Cholamandalam Investment & Finance Company Upgraded on Quality Grade Amid Strong Performance Metrics

Cholamandalam Investment & Finance Company, a prominent player in the Non-Banking Financial Company (NBFC) sector, has recently undergone an evaluation revision. This adjustment reflects the company's solid performance metrics, including a five-year sales growth of 25.86% and EBIT growth of 25.48%. The company's average net debt to equity stands at 5.55, indicating a manageable leverage position, while institutional holding is robust at 44.12%. Additionally, the average return on equity (ROE) is recorded at 14.45%, showcasing effective management of shareholder equity.
In comparison to its peers, Cholamandalam's performance remains competitive. Bajaj Finance leads with a strong quality assessment, while several other companies, including Bajaj Finserv and Shriram Finance, also maintain favorable standings. Notably, Cholamandalam has outperformed the Sensex across various time frames, with a year-to-date return of 43.41% compared to the Sensex's 6.50%. Over the past five years, Cholamandalam's stock has surged by 461.31%, significantly exceeding the Sensex's growth of 98.64%. This performance highlights the company's strong market position within the NBFC industry.