Cholamandalam Investment and Finance Company Limited (CHOLAFIN) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Cholamandalam Investment and Finance Company Limited stock ₹1,996, price ₹1,760, upside +13.4%, quality 57 out of 100. Rating: undervalued. Calculated from audited financials with 13 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range ₹470.77 – ₹1,940 · fair‑value band ₹594.81 – ₹3,955 · the ₹1,760 price screens below the ₹1,996 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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Cholamandalam Investment and Finance Company Limited, operates as a non-banking finance company in India. The company operates through Vehicle Finance, Loan Against Property, Home Loans, and Other Loans segments.
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It offers loans for commercial vehicles, passenger vehicles, two- and three- wheelers, and tractors, as well as construction equipment.
The company also provides secured loans against property, and home and SME loans, as well as consumer and small enterprise loans, including personal loans, professional loans, and business loans to salaried, self-employed professional and non-professional customers, and micro and small businesses.
In addition, it offers gold loans, consumer durable loans, corporate insurance agencies, stockbroking and depository participants, offline payment aggregator, home extension, balance transfer of existing loans, supply chain finance, and secured term loans.
Further, the company provides dealer portal services under the Gaadi Bazaar brand, which act as a hub for dealers in listing vehicles, generating leads, and applying for loans and trade advances.
Additionally, it operates Payswiff, an omnichannel payment transaction solution that lets business owners accept payments from their customers in-store, at-home deliveries, online and on-the-go using mPOS, and POS solutions. The company was incorporated in 1978 and is headquartered in Chennai, India.
Stock analysis
Cholamandalam Investment and Finance Company Limited (CHOLAFIN) currently trades at ₹1,760, while our model-based Fair Value estimate is ₹1,996, implying the stock looks roughly 12% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹1,996 per share, and 4 of the 13 models we run sit above the ₹1,760 price.
Bear case: the Asset-Based group reads lowest at ₹237.58, and 9 of the 13 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹594.81 (bear) to ₹3,955 (bull), the price of ₹1,760 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Cholamandalam Investment and Finance Company Limited reported revenue of ₹315B in FY2026 versus ₹101B in FY2022, a compound +32.8%/yr. Reported net income was ₹52.3B in FY2026, compounding +24.9%/yr from FY2022.
Key figures
Market cap ₹1.5T (≈ $15.8B) Large · P/E ratio 24.1 · P/S ratio 9.82 · EPS (TTM) ₹72.98 · Dividend yield 0.1% · Net margin 41.0% · Return on equity 20.6% · Return on assets (EBIT) 3.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 76 out of 100 (low confidence).
What moves the price
The share trades about 9% below its 52-week high and 30% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −1% fair-value upside, at 13%, CHOLAFIN screens cheaper than that median.
Fair Value models
Bear₹594.81Fair Value ₹1,996Bull₹3,955
Price ₹1,760 · Upside +13.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹42.78 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+21.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+34.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+26.9%
Start year 2021 (pandemic). Over 10 years: +22.3% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+26.4%
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What shareholders gained per year (last 5 years), in INR (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+25.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+25.0%
Dividend (yield on the price)0.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.27.3% vs 23.3%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.18% → 22%
2026 sits 51% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+8.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +4.2% a year for the price and +0.9% for the forecasts.
AI conclusion: Limited evidence for distinctive moat factors marks this credit services firm while its established vehicle and MSME lending provide the core growth avenues.
Main risk: Stricter RBI digital lending rules could force NBFCs like Chola to limit or fully internalise fintech partnerships, raising monitoring costs and slowing growth in consumer and small-ticket lending segments.
Bull case: By fully controlling its in-house digital platform and embedding AI for underwriting and compliance, Chola could meet RBI requirements more efficiently than rivals and expand its consumer book profitably.
Bear case: Persistent regulatory tightening on digital partnerships combined with aggressive competition from tech-enabled lenders could constrain origination volumes and compress margins in Chola's faster-growing non-vehicle segments.
Cholamandalam is set to consider a qualified institutions placement at its board meeting this week alongside the quarterly results. The capital could fuel continued growth across its vehicle and MSME lending segments but also introduces uncertainty over dilution effects. Our models currently see the company as undervalued, yet will the raise mainly bolster long-term capacity or weigh on near-term returns per share?
Compare Cholamandalam Investment and Finance Company Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Credit Services · 286 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score57 · Above median
Fair Value upside+13.4% · Below median
Profitability
Return on equity (12 months)20.6% · Top 25%
Return on assets2.1% · Below median
Net margin (12 months)41.0% · Above median
Operating margin (12 months)53.8% · Above median
Growth and dividend
Revenue growth (quarter YoY)32.0% · Above median
Dividend yield (12 months)0.1% · Bottom 25%
Balance sheet
Debt / equity3.87× · Highest 25%
Valuation Multiplesvs Credit Services median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Cholamandalam Investment and Finance Company Limited Fair Value". https://www.fairvalue-calculator.com/stock/CHOLAFIN
Frequently asked questions
Is Cholamandalam Investment and Finance Company Limited (CHOLAFIN) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of ₹1,996 versus a price of ₹1,760, about +13% upside (undervalued).
What is the fair value of CHOLAFIN?
Our model-based fair value for Cholamandalam Investment and Finance Company Limited is ₹1,996 (as of Nov 1, 2026), built from audited fundamentals. The current price: ₹1,760.
What is the quality score of CHOLAFIN?
Cholamandalam Investment and Finance Company Limited has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
Our model-based price target is the fair value of ₹1,996 (as of Nov 1, 2026) from 13 valuation models. Cautious scenario ₹594.81, optimistic scenario ₹3,955. It is a calculation from audited fundamentals, not an analyst target.
What is the Cholamandalam Investment and Finance Company Limited stock forecast for 2026?
Our models put fair value at ₹1,996, about +13% upside versus a price of ₹1,760 (undervalued). Cautious scenario ₹594.81, optimistic scenario ₹3,955. The calculation is refreshed regularly with new filings.
What is the revenue of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
Cholamandalam Investment and Finance Company Limited reported trailing-twelve-month revenue of about ₹152B (latest available figure, as of Nov 1, 2026).
Does Cholamandalam Investment and Finance Company Limited pay a dividend?
Cholamandalam Investment and Finance Company Limited currently shows a dividend yield of 0.11% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
For today's price to be fair in a discounted-cash-flow model, Cholamandalam Investment and Finance Company Limited would have to grow free cash flow by +8.6 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +26.9 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of CHOLAFIN use?
Our models discount Cholamandalam Investment and Finance Company Limited at 10.4 %: a base by market capitalisation (large), damped by beta 0.49, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Cholamandalam Investment and Finance Company Limited that is +8.6 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has Cholamandalam Investment and Finance Company Limited (CHOLAFIN) delivered so far?
Over the past 5 years revenue at Cholamandalam Investment and Finance Company Limited grew +26.9 % a year. The price currently implies +8.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Cholamandalam Investment and Finance Company Limited (CHOLAFIN) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Cholamandalam Investment and Finance Company Limited (+8.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
The free-cash-flow yield on the price is 9.96 %: that much free cash flow Cholamandalam Investment and Finance Company Limited produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cholamandalam Investment and Finance Company Limited it is ₹1,996 per share (as of Nov 1, 2026), against a price of ₹1,760. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Cholamandalam Investment and Finance Company Limited stock overvalued or undervalued in 2026?
As of Nov 1, 2026, CHOLAFIN trades below its calculated fair value: price ₹1,760, fair value ₹1,996, a gap of about +13% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CHOLAFIN?
No. The price is what the market pays today (₹1,760); the fair value is what the company's own numbers justify (₹1,996). For Cholamandalam Investment and Finance Company Limited the two are ₹235.66 per share apart. That gap is exactly why we show both numbers side by side.
How much is Cholamandalam Investment and Finance Company Limited worth?
The market values Cholamandalam Investment and Finance Company Limited at about ₹1.5T (market capitalisation, as of Nov 1, 2026). Per share that is ₹1,760; our models calculate a fair value of ₹1,996 per share.
What do the bullish and bearish scenarios say about CHOLAFIN?
Our models span a range for Cholamandalam Investment and Finance Company Limited: cautious scenario ₹594.81, base ₹1,996, optimistic ₹3,955 per share (as of Nov 1, 2026, price ₹1,760). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CHOLAFIN?
Cholamandalam Investment and Finance Company Limited trades at a price-to-earnings ratio of 24.1 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹1,996 is built from several models across several years. Median P/E at fiscal year-end, 7 fiscal years (2020 to 2026), reported earnings: 27.4. Other multiples: P/B 4.9, P/S 9.8, EV/EBITDA 34.7.
How solid is the balance sheet of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
Balance-sheet figures for Cholamandalam Investment and Finance Company Limited (as of Nov 1, 2026): return on equity 20.6%, debt of 3.87 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is CHOLAFIN from its 52-week high?
Cholamandalam Investment and Finance Company Limited trades at ₹1,760, about 9% below its 52-week high of ₹1,940 and 30% above the low of ₹1,351 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹1,996 is for.
Which stocks are comparable to Cholamandalam Investment and Finance Company Limited?
From the same area (Financial Services) we also value Visa Inc, Mastercard Incorporated, American Express Company, Capital One Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cholamandalam Investment and Finance Company Limited stock attractive at the current price?
The data as of Nov 1, 2026: price ₹1,760, calculated fair value ₹1,996 (+13%), Quality Score 57/100, from 13 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CHOLAFIN calculated?
We run Cholamandalam Investment and Finance Company Limited through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹1,996, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Cholamandalam Investment and Finance Company Limited currently trades 12% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
The closing price on Nov 5, 2026 was ₹1,760. Our model-based fair value is ₹1,996, about +13% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cholamandalam Investment and Finance Company Limited right now?
The model range is unusually wide (₹594.81 to ₹3,955). The outcome hinges heavily on assumptions, so read the point estimate with caution. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Cholamandalam Investment and Finance Company Limited (CHOLAFIN) come from?
Earnings per share at Cholamandalam Investment and Finance Company Limited grew +23.5 % a year from 2015 to 2026. Broken into its drivers: revenue per share +20.7 %, EBIT margin +2.9 %, tax rate +1.4 %, residual (interest, one-offs) −2.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Cholamandalam Investment and Finance Company Limited
How large is the market capitalisation of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
The market capitalisation of Cholamandalam Investment and Finance Company Limited is ₹1.5T (≈ $15.8B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
The price-to-sales ratio of Cholamandalam Investment and Finance Company Limited is 9.82 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
Earnings per share at Cholamandalam Investment and Finance Company Limited are ₹72.98 (price ÷ EPS = P/E 24.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
The dividend yield of Cholamandalam Investment and Finance Company Limited is 0.1% (payout 2.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
The net margin of Cholamandalam Investment and Finance Company Limited is 41.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
The return on equity (ROE) of Cholamandalam Investment and Finance Company Limited is 20.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
On an EBIT basis the return on assets of Cholamandalam Investment and Finance Company Limited is 3.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
The operating margin of Cholamandalam Investment and Finance Company Limited is 53.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
Revenue at Cholamandalam Investment and Finance Company Limited is growing +32.0% versus a year earlier (3y avg +34.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cholamandalam Investment and Finance Company Limited (CHOLAFIN)?
Earnings per share at Cholamandalam Investment and Finance Company Limited are growing +38.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Cholamandalam Investment and Finance Company Limited (CHOLAFIN) carry?
The net debt of Cholamandalam Investment and Finance Company Limited is ₹2.0T (fiscal year 2026, ≈ 13.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 1, 2026