📌At a glance:Cholamandalam Investment & Finance Company Ltd (CHOLAFIN) has tripled its revenue and nearly3x’d net profitover the last 5 years. Backed by the Murugappa Group and booming NBFC demand, it’s become one of India’s most aggressive financiers — with ₹1.75 lakh crore in borrowings and zero signs of brake-pumping. Let’s break down the 5-year growth blitz.
🏦 About the Company
- Name:Cholamandalam Investment and Finance Company Ltd (CHOLAFIN)
- Sector:NBFC – Vehicle finance, LAP (Loan Against Property), Home Loans
- Parentage:Murugappa Group (Founded 1900; $9.3 billion biz)
- Footprint:Pan-India with 1,200+ branches and expanding into digital lending
- Clients:Mostly Tier 2/3 retail borrowers and SMEs – classic Bharat lending
👨💼 Key Managerial Personnel (KMP)
| Name | Designation |
|---|---|
| Mr. Arun Alagappan | Managing Director |
| Mr. Arulselvan D | Chief Financial Officer (CFO) |
| Mr. S. Arunkumar | Chief Risk Officer |
🧠 Murugappa Group is known for tight capital discipline — and CHOLAFIN is its crown jewel in
terms of growth and margins.
📊 Financial Performance (FY21–FY25)
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | ROE (%) | Borrowings (₹ Cr) |
|---|---|---|---|---|---|
| FY21 | 9,583 | 1,521 | 18.55 | 17% | 63,730 |
| FY22 | 10,148 | 2,154 | 26.23 | 20% | 69,174 |
| FY23 | 12,884 | 2,665 | 32.42 | 20% | 97,358 |
| FY24 | 19,163 | 3,420 | 40.72 | 20% | 1,34,475 |
| FY25 | 25,846 | 4,263 | 50.69 | 20% | 1,75,036 |
📈 CAGR Stats:
- Revenue CAGR (5Y):24%
- Profit CAGR (5Y):32%
- EPS CAGR (5Y):28.5%
- Borrowing CAGR (5Y):24.5%
In short: They’re growing faster than your EMIs.
🧮 Forward-Looking Fair Value Estimate (EduInvesting FV Range)
- Industry PE Avg (NBFC):~22x
- Trailing EPS:₹50.7
- Assumed EPS Growth Next 2 Years:20% CAGR → FY27E EPS = ₹73
🎯EduInvesting FV Range (FY27E):₹1,400 – ₹1,650(conservative)₹1,800 – ₹2,100(aggressive with PE rerating)
👉 Current Price (₹1,645) isbaked-in for growth, but leaves limited margin of safety.
🔎 Business Mix: Where Does the Money Come From?
Cholamandalam
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