Stock Performance and Market Context
On 6 January 2026, Cholamandalam Investment & Finance Company Ltd recorded an intraday high of Rs.1831.8, representing a 3.29% increase on the day. The stock closed with a day change of +2.72%, outperforming its sector by 2.05%. This rally places the stock well above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling strong technical momentum.
In comparison, the broader market benchmark, the Sensex, opened lower by 108.48 points and was trading at 85,257.45, down 0.21%. Despite this, the Sensex remains close to its own 52-week high of 86,159.02, just 1.06% away, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish market environment.
Long-Term Growth and Returns
Cholamandalam Investment & Finance Company Ltd has delivered a remarkable 41.31% return over the past year, significantly outpacing the Sensex’s 9.34% gain during the same period. The stock’s 52-week low was Rs.1169.05, underscoring the substantial appreciation investors have witnessed over the last twelve months.
The company’s strong fundamentals underpin this performance. It boasts an average Return on Equity (ROE) of 17.68%, reflecting efficient capital utilisation and profitability. Operating profit has grown at an annual rate of 25.48%, highlighting healthy long-term growth trends. Institutional investors hold a substantial 44.12% stake in the company, indicating confidence from well-resourced market participants with deep fundamental analysis capabilities.
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Valuation and Profitability Metrics
Despite the strong price appreciation, Cholamandalam Investment & Finance Company Ltd trades at a premium valuation. The Price to Book Value stands at 5.8, which is considered very expensive relative to its peers’ historical averages. The company’s Return on Equity for the latest period is 17.9%, consistent with its long-term average, while the Price/Earnings to Growth (PEG) ratio is 1.6, reflecting the relationship between its valuation and earnings growth.
Profit growth over the past year has been 20.6%, somewhat trailing the stock’s price appreciation, which suggests that the market is pricing in sustained growth and quality fundamentals. The company’s Dividend Payout Ratio (DPR) is relatively low at 3.95%, indicating a focus on reinvestment and growth rather than high dividend distribution.
Comparative Performance and Sector Positioning
Cholamandalam Investment & Finance Company Ltd has consistently outperformed the BSE500 index over the last three years, one year, and three months, demonstrating its resilience and market leadership within the NBFC sector. The company’s market capitalisation grade is rated as 1, reflecting its status as a large-cap entity with significant market presence.
The stock’s Mojo Score of 72.0 and upgraded Mojo Grade from Hold to Buy as of 30 December 2025 further highlight its improved standing based on comprehensive financial and technical analysis. This upgrade reflects the company’s enhanced growth prospects and solid financial health as assessed by MarketsMOJO’s proprietary evaluation framework.
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Technical Momentum and Market Sentiment
The stock’s trading above all major moving averages signals sustained buying interest and technical strength. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all support the current price level, indicating a well-established upward trend. This technical positioning has contributed to the stock’s ability to reach new highs despite a broadly cautious market environment.
While the Sensex has experienced minor declines on the day, Cholamandalam Investment & Finance Company Ltd’s outperformance highlights its relative strength within the NBFC sector and the broader market. The company’s ability to maintain momentum amid mixed market conditions underscores its resilience and underlying quality.
Summary of Key Metrics
To summarise, Cholamandalam Investment & Finance Company Ltd’s key performance indicators as of early January 2026 include:
- New 52-week and all-time high price: Rs.1831.8
- One-year return: 41.31%
- Return on Equity (average): 17.68%
- Operating profit growth (annualised): 25.48%
- Institutional holdings: 44.12%
- Price to Book Value: 5.8
- PEG ratio: 1.6
- Dividend Payout Ratio: 3.95%
- Mojo Score: 72.0 (Upgraded from Hold to Buy on 30 Dec 2025)
These figures collectively illustrate the company’s strong financial health, growth trajectory, and market positioning that have driven the recent price milestone.
Conclusion
Cholamandalam Investment & Finance Company Ltd’s ascent to a new 52-week high of Rs.1831.8 marks a notable achievement in its market journey. Supported by solid fundamentals, robust profit growth, and technical momentum, the stock has demonstrated significant resilience and outperformance relative to its sector and the broader market. While trading at a premium valuation, the company’s consistent returns and institutional backing reflect its standing as a leading NBFC player in India’s financial landscape.
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