Cholamandalam Investment and Finance Company Limited (CHOLAFIN.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-64.0%

₹592.61

vs ₹1,646.70 price

Levered DCF

-₹14,165.43

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.64

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	21.86×	28.95×	28.79×	23.48×	27.38×	30.12×	11.42×	19.7×
P/B	3.75×	5.21×	5.03×	4.36×	5.01×	4.77×	1.47×	3.8×
P/S	3.63×	4.77×	5.14×	4.86×	5.81×	4.78×	1.38×	3.33×
EV / EBITDA	42.8×	48.27×	47.58×	42.01×	41.35×	48.92×	35.59×	37.57×
Gross margin	52.6%	51.8%	51.9%	55.5%	57.8%	52.4%	47.4%	49.6%
Operating margin	33.3%	22.2%	24.0%	28.1%	28.7%	21.4%	18.2%	25.8%
Net margin	16.6%	16.5%	17.9%	20.7%	21.2%	15.9%	12.1%	16.9%
Current ratio	6.24×	32.38×	0.09×	6.96×	21.48×	15.95×	48.6×	15.04×
Debt / equity	6.93×	7.4×	6.86×	6.79×	5.89×	6.65×	6.72×	8.14×
Interest coverage	0.73×	0.46×	0.5×	0.63×	0.68×	0.45×	0.35×	0.51×
Dividend yield	0.1%	0.1%	0.2%	0.3%	0.3%	0.2%	1.7%	0.5%
Payout ratio	3.2%	3.9%	4.9%	6.2%	7.6%	7.0%	19.0%	10.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	17.2%	18.0%	17.5%	18.6%	18.3%	15.8%	12.9%	19.3%
Return on invested capital	3.2%	2.1%	2.1%	7.5%	7.7%	5.9%	28.4%	5.4%
Return on assets	2.1%	2.1%	2.2%	2.3%	2.6%	2.0%	1.6%	2.1%
Free cash flow yield	13.0%	-26.4%	-37.3%	-43.6%	-9.6%	-19.4%	-17.8%	-39.8%
Earnings yield	4.6%	3.5%	3.5%	4.3%	3.7%	3.3%	8.8%	5.1%
Enterprise value	₹3.1T	₹2.9T	₹2.3T	₹1.6T	₹1.2T	₹1.1T	₹604.9B	₹709.5B
Net debt / EBITDA	27.05×	27.65×	27.08×	25.26×	21.75×	27.62×	28.51×	25.07×
Cash conversion cycle (days)	-5	8	-1	205	339	16	534	377