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?
A solid business, but trading 131% above our fair value of ₹796.52.
Strengths
Risks
For context
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)
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.
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.
All 13 models by family
Widest divergence: Earnings-Based (₹1,474) versus Dividend Discount (₹34.15). Highest evidence: Owner Earnings (73).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 54 · Market factors (momentum, volatility) 74
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.
of which total revenue +22.2 % · buybacks/dilution −1.2 %
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 →
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.
Valuation Multiples vs Credit Services median · lower = cheaper
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.
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.
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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