Cholamandalam Investment & Finance Company Ltd: Why Is It Outperforming Nifty 500?

Cholamandalam Investment & Finance Company Ltd's latest quarterly results (Mar 2026) show

• PAT Growth YoY: +30.6% (stable)
• Revenue Growth YoY: +19.5%
• Net Interest Margin: 25.00%

Cholamandalam Investment & Finance Company Ltd's profit is growing with an stable trend.

• PAT Growth YoY: +30.6% (latest quarter)
• PAT Growth QoQ: +27.5% (sequential)
• 3-Year PAT CAGR: +25.2%
• Trend: Stable — consistent growth pattern

Cholamandalam Investment & Finance Company Ltd's revenue growth trend is stable.

• Revenue Growth YoY: +19.5%
• Revenue Growth QoQ: +6.6% (sequential)
• 3-Year Revenue CAGR: +34.1%

Cholamandalam Investment & Finance Company Ltd's asset quality trend is insufficient_data.

Cholamandalam Investment & Finance Company Ltd's long-term compounding rates

• 3-Year Profit CAGR: +25.2%
• 3-Year Revenue CAGR: +34.1%

Cholamandalam Investment & Finance Company Ltd's earnings growth is stable with strong momentum on a sequential basis.

• YoY Acceleration: +12.0% bps
• Sequential Acceleration: +16.3% bps

Cholamandalam Investment & Finance Company Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹5,000 Cr
• TTM PAT Growth: +22.8% YoY
• TTM Revenue: ₹31,000 Cr
• TTM Revenue Growth: +20.2% YoY

Cholamandalam Investment & Finance Company Ltd appears overvalued based on our fair value analysis.

• Valuation Signal: Overvalued
• Current PE: 29.3x
• Price-to-Book: 5.0x

Cholamandalam Investment & Finance Company Ltd's current PE ratio is 29.3x.

• Current PE: 29.3x
• Market Cap: 1.5 Lakh Cr
• Dividend Yield: 0.11%

Cholamandalam Investment & Finance Company Ltd's current PE is 29.3x.

• Current PE: 29.3x
• Valuation Assessment: Overvalued

Cholamandalam Investment & Finance Company Ltd's price-to-book ratio is 5.0x.

• Price-to-Book (P/B): 5.0x
• Book Value per Share: ₹357
• Current Price: ₹1799

Cholamandalam Investment & Finance Company Ltd is rated Weak with a fundamental score of 33/100. This score is calculated from objective financial metrics

• PAT Growth YoY: +30.6% (20% weight)
• PAT Growth QoQ: +27.5% (15% weight)
• Earnings trend: stable (5% weight)

Cholamandalam Investment & Finance Company Ltd has a debt-to-equity ratio of N/A.

• Total Debt: ₹2.1 Lakh Cr

Cholamandalam Investment & Finance Company Ltd's return ratios over recent years

• FY2024: ROE 20.0%
• FY2025: ROE 20.0%
• FY2026: ROE 19.0%

Cholamandalam Investment & Finance Company Ltd's operating cash flow is negative (FY2026).

• Cash from Operations (CFO): ₹-30,000 Cr
• Free Cash Flow (FCF): ₹-33,000 Cr
• CFO/PAT Ratio: -574% (weak cash conversion)

Cholamandalam Investment & Finance Company Ltd's current dividend yield is 0.11%.

• Dividend Yield: 0.11%
• Current Price: ₹1799

Cholamandalam Investment & Finance Company Ltd's shareholding pattern (Mar 2026)

• Promoters: 49.3%
• FII (Foreign): 24.9%
• DII (Domestic): 19.9%
• Public: 6.0%

Cholamandalam Investment & Finance Company Ltd's promoter holding has decreased recently.

• Current Promoter Holding: 49.3% (Mar 2026)
• Previous Quarter: 49.7% (Dec 2025)
• Change: -0.47% (decreasing — worth monitoring)

Cholamandalam Investment & Finance Company Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.

Cholamandalam Investment & Finance Company Ltd is a new entry this week — it just started outperforming Nifty 500. New entries are worth monitoring for follow-through.

Based on quantitative research signals, here is why Cholamandalam Investment & Finance Company Ltd may be worth studying

• Earnings growing at +30.6% YoY
• Strong returns — ROE 19.0%

Cholamandalam Investment & Finance Company Ltd investment thesis summary:

Cholamandalam Investment & Finance Company Ltd's forward outlook based on current data signals

• Earnings Trend: stable
• Revenue Trend: stable
• Valuation: Overvalued