Cholamandalam Investment and Finance Company (CHOLAFIN) Fair Value & Analysis
Financial Services · IN · Market cap ₹1.5T
Fair value as of: Jul 12, 2026
From 25 valuation models · updated 26 days ago
Fair value updated Jul 12, 2026, revised from ₹797.99 to ₹796.52 (−0.2%) since Jun 26, 2026. Share price +4.9% over the past month.
A solid business, but screening 59% overvalued on our models.
What matters now
- The model range is unusually wide (₹564.64 to ₹3,186). The outcome hinges heavily on assumptions, so read the point estimate with caution.
- Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.
How to read this chart
60‑month range ₹470.77 – ₹1,940 · fair‑value band ₹564.64 – ₹3,186 · the ₹1,940 price screens above the ₹796.52 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.
Analysis
Cholamandalam Investment and Finance Company (CHOLAFIN) currently trades at ₹1,940, while our model-based Fair Value estimate is ₹796.52, implying the stock looks roughly 58.9% overvalued today. We read business quality at 62/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Cholamandalam Investment and Finance Company generated revenue of ₹132B at a net margin of 39.8%. Revenue grew 24.1% year over year. It earns a return on equity of 19.3%. Net debt stands at ₹2.0T. Fundamentals as of Jul 12, 2026
Our scenario range runs from ₹564.64 (bear case) to ₹3,186 (bull case); at ₹1,940, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 49% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -36% fair-value upside, at -59%, CHOLAFIN screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 25 models by family
Widest divergence: Growth Earnings (₹1,876) versus Dividend Discount (₹34.15). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 54 · Market factors (momentum, volatility) 73
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
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. It offers loans for commercial vehicles, passenger vehicles, two- and three- wheelers, and tractors, as well as construction equipment.
Full company description
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. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Cholamandalam Investment and Finance Company 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.
CHOLAFIN screens 59% overvalued. Compare with Visa Inc →
Peer Group
Credit Services · 333 stocks
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.
Valuation Multiples vs Credit Services median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 45/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Visa Inc V | $348.97 | $204.19 | -41% |
| Mastercard Incorporated MA | $537.70 | $221.87 | -59% |
| American Express Company AXP | $358.44 | $206.40 | -42% |
| Bajaj Finance Limited BAJFINANCE | ₹1,056 | ₹397.61 | -62% |
| Shriram Finance Limited SHRIRAMFIN | ₹1,024 | ₹553.83 | -46% |
| Tata Capital Limited TATACAP | ₹360.60 | ₹229.85 | -36% |
| Power Finance Corporation PFC | ₹405.10 | ₹810.20 | +100% |
| Muthoot Finance Limited MUTHOOTFIN | ₹3,129 | ₹3,463 | +11% |
| Indian Railway Finance Corporation IRFC | ₹88.41 | ₹69.72 | -21% |
| REC Limited RECLTD | ₹352.45 | ₹704.90 | +100% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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