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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:
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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 83 (better than 83% 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 low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 82) and are safely financed (Safety Rank of 54, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 83, is a strong buy recommendation based on Cholamandalam Financial Holdings's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Cholamandalam Financial Holdings exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 82). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 54) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

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

This stock has achievements: Top 10 Stock.

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Research History: Cholamandalam Financial Holdings

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

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . 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	n/a
GROWTH
GROWTH	29	11	83	n/a
SAFETY
SAFETY	3	38	51	n/a
COMBINED
COMBINED	10	4	79	n/a

Last update of combined financial performance: . 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 45 (worse than 55% compared with alternatives), Cholamandalam Financial Holdings shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Cholamandalam Financial Holdings. Price-to-Sales (P/S) is 85, which means that the stock price compared with what market professionals expect for future sales is lower than 85% of comparable companies, indicating a good value concerning to Cholamandalam Financial Holdings's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 18, meaning that dividends are expected to be lower than for 82% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 83% of alternatives (only 17% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 57% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Cholamandalam Financial Holdings's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Cholamandalam Financial Holdings could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Cholamandalam Financial Holdings looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

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

Last update of Value Rank: . 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 82 (better than 82% compared with alternatives) for 2025, 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 but one indicator above average for Cholamandalam Financial Holdings. Sales Growth has a rank of 81 which means that currently, professionals expect the company to grow more than 81% of its competitors. Capital Growth is also above 17% of competitors with a rank of 73, and Stock Returns with the rank of 96 is also an outperformance. Only Profit Growth is low with a rank of 17 which means that currently, professionals expect the company to grow its profits less than 83% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 82, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Cholamandalam Financial Holdings is a good growth stock. 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	n/a
PROFIT GROWTH
PROFIT GROWTH	n/a	8	19	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	38	74	n/a
STOCK RETURNS
STOCK RETURNS	88	51	93	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	29	11	83	n/a

Last update of Growth Rank: . 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 54 (better than 54% compared with alternatives), the company Cholamandalam Financial Holdings has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Cholamandalam Financial Holdings is safe, it only means that the company is on the safer side regarding possible bankruptcy, 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 88, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 88% of its competitors. Liquidity is also good at 54, meaning the company generates more profit to service its debt than 54% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 7, which means the company has an above-average debt-to-equity ratio. It has more debt than 93% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 54 (better than 54% compared with alternatives), Cholamandalam Financial Holdings has a financing structure that is safer 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	n/a
REFINANCING
REFINANCING	42	89	89	n/a
LIQUIDITY
LIQUIDITY	19	45	54	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	3	38	51	n/a

Last update of Safety Rank: . 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: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Cholamandalam Financial Holdings.
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