Cholamandalam Financial Holdings Ltd (CHOLAHLDNG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Capri Global

IIFL Finance

Poonawalla Fin

M & M Fin. Serv.

Manappuram Fin.

Five-Star Bus.Fi

Authum Invest.

SBFC Finance

Religare Enterp.

Tata Inv.Corpn.

Chola Financial

Why is Cholamandalam Financial Holdings Ltd ?

High Debt company with Weak Long Term Fundamental Strength

High Debt Company with a Debt to Equity ratio (avg) of 9.49 times
The company has been able to generate a Return on Capital Employed (avg) of 9.89% signifying low profitability per unit of total capital (equity and debt)

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -3.77% in the last 1 year, its fall in the stock was much higher with a return of -23.23%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Non Banking Financial Company (NBFC))

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Chola Financial for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chola Financial

-23.47%

-0.62

36.79%

Sensex

-9.95%

-0.72

13.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.46%

EBIT Growth (5y)

27.44%

EBIT to Interest (avg)

1.55

Debt to EBITDA (avg)

9.54

Net Debt to Equity (avg)

12.65

Sales to Capital Employed (avg)

0.18

Tax Ratio

26.01%

Dividend Payout Ratio

1.00%

Pledged Shares

0.02%

Institutional Holding

40.35%

ROCE (avg)

10.11%

ROE (avg)

13.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.83

EV to EBIT

9.97

EV to EBITDA

9.82

EV to Capital Employed

1.06

EV to Sales

5.47

PEG Ratio

0.50

Dividend Yield

0.09%

ROCE (Latest)

10.06%

ROE (Latest)

15.80%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

OPERATING CF(Y)

Highest at Rs -30,032.77 Cr

NET SALES(Q)

Highest at Rs 11,113.57 cr

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 14,975.78 cr

PBDIT(Q)

Highest at Rs 6,392.09 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 57.52%

PBT LESS OI(Q)

At Rs 2,299.38 cr has Grown at 34.7% (vs previous 4Q average

PAT(Q)

At Rs 805.96 cr has Grown at 32.1% (vs previous 4Q average

EPS(Q)

Highest at Rs 42.92

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Chola Financial

Operating Cash Flow - Annually

Highest at Rs -30,032.77 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 11,113.57 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 6,392.09 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 57.52%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2,299.38 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2,299.38 cr has Grown at 34.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1,707.53 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 805.96 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 805.96 cr has Grown at 32.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 610.32 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 42.92

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 14,975.78 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents