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Cholamandalam Financial Holdings (CHOLAHLDNG) Fair Value & Analysis

Financial Services · IN · Market cap ₹311B

CF Cholamandalam Financial Holdings CHOLAHLDNG · NSE
Price₹1,551
Fair Value₹1,112
Upside-28.3%
Quality56/100
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Mixed Growth
Solidly profitable · 11.6% net margin
High debt · generates free cash flow
0.08% dividend yield
Mixed vs. peers (6/14)
Moderate moat 64/100
Evidence: Medium Range ₹1,112 – ₹3,665 Share as image

Fair value as of: Aug 2, 2026

From 13 valuation models · updated 11 days ago

Fair value updated Aug 2, 2026, revised from ₹1,690 to ₹1,112 (−34.2%) since Jun 29, 2026. Share price −5.9% over the past month.

A solid business, but screening 28% overvalued on our models.

What matters now

  • The model range is unusually wide (₹1,112 to ₹3,665). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (56/100) 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.
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Price vs Fair Value (5 years)

₹2,168 ₹512.16 Fair Value ₹1,112 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹512.16 – ₹2,168 · fair‑value band ₹1,112 – ₹3,665 · the ₹1,551 price screens above the ₹1,112 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Cholamandalam Financial Holdings (CHOLAHLDNG) currently trades at ₹1,551, while our model-based Fair Value estimate is ₹1,112, implying the stock looks roughly 28.3% overvalued today. The Quality Score stands at 56/100 (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: medium).

Over the trailing twelve months, Cholamandalam Financial Holdings generated revenue of ₹211B at a net margin of 11.6%. Revenue grew 15.2% year over year. It earns a return on equity of 18.0%. Net debt stands at ₹2.0T. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹1,112 (bear case) to ₹3,665 (bull case); at ₹1,551, 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 about 30% below its 52-week high and 19% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -36% fair-value upside, at -28%, CHOLAHLDNG screens cheaper 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.

Model 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. Evidence
Highest evidence
Growth DCF ₹3,502 ₹16,504 ₹43,910 80
Residual Income ₹906.81 ₹1,261 ₹5,229 76
Rev-Margin DCF ₹425.90 ₹7,594 74
All 13 models by family
DCF Models
Owner Earnings ₹904.47 31
5Y P/E Exit ₹162.81 38
10Y P/E Exit ₹1,340 ₹7,750 35
Earnings-Based
Graham-Dodd ₹884.07 ₹6,165 ₹8,652 54
Lynch FV ₹2,082 ₹2,975 ₹3,867 50
Dividend Discount
Gordon GGM ₹61.13 ₹133.45 ₹224.54 70
DDM Multi-Stage ₹61.13 ₹109.32 ₹139.08 61
Multiples
P/E Multiple ₹1,268 ₹1,690 ₹2,113 63
P/B Multiple ₹864.15 ₹1,152 ₹1,440 55
Asset-Based
NCAV (Graham) ₹411.50 ₹551.41 ₹823.00 50
Growth DCF
Growth DCF ₹3,502 ₹16,504 ₹43,910 80
Rev-Margin DCF ₹425.90 ₹7,594 74
Economic Profit
Residual Income ₹906.81 ₹1,261 ₹5,229 76

Widest divergence: Earnings-Based (₹2,975) versus Dividend Discount (₹109.32). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹211B
Revenue growth (YoY) +15.2%
Net margin 11.6%
Return on equity 18.0%
Free cash flow ₹155B FY2026
P/E ratio 12.7
More key figures
Operating margin 37.2%
EPS (TTM) ₹129.96
Dividend yield 0.1%
EPS growth (YoY) +12.0%
Net debt ₹2.0T FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 53 · Market factors (momentum, volatility) 39

Profitability 26
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 19
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

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 Financial Holdings Limited, an investment company, provides financial services in India. It operates through Financial Services, and Insurance and Allied Services segments.

Full company description

Cholamandalam Financial Holdings Limited, an investment company, provides financial services in India. It operates through Financial Services, and Insurance and Allied Services segments. The company offers vehicle finance, loans against property, home loans, secured business and personal loans, consumer and small enterprises loans, and small and medium enterprise loans, as well as various other financial services to customers; and general insurance services, including health, home, motor, and travel insurance. It serves first time borrowers, new to credit customers, and individuals, as well as corporates, small, micro, medium enterprises. The company was formerly known as TI Financial Holdings Limited and changed its name to Cholamandalam Financial Holdings Limited in March 2019. Cholamandalam Financial Holdings Limited was incorporated in 1949 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Cholamandalam Financial Holdings reported revenue of ₹396B in FY2026 versus ₹156B in FY2022, a compound +26.1%/yr. Reported net income was ₹24.4B in FY2026, compounding +24.3%/yr from FY2022.

Growth Quality 92/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹396B
Latest YoY
+13.1%
Avg. growth/yr (3Y) 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.
+26.9%
Avg. growth/yr (5Y) 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.
+22.3%
Avg. growth/yr (21Y) 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.
+17.0%
Revenue +26.1%/yr
FY22 ₹156B
FY23 ₹194B
FY24 ₹273B
FY25 ₹350B
FY26 ₹396B
Net income +24.3%/yr
FY22 ₹10.2B
FY23 ₹12.9B
FY24 ₹17.7B
FY25 ₹21.7B
FY26 ₹24.4B
Character of growth · EPS growth decomposed (2015-2026) +11.9 % p.a.
Revenue per share +15.5 pp

of which total revenue +15.5 pp · buybacks/dilution +0.0 pp

EBIT margin −1.6 pp
Tax rate −1.9 pp
Residual (interest, one-offs) −0.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

CHOLAHLDNG screens 28% overvalued. Compare with Visa Inc →

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Cite: Fair Value Calculator (2026). "Cholamandalam Financial Holdings Fair Value". https://www.fairvalue-calculator.com/stock/CHOLAHLDNG

Peer Group

Credit Services · 334 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.

Quality Score 55 · Above median
Fair Value upside −28% · Below median
Return on equity (TTM) 18% · Top 25%
Return on assets 2% · Below median
Net margin (TTM) 12% · Below median
Operating margin (TTM) 37% · Above median
Revenue growth 15% · Above median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 13.61× · Higher than 75% of peers

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 12.7× · Pricier than median
P/B 2.01× · Pricier than 75% of peers
P/S (TTM) 1.47× · Cheaper than median
P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 29.3× · Pricier than 75% of peers

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 · sector 39
FUTURE 76 · sector 39
PAST 72 · sector 32
HEALTH 0 · sector 59
DIVIDEND 2 · sector 49

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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 Aug 2, 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

Is Cholamandalam Financial Holdings (CHOLAHLDNG) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹1,112 versus a price of ₹1,551, about −28% (overvalued).
What is the fair value of CHOLAHLDNG?
Our model-based fair value for Cholamandalam Financial Holdings is ₹1,112 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹1,551.
What is the quality score of CHOLAHLDNG?
Cholamandalam Financial Holdings has a Quality Score of 56/100. 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 revenue of Cholamandalam Financial Holdings (CHOLAHLDNG)?
Cholamandalam Financial Holdings reported trailing-twelve-month revenue of about ₹211B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of CHOLAHLDNG?
The net profit margin of Cholamandalam Financial Holdings is about 11.6%, meaning it keeps roughly 11.6% of revenue as net income. Based on the latest reported figures.
Does Cholamandalam Financial Holdings pay a dividend?
Cholamandalam Financial Holdings currently shows a dividend yield of about 0.08% relative to its recent price (as of Aug 2, 2026).

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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