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Cholamandalam Investment and Finance Company Limited (CHOLAFIN) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.5T (≈ $16.4B) · ISIN INE121A01024

What is Cholamandalam Investment and Finance Company Limited really worth?

CI Cholamandalam Investment and Finance Company Limited CHOLAFIN · NSE
Price₹1,839
Fair Value₹796.52
Upside−56.7%
Quality54/100

A solid business, but trading 131% above our fair value of ₹796.52.

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Strengths

Healthy Growth (revenue 5y +26.9 %/yr)
Highly profitable · 39.7% net margin
Wide moat 76/100

Risks

!High debt · generates free cash flow
!Mixed vs. peers (6/14)
!The models disagree: range ₹436.69 to ₹2,013
!Weak on dividend: 2 out of 100

For context

·0.11% dividend yield
Evidence: High Range ₹436.69 – ₹2,013

Fair value as of: Aug 30, 2026

From 13 valuation models · updated 6 days ago

Share price −2.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide (₹436.69 to ₹2,013). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

₹1,940 ₹470.77 Fair Value ₹796.52 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range ₹470.77 – ₹1,940 · fair‑value band ₹436.69 – ₹2,013 · the ₹1,839 price screens above the ₹796.52 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Cholamandalam Investment and Finance Company Limited (CHOLAFIN) currently trades at ₹1,839, while our model-based Fair Value estimate is ₹796.52, implying the stock looks roughly 130.9% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Financial Services sector. Bull case: the Earnings-Based group reads highest at a median of ₹1,474 per share, and 3 of the 13 models we run sit above the ₹1,839 price. Bear case: the Asset-Based group reads lowest at ₹238.96, and 10 of the 13 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Cholamandalam Investment and Finance Company Limited generated revenue of ₹132B at a net margin of 39.8%. Revenue grew 24.1% year over year. It earns a return on equity of 19.3%. Net debt stands at ₹2.0T. Fundamentals as of Aug 30, 2026

Our scenario range runs from ₹436.69 (bear case) to ₹2,013 (bull case); at ₹1,839, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 42% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −48% fair-value upside, at −57%, CHOLAFIN screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹25.89 per share, which is 3.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Owner Earnings best evidence ₹1,190 ₹4,204 73
Growth DCF ₹1,716 ₹4,449 ₹10,209 71
DDM Multi-Stage ₹19.09 ₹34.15 ₹43.44 66
All 13 models by family
DCF Models
Owner Earnings best evidence ₹1,190 ₹4,204 73
5Y P/E Exit ₹52.55 ₹1,036 ₹2,274 62
10Y P/E Exit ₹575.54 ₹1,888 ₹3,954 58
Earnings-Based
Graham-Dodd ₹416.64 ₹2,906 ₹4,078 63
Lynch FV ₹1,032 ₹1,474 ₹1,916 61
Dividend Discount
Gordon GGM ₹19.09 ₹41.68 ₹70.14 65
DDM Multi-Stage ₹19.09 ₹34.15 ₹43.44 66
Multiples
P/E Multiple ₹597.39 ₹796.52 ₹995.65 63
P/B Multiple ₹374.48 ₹499.31 ₹624.14 55
Asset-Based
NCAV (Graham) ₹178.33 ₹238.96 ₹356.65 54
Growth DCF
Growth DCF ₹1,716 ₹4,449 ₹10,209 71
Rev-Margin DCF ₹19.43 ₹882.56 ₹2,344 62
Economic Profit
Residual Income ₹430.78 ₹605.07 ₹2,925 64

Widest divergence: Earnings-Based (₹1,474) versus Dividend Discount (₹34.15). Highest evidence: Owner Earnings (73).

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Key figures & financial health

P/E ratio 29.7
P/S ratio 4.94 P/E × margin
EPS (TTM) ₹61.82 price ÷ EPS = P/E 29.7
Dividend yield 0.1% payout 3.2%
Net margin 16.6% FY2026
Return on equity 19.3% TTM
More key figures
Profitability
Return on assets (EBIT) 3.4% avg 5y
Operating margin 55.3% TTM
Growth
Revenue (TTM) ₹132B TTM
Revenue growth (YoY) +24.8% 3y avg +34.8%
EPS growth (YoY) +29.0%
Balance sheet & cash flow
Free cash flow ₹148B FY2026
Net debt ₹2.0T FY2026 · ≈ 13.2 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 54 · Market factors (momentum, volatility) 74

Profitability 35
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 20
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 80
Distance to the 52-week high (market factor)
Net Issuance 75
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Cholamandalam Investment and Finance Company Limited, operates as a non-banking finance company in India. The company operates through Vehicle Finance, Loan Against Property, Home Loans, and Other Loans segments. It offers loans for commercial vehicles, passenger vehicles, two- and three- wheelers, and tractors, as well as construction equipment.

Full company description

Cholamandalam Investment and Finance Company Limited, operates as a non-banking finance company in India. The company operates through Vehicle Finance, Loan Against Property, Home Loans, and Other Loans segments. It offers loans for commercial vehicles, passenger vehicles, two- and three- wheelers, and tractors, as well as construction equipment. The company also provides secured loans against property, and home and SME loans, as well as consumer and small enterprise loans, including personal loans, professional loans, and business loans to salaried, self-employed professional and non-professional customers, and micro and small businesses. In addition, it offers gold loans, consumer durable loans, corporate insurance agencies, stockbroking and depository participants, offline payment aggregator, home extension, balance transfer of existing loans, supply chain finance, and secured term loans. Further, the company provides dealer portal services under the Gaadi Bazaar brand, which act as a hub for dealers in listing vehicles, generating leads, and applying for loans and trade advances. Additionally, it operates Payswiff, an omnichannel payment transaction solution that lets business owners accept payments from their customers in-store, at-home deliveries, online and on-the-go using mPOS, and POS solutions. The company was incorporated in 1978 and is headquartered in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Cholamandalam Investment and Finance Company Limited reported revenue of ₹315B in FY2026 versus ₹101B in FY2022, a compound +32.8%/yr. Reported net income was ₹52.3B in FY2026, compounding +24.9%/yr from FY2022.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹315B
Latest YoY
+21.8%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+34.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+26.9%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+26.4%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+27.4% (27.3 + 0.1)
Revenue +32.8%/yr
FY22 ₹101B
FY23 ₹129B
FY24 ₹192B
FY25 ₹259B
FY26 ₹315B
Net income +24.9%/yr
FY22 ₹21.5B
FY23 ₹26.6B
FY24 ₹34.2B
FY25 ₹42.6B
FY26 ₹52.3B
Character of growth · EPS growth decomposed (2015-2026) +23.5 % p.a.
Revenue per share +20.7 %

of which total revenue +22.2 % · buybacks/dilution −1.2 %

EBIT margin +2.9 %
Tax rate +1.4 %
Residual (interest, one-offs) −2.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

CHOLAFIN screens 131% overvalued. Compare with Visa Inc →

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Cite: Fair Value Calculator (2026). "Cholamandalam Investment and Finance Company Limited Fair Value". https://www.fairvalue-calculator.com/stock/CHOLAFIN

Peer Group

Credit Services · 324 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside −57% · Bottom 25%
Return on equity (TTM) 19% · Top 25%
Return on assets 2% · Below median
Net margin (TTM) 40% · Top 25%
Operating margin (TTM) 55% · Above median
Revenue growth 25% · Above median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 3.87× · Higher than 75% of peers

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 29.7× · Pricier than 75% of peers
P/B 5.07× · Pricier than 75% of peers
P/S (TTM) 11.72× · Pricier than 75% of peers
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 35.5× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 36
FUTURE100 · sector 40
PAST77 · sector 32
HEALTH0 · sector 59
DIVIDEND2 · sector 55

VALUE 0: the price sits above our fair-value range.

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V $379.66 $198.27 −48%
Mastercard Incorporated MA $591.73 $221.87 −63%
American Express Company AXP $334.16 $206.40 −38%
Capital One Financial Corporation COF $215.67 $117.51 −46%
Bajaj Finance Limited BAJFINANCE ₹1,093 ₹397.70 −64%
PayPal Holdings PYPL $61.47 $77.12 +25%
Shriram Finance Limited SHRIRAMFIN ₹1,134 ₹553.82 −51%
Synchrony Financial, SYF $78.05 $137.28 +76%
SoFi Technologies, Inc SOFI $18.06 $5.02 −72%
Tata Capital Limited TATACAP ₹375.70 ₹149.40 −60%

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Frequently asked questions

Is Cholamandalam Investment and Finance Company Limited (CHOLAFIN) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of ₹796.52 versus a price of ₹1,839, about −57% upside (overvalued).
What is the fair value of CHOLAFIN?
Our model-based fair value for Cholamandalam Investment and Finance Company Limited is ₹796.52 (as of Aug 30, 2026), built from audited fundamentals. The current price: ₹1,839.
What is the quality score of CHOLAFIN?
Cholamandalam Investment and Finance Company Limited has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
Cholamandalam Investment and Finance Company Limited reported trailing-twelve-month revenue of about ₹132B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of CHOLAFIN?
The net profit margin of Cholamandalam Investment and Finance Company Limited is about 39.8%, meaning it keeps roughly 39.8% of revenue as net income. Based on the latest reported figures.
Does Cholamandalam Investment and Finance Company Limited pay a dividend?
Cholamandalam Investment and Finance Company Limited currently shows a dividend yield of about 0.11% relative to its recent price (as of Aug 30, 2026).
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