How has been the historical performance of Cholaman.Inv.&Fn?

Revenue and Profit Growth

The company’s net sales have shown a remarkable upward trend, rising from ₹7,088 crores in March 2019 to ₹25,846 crores by March 2025. This represents a compounded growth trajectory, with particularly strong jumps in recent years. Correspondingly, total operating income mirrored this growth, reflecting the company’s expanding business scale.

Operating profit before depreciation, interest, and tax (PBDIT) excluding other income increased substantially from ₹5,455 crores in March 2019 to ₹18,174 crores in March 2025. Including other income, operating profit rose to ₹18,481 crores in the latest fiscal year. Despite rising interest expenses, which climbed from ₹3,588 crores in 2019 to ₹12,495 crores in 2025, the company maintained a healthy gross profit (PBDT) of nearly ₹5,986 crores in March 2025.

Profit before tax expanded from ₹1,832 crores in 2019 to ₹5,741 crores in 2025, while profit after tax (PAT) grew from ₹1,197 crores to ₹4,260 crores over the same period. The consolidated net profit followed a similar pattern, reaching ₹4,263 crores in March 2025. Earnings per share (EPS) also reflected this growth, increasing from ₹15.32 in 2019 to ₹50.67 in 2025, indicating enhanced shareholder value.

Cost Structure and Margins

Cholaman.Inv.&Fn’s expenditure profile reveals that employee costs and other expenses have risen in line with business expansion. Employee costs increased from ₹605 crores in 2019 to ₹3,328 crores in 2025, while other expenses grew from ₹1,027 crores to ₹4,344 crores. Despite these increases, the company has maintained strong operating profit margins, consistently above 69%, with a peak of 71.89% in 2023 and 70.32% in 2025.

Gross profit margins have seen some compression, moving from 26.65% in 2019 to 23.16% in 2025, reflecting the impact of rising costs. PAT margins have fluctuated but remained healthy, standing at 16.49% in the latest fiscal year.

Balance Sheet Strength and Asset Growth

The company’s total assets have nearly tripled from ₹63,531 crores in 2020 to ₹2,00,938 crores in 2025, driven by substantial increases in long-term loans and advances, which surged from ₹55,396 crores to ₹1,82,038 crores. Non-current investments also expanded significantly, indicating strategic asset accumulation.

Shareholders’ funds have grown robustly, from ₹8,200 crores in 2020 to ₹23,669 crores in 2025, supported by rising reserves. Book value per share has improved from ₹100.01 in 2020 to ₹281.33 in 2025, underscoring enhanced net asset value per share.

However, the company’s total liabilities have also increased, with total debt rising from ₹55,005 crores in 2020 to ₹1,75,036 crores in 2025. This leverage expansion warrants close monitoring, although no long-term borrowings were reported, suggesting reliance on short-term financing.

Cash Flow and Liquidity

Cash flow from operating activities has been negative in recent years, with ₹-32,413 crores in March 2025, reflecting significant working capital changes and investment needs. Investing activities also show consistent outflows, while financing activities have provided substantial inflows, peaking at ₹39,795 crores in 2025, indicating reliance on external funding to support growth.

Despite these outflows, the company’s closing cash and cash equivalents increased to ₹5,279 crores in March 2025 from ₹845 crores the previous year, suggesting improved liquidity buffers.

Overall, Cholaman.Inv.&Fn’s historical performance reveals a company in strong expansion mode, with impressive revenue and profit growth, solid asset base enhancement, and increasing shareholder value. The rising debt levels and negative operating cash flows highlight areas for cautious analysis, but the firm’s ability to generate consistent profits and maintain healthy margins supports a positive outlook.

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