Cholamandalam Investment and Finance Company Limited Fundamental Analysis
Cholamandalam Investment and Finance Company Limited Fundamental Analysis
Cholamandalam Investment and Finance Company Limited (CHOLAFIN.BO) shows moderate financial fundamentals with a PE ratio of 27.54, profit margin of 16.59%, and ROE of 20.18%. The company generates $315.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -177.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CHOLAFIN.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakCHOLAFIN.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateCHOLAFIN.BO shows balanced valuation metrics.
Growth Score
ModerateCHOLAFIN.BO shows steady but slowing expansion.
Financial Health Score
ModerateCHOLAFIN.BO shows balanced financial health with some risks.
Profitability Score
ModerateCHOLAFIN.BO maintains healthy but balanced margins.
Key Financial Metrics
Is CHOLAFIN.BO Expensive or Cheap?
P/E Ratio
CHOLAFIN.BO trades at 27.54 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CHOLAFIN.BO's PEG of 1.25 indicates fair valuation.
Price to Book
The market values Cholamandalam Investment and Finance Company Limited at 4.73 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -6.38 times EBITDA. This is generally considered low.
How Well Does CHOLAFIN.BO Make Money?
Net Profit Margin
For every $100 in sales, Cholamandalam Investment and Finance Company Limited keeps $16.59 as profit after all expenses.
Operating Margin
Core operations generate 27.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.18 in profit for every $100 of shareholder equity.
ROA
Cholamandalam Investment and Finance Company Limited generates $2.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cholamandalam Investment and Finance Company Limited generates limited operating cash flow of $-103.35B, signaling weaker underlying cash strength.
Free Cash Flow
Cholamandalam Investment and Finance Company Limited generates weak or negative free cash flow of $-104.91B, restricting financial flexibility.
FCF Per Share
Each share generates $-123.07 in free cash annually.
FCF Yield
CHOLAFIN.BO converts -7.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
6.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How CHOLAFIN.BO Stacks Against Its Sector Peers
| Metric | CHOLAFIN.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.54 | 21.18 | Worse (Expensive) |
| ROE | 20.18% | 613.00% | Weak |
| Net Margin | 16.59% | -16891.00% (disorted) | Strong |
| Debt/Equity | 6.93 | 0.90 | Weak (High Leverage) |
| Current Ratio | 6.24 | 937.29 | Strong Liquidity |
| ROA | 2.13% | -847.00% (disorted) | Weak |
CHOLAFIN.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cholamandalam Investment and Finance Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical