CHOLAHLDNG - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Cholamandalam Financial Holdings Ltd (CHOLAHLDNG) Fundamental Rating: 4.1

🧾 Core Financial Snapshot

Profitability

EPS: ₹116 — impressive earnings strength.

PAT increased from ₹486 Cr to ₹614 Cr ➜ QoQ growth of 19.6%.

Returns

ROE: 19.1%, ROCE: 10.6% ➜ healthy shareholder returns.

Leverage

Debt-to-equity: 13.9 ➜ elevated, typical of NBFCs but warrants close monitoring.

Dividend Profile

Yield at 0.07% ➜ low payout; focus likely on growth reinvestment.

💸 Valuation Review

Metric Value Insights

P/E Ratio 16.5 Undervalued vs industry average of 26.1

P/B Ratio ~2.87 (1,912 ₹ / 666 ₹) ➜ reasonable premium

PEG Ratio 0.58 Attractive — growth well-priced

🔍 Verdict: Stock appears undervalued across key valuation markers, with PEG under 1 supporting long-term conviction.

🏢 Business Model & Strategic Edge

Holding company of Chola Investment & Finance Co., with exposure to

Vehicle finance

Home loans

SME lending

Strategic strength: Digitization, Tier-II/Tier-III outreach, diversified lending platform.

Institutional trends

FII ↑ 0.64% ➜ foreign optimism building.

DII ↓ 0.37% ➜ mild domestic outflow—possibly profit-taking.

📉 Technical Picture

RSI: 35.7 ➜ approaching oversold zone—possible near-term bounce.

MACD: -11.8 ➜ bearish momentum persists.

Price trading below 50 DMA and above 200 DMA ➜ medium-term strength, short-term caution.

✅ Suggested Entry Zone: ₹1,800–₹1,860 📉 Accumulation here could benefit from valuation rerating and business growth.

📅 Long-Term Holding Strategy

Hold if

You’re bullish on India’s NBFC expansion and credit demand.

You want exposure to a diversified lending ecosystem with strong earnings visibility.

You prefer growth with valuation discipline — PEG under 1 is a strong green flag.

📈 With solid fundamentals and attractive valuation, CHOLAHLDNG is well-positioned to compound over time, especially if macro tailwinds strengthen.

I can help you compare this with Bajaj Finserv, L&T Finance, or even break down its subsidiary metrics if you'd like to go deeper. Just say the word!

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