Cholamandalam Investment & Finance Company is one of the premier diversified non-banking finance companies in India, engaged in providing vehicle finance, home loans and Loan against property. The company is part of the Murugappa Group, a prominent Chennai-based conglomerate founded in 1900. With a $9.3 billion portfolio, the group spans three sectors with 29 businesses and nine listed companies.
Cholamandalam Investment and Finance Company Limited is an India-based equipment financing company. The Company offers vehicle finance, home loans, loans against property, small and medium enterprises (SME) loans, consumer and small enterprise loans, secured business and personal loans, insurance agency, mutual fund distribution and a variety of other financial services to customers.
The company has established itself as a comprehensive financial services provider with extensive reach across India. The company operates from 1,387 branches across India with Assets Under Management above Rs 1,53,718 crore. With over 1,438 branches across India, Chola manages assets exceeding INR 1,70,000 Crore.
Cholamandalam Investment & Finance Company demonstrated strong financial performance for FY25. Revenue: 25,846 Cr · Profit: 4,263 Cr based on the latest annual figures. The company has shown consistent growth across key metrics.
For the quarter ended March 31, 2025, the company delivered impressive results:
- Net profit rising 19.7% year-on-year (YoY) to ₹1,266.72 crore from ₹1,058.10 crore in Q4 FY24
- Revenue from operations stood at ₹7,025.05 crore, up 30% from ₹5,388.01 crore in the same quarter last year
- The company's total Assets Under Management (AUM) for Q4 FY25 reached ₹1,99,876 crore, reflecting a 30% YoY growth—surpassing its guidance of 25%
Full-year FY25 performance highlights:
- For the year ending March 31, 2025, the total disbursements breached the Rs 1 trillion mark to touch Rs 1,00,869 crore from Rs 88,7245 crore registering a growth of 14 per cent, year-on-year basis
- The Assets Under Management (AUM) as of March 31, 2025 stood at Rs 1,99,876 crore, as against Rs 1,53,718 crore registered in the year ago period, witnessing a 30 per cent growth
Mkt Cap: 1,28,423 Crore (up 6.64% in 1 year) as of recent data. The company's market capitalization has shown resilience with growth over the past year. Cholamandalam Investment and Finance Company Ltd has a market capitalisation of ₹ 1,36,839 Cr as on 23-May-2025.
The stock's valuation metrics include:
- Stock P/E 30.1 · Book Value ₹ 281 · Dividend Yield 0.13 % ROCE 10.3 % ROE 19.7 %
- The P/B ratio of Cholamandalam Investment and Finance Company Ltd is 5.78 times as on 23-May-2025, a 188% premium to its peers' median range of 2.01 times
Its segments include Vehicle Finance, Loan against property, Home Loans and Other loans. The company operates across multiple lending segments with differentiated offerings:
**Vehicle Finance**: The Vehicle Finance Loans segment provides loans to customers against the purchase of new/used vehicles, tractors, construction equipment and loans to automobile dealers.
**Loan Against Property**: Loan against property segment provides loans to customers against immovable property.
**Home Loans**: The Home Loans segment provides loans for the acquisition of residential property.
**Other Financial Services**: In addition, it offers portfolio management services, such as investment solutions to individual clients; stock broking services to retail and institutional investors; and distributes insurance products and mutual funds.
The company maintains strong capital adequacy ratios well above regulatory requirements. The Capital Adequacy Ratio (CAR) of the company as of March 31, 2025, was at 19.75 per cent as against the regulatory requirement of 15 per cent. Tier-I capital was at 14.41 per cent and Tier II capital was at 5.34 per cent. The Common Equity Tier-I Capital was at 13.68 per cent as against a regulatory minimum of 9 per cent
The promoters of Cholamandalam Investment and Finance Company Ltd are Cholamandalam Financial Holdings Limited (Formerly TIFinancial Holdings Ltd) and Ambadi Investments Limited (formerly Ambadi Investments Private Limited). They collectively own 48.35 per cent of the total equity. The chairman of the company is Vellayan Subbiah
Vellayan Subbiah is a recipient of 'EY Entrepreneur of the Year 2023' and was named as the 'EY World Entrepreneur of the Year 2024' for his excellent leadership and bold strategies in transforming businesses and seizing new opportunities through acquisitions and diversifications.
The company has maintained a consistent dividend policy, providing regular returns to shareholders. The Board of Directors, which met on April 25, has recommended a final dividend of Rs 0.70 per share (35 per cent) on the equity shares of the company, subject to the approval of the members. This is in addition to the interim dividend of Rs 1.30 per share (65 per cent) for the financial year 2024-25 declared by the company on January 31, 2025
The company is poised for robust growth, targeting a 20% to 25% increase in Assets Under Management, driven by strategic expansions in home loans and the introduction of a gold loan business. The company is also launching a gold loan business, indicating a focus on diversifying its offerings.
Jefferies has retained a buy rating on Cholamandalam Investment, setting a target price of ₹1,800. Despite short-term challenges, they foresee improving net interest margins and profitability metrics from FY25 to FY27.
The company's strategic focus remains on maintaining asset quality while expanding its market reach and product offerings across its core segments of vehicle finance, home loans, and SME lending.
