Cholamandalam Investment and Finance Company Limited (CHOLAFIN.BO) stock analysis

In our weekly check, Cholamandalam Investment and Finance Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 8.

About Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company Limited is a Financial Services company (Financial - Credit Services) based in India, listed on BSE as CHOLAFIN.BO.

What our checks show for CHOLAFIN.BO

Red flags

• The gross margin fell by 5.2 points, to 52.6%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 1.6% a year.
• The dividend takes 308% of profit: little cushion if profit falls.
• The stock has fallen as much as 94% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.1 years.
• Return on capital (ROCE) is only 3.8%.

Warning signs

• The net margin fell by 4.6 points over 5 years, to 16.6%: the company keeps less of each sale as profit.
• Thinly traded (about 185 thousand shares a day): buying and selling can move the price.

Strengths

• Operating cash flow is 2.89x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 23.7% a year over the next years.
• Analysts expect the net margin to improve by 16.5 points from today's 16.6%.
• Revenue grew 34.8% a year over the last 3 years.
• Earnings per share grew 24.1% a year over the last 3 years.
• Net profit grew 25.2% a year over the last 3 years.

Similar companies

PFC.NS · 8593.T · MUTHOOTFIN.NS · SHRIRAMFIN.NS · V · RECLTD.NS

Questions

What grade does Cholamandalam Investment and Finance Company Limited (CHOLAFIN.BO) have?

In our weekly check, Cholamandalam Investment and Finance Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CHOLAFIN.BO stock?

This week's biggest flags for Cholamandalam Investment and Finance Company Limited: Gross margin falling, Weak revenue forecast, Dividend stretched. In total 10 of 25 checks show a warning or a red flag.

What does Cholamandalam Investment and Finance Company Limited do?

Cholamandalam Investment and Finance Company Limited is a Financial Services company (Financial - Credit Services) based in India, listed on BSE as CHOLAFIN.BO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis