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Cholamandalam Financial Holdings (BSE:504973)

INE149A01033

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Cholamandalam Financial Holdings stock research in summary

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ANALYSIS: With an Obermatt Combined Rank of 89 (better than 89% compared with investment alternatives), Cholamandalam Financial Holdings (Consumer Finance, India) shares have much better financial characteristics than comparable stocks. Shares of Cholamandalam Financial Holdings are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives), show above-average growth (Growth Rank of 99) but are riskily financed (Safety Rank of 40), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 89, is a strong buy recommendation based on Cholamandalam Financial Holdings's financial characteristics. As the company Cholamandalam Financial Holdings's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 51) and above-average growth (Obermatt Growth Rank of 99), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 40) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	51
Growth Rank	99
Safety Rank	40
Combined Rank	89

Country	India
Industry	Consumer Finance
Index	Good Governace Growth Markets
Size class	Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Cholamandalam Financial Holdings

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	37	47	51
GROWTH
GROWTH	29	11	83	99
SAFETY
SAFETY	3	38	51	40
SENTIMENT
SENTIMENT	n/a	95	52	^new
360° VIEW
360° VIEW	n/a	47	88	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-Mar-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Cholamandalam Financial Holdings is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	37	47	51
GROWTH
GROWTH	29	11	83	99
SAFETY
SAFETY	3	38	51	40
COMBINED
COMBINED	10	4	79	89

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Cholamandalam Financial Holdings the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% compared with alternatives), Cholamandalam Financial Holdings shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Cholamandalam Financial Holdings. Price-to-Sales (P/S) is 77, which means that the stock price compared with what market professionals expect for future sales is lower than for 77% of comparable companies, indicating a good value concerning Cholamandalam Financial Holdings's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 64% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 17 (dividends are expected to be higher than for 17% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 72% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Cholamandalam Financial Holdings to 28. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, is a buy recommendation based on Cholamandalam Financial Holdings's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	90	65	79	77
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	52	48	46	64
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	40	20	36	28
DIVIDEND YIELD
DIVIDEND YIELD	26	21	21	17
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	52	37	47	51

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Cholamandalam Financial Holdings; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 99 (better than 99% compared with alternatives) for 2024, Cholamandalam Financial Holdings shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Cholamandalam Financial Holdings. Sales Growth has a value of 89, which means that, currently, professionals expect the company to grow more than 89% of its competitors. The same is valid for Profit Growth with a value of 87 and for Capital Growth with 74. In addition, Stock Returns had an above-average rank value of 85, which means they have been higher than 85% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 99, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Cholamandalam Financial Holdings exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	23	13	85	89
PROFIT GROWTH
PROFIT GROWTH	n/a	8	19	87
CAPITAL GROWTH
CAPITAL GROWTH	n/a	38	74	74
STOCK RETURNS
STOCK RETURNS	88	51	93	85
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	29	11	83	99

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Cholamandalam Financial Holdings.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 40 (better than 40% compared with alternatives), the company Cholamandalam Financial Holdings has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Cholamandalam Financial Holdings is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Cholamandalam Financial Holdings. Refinancing is at 81, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 81% of its competitors. Liquidity is also good at 52, meaning the company generates more profit to service its debt than 52% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 6, which means the company has an above-average debt-to-equity ratio. It has more debt than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 40 (worse than 60% compared with alternatives), Cholamandalam Financial Holdings has a financing structure that is riskier than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Cholamandalam Financial Holdings could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Cholamandalam Financial Holdings and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	10	6	6	6
REFINANCING
REFINANCING	42	89	89	81
LIQUIDITY
LIQUIDITY	19	45	54	52
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	3	38	51	40

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Cholamandalam Financial Holdings and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	98	89	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	61	43	^new
MARKET PULSE
MARKET PULSE	n/a	62	13	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	95	52	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Cholamandalam Financial Holdings.
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