Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)68.7254.5043.9329.3537.00
Diluted EPS (Rs.)68.7254.4943.9329.3437.00
Cash EPS (Rs.)159.44127.67101.7269.9879.47
Book Value[Excl.RevalReserv]/Share (Rs.)865.71726.09605.15516.88418.97
Book Value[Incl.RevalReserv]/Share (Rs.)865.71726.09605.15516.88418.97
Revenue From Operations / Share (Rs.)966.23780.16740.55699.77582.08
PBDIT / Share (Rs.)520.69400.94381.12348.85308.98
PBIT / Share (Rs.)511.31392.72373.37340.86304.83
PBT / Share (Rs.)203.64162.15127.8896.20113.73
Net Profit / Share (Rs.)150.07119.4693.9762.0075.32
NP After MI And SOA / Share (Rs.)68.7054.5143.9329.3537.12
PBDIT Margin (%)53.8851.3951.4649.8553.08
PBIT Margin (%)52.9150.3350.4148.7152.36
PBT Margin (%)21.0720.7817.2613.7419.53
Net Profit Margin (%)15.5315.3112.688.8612.93
NP After MI And SOA Margin (%)7.116.985.934.196.37
Return on Networth / Equity (%)16.8415.8715.3111.9917.66
Return on Capital Employeed (%)20.7040.0321.7025.4619.48
Return On Assets (%)0.981.040.930.721.02
Long Term Debt / Equity (X)3.130.003.082.544.65
Total Debt / Equity (X)12.6910.7411.8512.0112.79
Current Ratio (X)1.511.201.521.441.71
Quick Ratio (X)1.511.201.521.441.71
Dividend Payout Ratio (NP) (%)7.759.767.0425.5416.14
Dividend Payout Ratio (CP) (%)6.828.485.9820.0814.52
Earning Retention Ratio (%)92.2590.2492.9674.4683.86
Cash Earning Retention Ratio (%)93.1891.5294.0279.9285.48
Interest Coverage Ratio (X)1.691.741.551.431.62
Interest Coverage Ratio (Post Tax) (X)1.491.521.381.251.39
Enterprise Value (Cr.)112757.5182562.5874822.4458358.8459413.50
EV / Net Operating Revenue (X)6.215.645.384.445.44
EV / EBITDA (X)11.5310.9710.468.9110.24
MarketCap / Net Operating Revenue (X)0.550.790.800.410.82
Retention Ratios (%)92.2490.2392.9574.4583.85
Price / BV (X)1.321.802.091.192.28
Price / Net Operating Revenue (X)0.550.790.800.410.82
EarningsYield0.120.080.070.100.07

Cholamandalam Financial Holdings Ltd Profitability Ratios (%)

Cholamandalam Financial Holdings Ltd Liquidity Ratios

Cholamandalam Financial Holdings Ltd Liquidity Ratios (%)

Cholamandalam Financial Holdings Ltd Interest Coverage Ratios (%)

Cholamandalam Financial Holdings Ltd Valuation Ratios

Fair Value

Fair Value: ₹1,230.79

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.

Undervalued: 14.39% compared to the current price ₹1076

Intrinsic Value: ₹1,510.18

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 40.35% compared to the current price ₹1076

Last 5 Year EPS CAGR: 22.70%

*Investments are subject to market risks

Strength and Weakness of Cholamandalam Financial Holdings Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -169.25, which is a positive sign.
  2. The company has higher reserves (4,062.46 cr) compared to borrowings (38.46 cr), indicating strong financial stability.
  3. 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 10.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 0.92, which may not be favorable.

FAQ

What is the latest fair value of Cholamandalam Financial Holdings Ltd?

The latest fair value of Cholamandalam Financial Holdings Ltd is ₹1230.79.

What is the Market Cap of Cholamandalam Financial Holdings Ltd?

The Market Cap of Cholamandalam Financial Holdings Ltd is 20,235 Cr..

What is the current Stock Price of Cholamandalam Financial Holdings Ltd as on 19 May 2024?

The current stock price of Cholamandalam Financial Holdings Ltd as on 19 May 2024 is 1,076.

What is the High / Low of Cholamandalam Financial Holdings Ltd stocks in FY 2024?

In FY 2024, the High / Low of Cholamandalam Financial Holdings Ltd stocks is ₹1,296/775.

What is the Stock P/E of Cholamandalam Financial Holdings Ltd?

The Stock P/E of Cholamandalam Financial Holdings Ltd is 11.4.

What is the Book Value of Cholamandalam Financial Holdings Ltd?

The Book Value of Cholamandalam Financial Holdings Ltd is 545.

What is the Dividend Yield of Cholamandalam Financial Holdings Ltd?

The Dividend Yield of Cholamandalam Financial Holdings Ltd is 0.05 %.

What is the ROCE of Cholamandalam Financial Holdings Ltd?

The ROCE of Cholamandalam Financial Holdings Ltd is 10.7 %.

What is the ROE of Cholamandalam Financial Holdings Ltd?

The ROE of Cholamandalam Financial Holdings Ltd is 19.8 %.

What is the Face Value of Cholamandalam Financial Holdings Ltd?

The Face Value of Cholamandalam Financial Holdings Ltd 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 Cholamandalam Financial Holdings Ltd. 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