Stock Performance and Market Context
On 2 January 2026, Cholamandalam Investment & Finance Company Ltd recorded an intraday high of Rs.1788.6, representing a 3.79% increase on the day and a 3.40% gain compared to the previous close. This new peak surpasses the stock’s previous 52-week low of Rs.1169.05, underscoring a remarkable recovery and growth trajectory over the past year.
The stock has demonstrated consistent strength, gaining for five consecutive trading sessions and delivering a cumulative return of 5.28% during this period. It has outperformed its sector by 2.93% on the day, signalling robust relative strength within the NBFC space. Cholamandalam Investment & Finance is currently trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, which is indicative of a sustained upward trend.
In comparison, the broader market benchmark, the Sensex, rose by 0.58% to close at 85,682.20 points, remaining 0.56% shy of its own 52-week high of 86,159.02. The BSE Mid Cap index also showed positive momentum, gaining 1.02%, highlighting a generally favourable market environment for mid and large-cap stocks.
Long-Term Performance and Financial Strength
Over the last twelve months, Cholamandalam Investment & Finance Company Ltd has delivered an impressive total return of 40.11%, significantly outperforming the Sensex’s 7.18% gain over the same period. This outperformance is supported by strong fundamentals, including an average Return on Equity (ROE) of 17.68%, which reflects efficient capital utilisation and profitability.
The company’s operating profit has grown at an annualised rate of 25.48%, signalling healthy business expansion and operational efficiency. Institutional investors hold a substantial 44.12% stake in the company, reflecting confidence from entities with extensive analytical resources and long-term investment horizons.
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Valuation and Market Positioning
Cholamandalam Investment & Finance Company Ltd currently holds a Mojo Score of 72.0 and has been upgraded from a Hold to a Buy grade as of 30 December 2025, reflecting improved market sentiment and fundamental strength. The company’s market capitalisation grade is 1, indicating its status as a large-cap entity within the NBFC sector.
The stock trades at a premium valuation with a Price to Book (P/B) ratio of 5.6, which is considered very expensive relative to its peers. This elevated valuation is supported by a Return on Equity of 17.9% and a Price/Earnings to Growth (PEG) ratio of 1.6, suggesting that the market is pricing in sustained growth prospects despite the premium.
Dividend payout ratio remains modest at 3.95%, which may reflect the company’s focus on reinvestment and growth rather than high dividend distribution.
Recent Financial Trends and Risk Considerations
While the company has shown strong profit growth of 20.6% over the past year, its recent quarterly results for September 2025 were largely flat, indicating a period of stabilisation. This has not detracted from the stock’s upward momentum but is a factor to monitor in the context of valuation and earnings sustainability.
Despite the premium valuation, Cholamandalam Investment & Finance Company Ltd’s consistent market-beating performance over one, three, and three-month periods within the BSE500 index highlights its resilience and leadership in the NBFC sector.
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Technical Momentum and Market Sentiment
The stock’s technical indicators remain robust, with prices comfortably above all major moving averages, signalling strong buying interest and positive momentum. The five-day moving average has been consistently rising, supporting the recent five-day consecutive gains.
Market conditions have also been supportive, with the Sensex trading above its 50-day and 200-day moving averages, reflecting a bullish broader market environment. Mid-cap stocks have led gains recently, with the BSE Mid Cap index up by 1.02%, further underpinning investor appetite for growth-oriented segments.
Cholamandalam Investment & Finance Company Ltd’s ability to outperform both its sector and the broader market indices over multiple time frames highlights its strong positioning and resilience amid evolving market dynamics.
Summary of Key Metrics
To summarise, Cholamandalam Investment & Finance Company Ltd’s key performance indicators as of 2 January 2026 include:
- New 52-week and all-time high price: Rs.1788.6
- One-year return: 40.11%
- Return on Equity (ROE): 17.68% average, 17.9% latest
- Operating profit growth rate: 25.48% annually
- Institutional holdings: 44.12%
- Price to Book ratio: 5.6
- PEG ratio: 1.6
- Dividend payout ratio: 3.95%
- Mojo Score: 72.0 with Buy grade (upgraded from Hold)
These figures collectively illustrate the company’s strong financial health, market leadership, and sustained investor confidence.
Conclusion
Cholamandalam Investment & Finance Company Ltd’s ascent to a new 52-week high of Rs.1788.6 marks a noteworthy milestone in its market journey. Supported by solid fundamentals, consistent profit growth, and favourable technical indicators, the stock has demonstrated resilience and outperformance within the NBFC sector and the broader market. While trading at a premium valuation, the company’s strong return metrics and institutional backing underpin its current market standing.
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