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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 511243 | NSE: CHOLAFIN

Cholamandalam Investment & Finance Company Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 11:09 pm

Market Cap 1,03,879 Cr.
Current Price 1,236
High / Low1,652/1,011
Stock P/E27.0
Book Value 255
Dividend Yield0.16 %
ROCE10.4 %
ROE20.2 %
Face Value 2.00
PEG Ratio1.09

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

View Share Price Target for Cholamandalam Investment & Finance Company Ltd

Competitors of Cholamandalam Investment & Finance Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nalin Lease Finance Ltd 46.8 Cr. 71.399.9/33.711.7 51.10.00 %17.4 %13.1 % 10.0
India Cements Capital Ltd 39.1 Cr. 18.026.4/11.243.9 8.430.00 %3.50 %8.87 % 10.0
Indergiri Finance Ltd 17.5 Cr. 34.5110/33.5 8.260.00 %7.67 %14.0 % 10.0
Fedders Holding Ltd 1,332 Cr. 77.9130/48.016.4 36.20.00 %21.1 %22.5 % 1.00
Hybrid Financial Services Ltd 37.1 Cr. 12.715.8/7.7510.0 14.30.00 %7.93 %7.57 % 5.00
Industry Average20,895.10 Cr683.2432.86584.550.17%20.11%10.34%8.69

All Competitor Stocks of Cholamandalam Investment & Finance Company Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Revenue2,5202,4792,4822,4962,5572,6052,7703,0173,3563,7414,0824,6235,007
Interest1,1401,1201,1041,0781,0461,0711,1301,3401,5431,7342,0062,2042,441
Expenses8021,0639105747956308799409129021,1741,3911,412
Financing Profit5782974688457179047607369011,1059021,0281,155
Financing Margin %23%12%19%34%28%35%27%24%27%30%22%22%23%
Other Income05601175226505293897347
Depreciation25262524242828283036393946
Profit before tax5533274438227109277597599231,1639521,0621,156
Tax %26%25%26%26%26%26%26%26%26%26%25%27%25%
Net Profit410245329611528687562563685855710773872
EPS in Rs5.002.994.017.446.438.366.846.858.3310.408.649.4010.39
Gross NPA %
Net NPA %

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
Revenue1,7842,5703,2793,7154,2144,6945,5597,1088,7129,58310,14812,88417,453
Interest9901,4101,7691,9582,0482,2282,6573,5884,5924,5764,2985,7488,386
Expenses5466889321,0611,2661,3221,4511,6322,4212,9132,9263,6214,878
Financing Profit2484725786968991,1431,4511,8881,6992,0942,9243,5154,189
Financing Margin %14%18%18%19%21%24%26%27%20%22%29%27%24%
Other Income52110230105684220302
Depreciation1022253022395157111102101121158
Profit before tax2894525546668791,1071,4011,8321,5882,0482,9083,6154,333
Tax %42%32%34%33%35%35%34%35%34%26%26%26%
Net Profit1693083684445757189181,1971,0541,5212,1542,6653,210
EPS in Rs2.554.305.146.187.369.2111.7615.3212.8618.5526.2332.4238.83
Dividend Payout %20%16%14%11%12%12%11%8%13%11%8%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)82.25%19.48%20.65%29.50%24.87%27.86%30.39%-11.95%44.31%41.62%23.72%
Change in YoY Net Profit Growth (%)0.00%-62.77%1.17%8.85%-4.63%2.99%2.54%-42.34%56.25%-2.69%-17.89%

Cholamandalam Investment & Finance Company Ltd 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:19%
5 Years:22%
3 Years:26%
TTM:42%
Compounded Profit Growth
10 Years:25%
5 Years:23%
3 Years:31%
TTM:27%
Stock Price CAGR
10 Years:29%
5 Years:31%
3 Years:26%
1 Year:7%
Return on Equity
10 Years:19%
5 Years:19%
3 Years:20%
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 Capital143143144156156156156164164164164168168
Reserves1,8092,1442,5313,5144,1424,9696,0528,0369,43611,60514,18219,42521,243
Borrowings15,26918,07519,95022,54624,07138,33050,56755,00563,73069,17497,358134,475157,943
Other Liabilities1,0071,1821,2431,6732,2307117158531,3141,5361,9232,6182,591
Total Liabilities18,22821,54423,86827,88930,59844,16757,49064,05874,64482,478113,627156,686181,945
Fixed Assets7374691201501701672832282594031,5631,669
CWIP0000041411103760130
Investments1723925161822342331,5832,0553,5624,0365,787
Other Assets17,98421,43123,77527,75330,26643,97057,26763,73272,82380,127109,602151,075174,489
Total Assets18,22821,54423,86827,88930,59844,16757,49064,05874,64482,478113,627156,686181,945

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-3,754-2,447-2,264-2,809-1,468-7,926-9,317-2,075-8,848-5,571-27,105-35,683
Cash from Investing Activity +5-83-40-137-222-60-11-54-1,7461,640-2,148-2,855
Cash from Financing Activity +4,0672,7491,8193,0311,6928,00912,1912,4528,7075,15027,46638,471
Net Cash Flow317219-485852222,862323-1,8881,218-1,787-66

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow546.00673.00914.00-18.00-21.00-23.00-37.00-49.00-53.00-61.00-67.00-94.00

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
ROE %18%17%18%18%18%19%21%15%17%20%20%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters51.57%51.55%51.55%51.52%51.50%51.49%51.47%51.46%51.43%50.37%50.35%50.33%
FIIs17.88%17.65%17.61%17.96%18.69%19.38%19.63%20.92%21.51%24.73%26.00%26.63%
DIIs22.54%22.79%23.00%22.41%21.92%21.24%21.45%20.37%20.04%18.39%17.05%16.86%
Public8.01%8.00%7.84%8.11%7.90%7.88%7.44%7.25%7.03%6.51%6.61%6.19%
No. of Shareholders1,07,4431,14,3091,20,0691,25,5251,30,8331,30,1541,21,1841,40,5461,46,8151,40,6361,55,0551,43,097

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis ELSS Tax Saver Fund10,610,3783.751256.437,634,0032024-11-2038.99%
Axis Midcap Fund7,634,0033.68903.987,634,0032024-11-200%
SBI Blue Chip Fund7,300,0002864.437,634,0032024-11-20-4.38%
Axis Bluechip Fund6,237,1902.26738.587,634,0032024-11-20-18.3%
Motilal Oswal Flexi Cap Fund6,000,0007.78710.497,634,0032024-11-20-21.4%
Canara Robeco Emerging Equities4,348,1092.59514.887,634,0032024-11-20-43.04%
Axis Focused 25 Fund4,322,3193.69511.837,634,0032024-11-20-43.38%
Aditya Birla Sun Life Flexi Cap Fund3,786,1052.29448.337,634,0032024-11-20-50.4%
HDFC Top 100 Fund - Regular Plan3,774,7591.44446.997,634,0032024-11-20-50.55%
HDFC Mid-Cap Opportunities Fund - Regular Plan3,660,3630.73433.447,634,0032024-11-20-52.05%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)41.1732.4426.2418.5513.39
Diluted EPS (Rs.)41.0632.3826.1918.5213.37
Cash EPS (Rs.)42.9534.0227.5119.7914.21
Book Value[Excl.RevalReserv]/Share (Rs.)233.15174.44143.28117.02100.01
Book Value[Incl.RevalReserv]/Share (Rs.)233.15174.44143.28117.02100.01
Revenue From Operations / Share (Rs.)227.77156.66123.46116.77106.26
PBDIT / Share (Rs.)167.01115.3288.9481.9976.73
PBIT / Share (Rs.)164.66113.8587.7280.7475.37
PBT / Share (Rs.)54.8143.9535.4024.9619.37
Net Profit / Share (Rs.)40.5932.5526.2818.5512.86
NP After MI And SOA / Share (Rs.)40.7032.4026.2218.5412.85
PBDIT Margin (%)73.3273.6072.0470.2172.21
PBIT Margin (%)72.2972.6671.0569.1470.93
PBT Margin (%)24.0628.0528.6721.3718.23
Net Profit Margin (%)17.8220.7721.2815.8812.09
NP After MI And SOA Margin (%)17.8620.6821.2315.8712.09
Return on Networth / Equity (%)17.4518.5718.2915.8412.85
Return on Capital Employeed (%)27.7624.1824.7425.1330.79
Return On Assets (%)2.182.342.612.031.64
Long Term Debt / Equity (X)1.531.681.461.721.43
Total Debt / Equity (X)6.866.795.886.646.71
Asset Turnover Ratio (%)0.140.130.120.130.14
Current Ratio (X)1.441.501.521.521.43
Quick Ratio (X)1.441.501.521.521.43
Dividend Payout Ratio (NP) (%)4.876.167.627.0015.76
Dividend Payout Ratio (CP) (%)4.605.897.286.5614.26
Earning Retention Ratio (%)95.1393.8492.3893.0084.24
Cash Earning Retention Ratio (%)95.4094.1192.7293.4485.74
Interest Coverage Ratio (X)1.521.651.701.471.37
Interest Coverage Ratio (Post Tax) (X)1.371.471.501.331.23
Enterprise Value (Cr.)227270.25156984.38123872.82104291.3860545.06
EV / Net Operating Revenue (X)11.8712.1812.2210.896.95
EV / EBITDA (X)16.1916.5516.9615.519.62
MarketCap / Net Operating Revenue (X)5.084.865.824.791.44
Retention Ratios (%)95.1293.8392.3792.9984.23
Price / BV (X)4.964.375.014.781.53
Price / Net Operating Revenue (X)5.084.865.824.791.44
EarningsYield0.030.040.030.030.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Cholamandalam Investment & Finance Company Ltd as of November 21, 2024 is: 1,393.00

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 November 21, 2024, Cholamandalam Investment & Finance Company Ltd is Undervalued by 12.70% compared to the current share price 1,236.00

Intrinsic Value of Cholamandalam Investment & Finance Company Ltd as of November 21, 2024 is: 1,737.55

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 November 21, 2024, Cholamandalam Investment & Finance Company Ltd is Undervalued by 40.58% compared to the current share price 1,236.00

Last 5 Year EPS CAGR: 24.73%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • 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 Cholamandalam Investment & Finance Company Ltd:
    1. Net Profit Margin: 17.82%
      • 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: 27.76% (Industry Average ROCE: 20.11%)
      • 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%: 17.45% (Industry Average ROE: 10.12%)
      • 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): 1.37
      • 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: 1.44
      • 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: 27 (Industry average Stock P/E: 26)
      • 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: 6.86
      • 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 Investment & Finance Company Ltd. is a Public Limited Listed company incorporated on 17/08/1978 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L65993TN1978PLC007576 and registration number is 007576. Currently Company is involved in the business activities of Other financial service activities, except insurance and pension funding activities. Company’s Total Operating Revenue is Rs. 10048.29 Cr. and Equity Capital is Rs. 164.28 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non-Banking Financial Company (NBFC)Chola Crest, No.C54-55 & Super B-4, Thiru-Vi-Ka lndustrial Estate, Guindy, Chennai (Madras) Tamil Nadu 600032investors@chola.murugappa.com
http://www.cholamandalam.com
Management
NamePosition Held
Mr. Vellayan SubbiahChairman & Non-Exe.Director
Mr. Ravindra Kumar KunduExecutive Director
Mr. M A M ArunachalamNon Executive Director
Mr. N Ramesh RajanIndependent Director
Mr. M R KumarIndependent Director
Ms. Bhama KrishnamurthyIndependent Director
Mr. Anand KumarIndependent Director

FAQ

What is the latest intrinsic value of Cholamandalam Investment & Finance Company Ltd?

The latest intrinsic value of Cholamandalam Investment & Finance Company Ltd as on 21 November 2024 is ₹1393.00, which is 12.70% higher than the current market price of ₹1,236.00.

What is the Market Cap of Cholamandalam Investment & Finance Company Ltd?

The Market Cap of Cholamandalam Investment & Finance Company Ltd is 1,03,879 Cr..

What is the current Stock Price of Cholamandalam Investment & Finance Company Ltd as on 21 November 2024?

The current stock price of Cholamandalam Investment & Finance Company Ltd as on 21 November 2024 is ₹1,236.

What is the High / Low of Cholamandalam Investment & Finance Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of Cholamandalam Investment & Finance Company Ltd stocks is 1,652/1,011.

What is the Stock P/E of Cholamandalam Investment & Finance Company Ltd?

The Stock P/E of Cholamandalam Investment & Finance Company Ltd is 27.0.

What is the Book Value of Cholamandalam Investment & Finance Company Ltd?

The Book Value of Cholamandalam Investment & Finance Company Ltd is 255.

What is the Dividend Yield of Cholamandalam Investment & Finance Company Ltd?

The Dividend Yield of Cholamandalam Investment & Finance Company Ltd is 0.16 %.

What is the ROCE of Cholamandalam Investment & Finance Company Ltd?

The ROCE of Cholamandalam Investment & Finance Company Ltd is 10.4 %.

What is the ROE of Cholamandalam Investment & Finance Company Ltd?

The ROE of Cholamandalam Investment & Finance Company Ltd is 20.2 %.

What is the Face Value of Cholamandalam Investment & Finance Company Ltd?

The Face Value of Cholamandalam Investment & Finance Company Ltd is 2.00.

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 Investment & Finance Company 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