CHOLAHLDNG - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.2

📈 Positive

• 📉 Zero debt (Debt-to-equity: 0.00) ensures financial stability and low risk exposure.
• 📈 DII holding increased by 1.09%, indicating growing domestic institutional confidence.
• 📊 Quarterly PAT growth of 51.8% shows signs of operational recovery.
• 📈 MACD at 15.2 and RSI at 52.8 reflect neutral-to-positive technical momentum.
• 📉 Trading above DMA50 and DMA200 (₹1,891 and ₹1,814), suggesting bullish trend continuation.

⚠️ Limitation

• 📉 Extremely high P/E of 550 vs industry average of 31.6 indicates severe overvaluation.
• 📉 PEG ratio of 108 implies unsustainable valuation relative to growth.
• 📉 Low ROCE (6.26%) and ROE (4.88%) reflect poor capital efficiency.
• 📉 EPS of ₹3.47 is weak for a stock priced at ₹1,909.
• 📉 Dividend yield of 0.07% offers negligible passive income.

📰 Company Negative News

• 📉 FII holding declined by 0.93%, showing reduced foreign investor interest.
• 📉 PAT dropped sharply from ₹37.6 Cr. to ₹2.11 Cr., raising concerns about earnings volatility.

🌟 Company Positive News

• 📈 Technical indicators strong with price above key moving averages and MACD in positive territory.
• 📈 Volume near 1-week average suggests stable investor interest.

🏢 Industry

• 🏦 CHOLAHLDNG operates as a holding company with exposure to financial services, including asset finance and insurance.
• 📊 Industry P/E of 31.6 reflects moderate valuation norms for diversified financials.

🧭 Conclusion

• 📌 Suggested entry zone: ₹1,750–₹1,850, closer to DMA200 for better risk-reward ratio.
• 🕰️ Long-term holding not recommended at current valuation; wait for earnings clarity and price correction.
• ⚖️ Monitor earnings consistency and ROE/ROCE trends before considering accumulation.