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Cholamandalam Investment and Finance Co. Ltd. (IN:CHOLAFIN)
:CHOLAFIN
India Market
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Cholamandalam Investment and Finance Co. Ltd. (CHOLAFIN) AI Stock Analysis

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IN:CHOLAFIN

Cholamandalam Investment and Finance Co. Ltd.

(CHOLAFIN)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
₹2,009.00
▲(12.83% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid fundamental growth and profitability, tempered by elevated balance-sheet leverage and historically inconsistent cash flows. Technicals are supportive with price above key moving averages and positive momentum, while valuation appears somewhat expensive with a low dividend yield.
Positive Factors
Revenue & Profitability Growth
Cholamandalam has delivered multi-year revenue growth with a step-up in 2026 and consistent mid‑teens net margins. Durable top‑line expansion and steady margins support predictable earnings generation and reinvestment capacity, underpinning medium‑term loan growth and operational scalability.
Negative Factors
High leverage
Debt roughly six to seven times equity makes the balance sheet sensitive to funding shocks and interest‑rate moves. For an NBFC that relies on external wholesale funding, elevated leverage reduces financial flexibility, magnifies provisioning impacts in downturns, and raises refinancing risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profitability Growth
Cholamandalam has delivered multi-year revenue growth with a step-up in 2026 and consistent mid‑teens net margins. Durable top‑line expansion and steady margins support predictable earnings generation and reinvestment capacity, underpinning medium‑term loan growth and operational scalability.
Read all positive factors

Cholamandalam Investment and Finance Co. Ltd. (CHOLAFIN) vs. iShares MSCI India ETF (INDA)

Cholamandalam Investment and Finance Co. Ltd. Business Overview & Revenue Model

Company Description
Cholamandalam Investment and Finance Company Limited (CHOLAFIN.NS) operates as a prominent non-banking financial institution within India, delivering a comprehensive suite of financial services. Its core operations are structured around vehicle fi...
How the Company Makes Money
CHOLAFIN makes money primarily through lending-related income and fees. The company raises funds (e.g., via bank borrowings, market instruments such as bonds/debentures, and other financing sources typical for NBFCs) and deploys this capital into ...

Cholamandalam Investment and Finance Co. Ltd. Financial Statement Overview

Summary
Strong multi-year revenue growth and consistently healthy profitability support the score, but it is meaningfully offset by high and persistent leverage (debt roughly 6–7x equity) and historically volatile cash generation with several years of negative operating/free cash flow prior to a sharp improvement in 2026.
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
42
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue331.42B315.39B258.87B191.52B128.79B101.43B
Gross Profit178.54B165.87B134.11B99.39B71.45B58.64B
EBITDA88.56B72.61B59.86B48.03B37.36B30.08B
Net Income57.51B52.33B42.63B34.20B26.65B21.54B
Balance Sheet
Total Assets0.002.45T2.02T1.57T1.14T824.79B
Cash, Cash Equivalents and Short-Term Investments0.00146.95B95.01B43.94B9.12B26.99B
Total Debt0.002.11T1.75T1.34T973.58B692.84B
Total Liabilities-304.58B2.15T1.78T1.37T992.81B707.10B
Stockholders Equity304.58B304.58B236.69B195.93B143.46B117.69B
Cash Flow
Free Cash Flow-104.75B148.35B-326.13B-367.59B-272.82B-56.67B
Operating Cash Flow-103.19B151.00B-324.13B-356.83B-271.05B-55.71B
Investing Cash Flow-13.41B-476.75B-29.48B-28.55B-21.48B16.40B
Financing Cash Flow121.01B356.10B397.95B384.71B274.66B51.50B

Cholamandalam Investment and Finance Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1780.55
Price Trends
50DMA
1835.62
Positive
100DMA
1718.18
Positive
200DMA
1680.98
Positive
Market Momentum
MACD
-1.40
Positive
RSI
50.67
Neutral
STOCH
58.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CHOLAFIN, the sentiment is Positive. The current price of 1780.55 is below the 20-day moving average (MA) of 1858.78, below the 50-day MA of 1835.62, and above the 200-day MA of 1680.98, indicating a neutral trend. The MACD of -1.40 indicates Positive momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 58.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CHOLAFIN.

Cholamandalam Investment and Finance Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₹2.44T18.151.05%10.38%9.95%
63
Neutral
₹1.58T27.210.11%19.87%28.06%
63
Neutral
₹780.10B24.320.89%12.56%19.25%
58
Neutral
₹395.55B46.820.84%73.47%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹498.80B15.192.48%13.60%30.32%
55
Neutral
₹522.45B23.390.85%13.67%15.62%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:CHOLAFIN
Cholamandalam Investment and Finance Co. Ltd.
1,845.00
334.67
22.16%
IN:LTF
L&T Finance Ltd
309.50
76.95
33.09%
IN:M&MFIN
Mahindra & Mahindra Financial Services Ltd.
355.95
91.01
34.35%
IN:POONAWALLA
Poonawalla Fincorp Limited
444.45
5.30
1.21%
IN:SHRIRAMFIN
Shriram Finance Limited
1,028.00
402.13
64.25%
IN:SUNDARMFIN
Sundaram Finance Limited
4,714.65
275.68
6.21%

Cholamandalam Investment and Finance Co. Ltd. Corporate Events

Cholamandalam Investment and Finance Shareholders Clear All Resolutions at 48th AGM
Jul 29, 2026
Cholamandalam Investment and Finance Company Limited has reported to the National Stock Exchange of India and BSE the voting results of its 48th Annual General Meeting, held via video conference on July 28, 2026. The company stated that, based on ...
Cholamandalam Files SEBI Compliance Certificate for Q1 FY2026
Jul 15, 2026
Cholamandalam Investment and Finance Company Limited has submitted a regulatory certificate for the quarter ended 30 June 2026, confirming compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing, ...
Cholamandalam Allots 71,465 Equity Shares Under ESOP Scheme
Jul 8, 2026
Cholamandalam Investment and Finance Company Limited has approved the allotment of 71,465 new equity shares following the exercise of employee stock options by eligible staff. The shares, each with a face value of Rs. 2, are being issued under the...
Cholamandalam Converts CCDs Into Equity, Expands Share Capital
Jul 8, 2026
Cholamandalam Investment and Finance Company Limited has approved the conversion of 20,000 compulsorily convertible debentures, each with a face value of Rs. 1,00,000, into 13,54,940 equity shares of Rs. 2 each at a conversion price of Rs. 1,476.0...
Cholamandalam Sends FY26 Annual Report, Sets Stage for 48th AGM
Jul 7, 2026
Cholamandalam Investment and Finance Company Limited operates in India’s non-bank financial services sector, offering investment and finance solutions to retail and institutional customers. The company is listed on both the National Stock Ex...
Cholamandalam Investment Allots 98,124 Shares Under ESOP
Jun 17, 2026
Cholamandalam Investment and Finance Company Limited has allotted 98,124 equity shares of Rs.2 each to eligible employees following the exercise of options under its employee stock option scheme. The allotment, approved by the Nomination and Remun...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026