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Cholamandalam Financial Holdings Limited, an investment company, provides financial services in India. It operates through Financial Services, and Insurance and Allied Services segments. The company provides vehicle finance, loan against property, home, and small and medium-sized enterprise loans, as well as secured, business and personal, and consumer and small enterprise loans; and general insurance services. Cholamandalam Financial Holdings Limited was formerly known as TI Financial Holdings Limited. The company was incorporated in 1949 and is based in Chennai, India.
Summary of CHOLAMANDALAM FINANCIAL HOLDINGS's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
The management of Cholamandalam Financial Holdings Limited highlighted a positive outlook, emphasizing sustained growth, prudent risk management, and strategic initiatives. Key points include:
Growth & Market Share:
Regulatory & Accounting Impact:
Profitability & Investments:
Segment-Specific Strategies:
Regulatory Compliance:
Future Outlook:
The management remains committed to balancing growth with profitability, targeting sustained ROE improvement and market share gains.
Last updated: Feb 25
Question 1:
"In the current quarter, we are seeing little asset growth compared to what we delivered in the first half. So, is this growth largely driven because of you believing the competition has improved in the motor segment? And that's why you see the better opportunity to group a particular segment or to some extent, 1/n drove to go a little aggressive, a little on the motor so that overall growth doesn't get impacted. I just wanted to understand, was there any material change in the underlying market to drive the growth in the motor business?"
Answer Summary:
Growth was driven by festive season demand, new OEM car programs, and increased agency focus in motor. Strategic portfolio shifts toward higher car insurance (41.2% of motor) and reduced two-wheeler/CV contributions also contributed. The 1/n method influenced reporting but did not drive aggressive growth.
Question 2:
"What's on health loss ratios for the quarter? [...] Still, the loss ratio has deteriorated. Any color to understand and any corrective measures to be taken there?"
Answer Summary:
Higher health loss ratios (75.5) stemmed from expanding employer-employee group health business, which inherently has elevated loss ratios. Retail health product price hikes (effective October 2024) and revisions (January 2025) aim to improve ratios. Loss ratios are expected to stabilize around 72%, not reverting to historical lows due to segment mix.
Question 3:
"We were under the impression that the 1/n accounting should impact combined, but it should not have any impact on profits [...] So, what explains that difference, what led to that 7-8-9 crores of extra profit if we would have not followed 1/n accounting?"
Answer Summary:
The 1/n method marginally reduced PBT by ~Rs.7"“8 crore due to reinsurance (RI) commission adjustments and minor commission impacts. Profit recognition timing under 1/n altered RI expense allocation but had no material effect on overall profitability.
Question 4:
"Do you expect regulators to give a leeway on EoM compliance [...] And second thing is that if it doesn't come, then in these long-term plans, is it possible to defer the commissions so that industry becomes EoM compliant?"
Answer Summary:
The industry anticipates regulatory guidance to address EoM ratio challenges from 1/n. Commission deferral feasibility varies by channel due to intermediaries' financial needs. The company may cautiously manage high-cost products to ensure compliance while prioritizing economically profitable long-term business.
Analysis of CHOLAMANDALAM FINANCIAL HOLDINGS's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Financing | 78.3% | 6.7 kCr |
| Insurance | 21.7% | 1.9 kCr |
| Total | 8.6 kCr |
Valuation | |
|---|---|
| Market Cap | 35.55 kCr |
| Price/Earnings (Trailing) | 7.86 |
| Price/Sales (Trailing) | 1.12 |
| EV/EBITDA | 1.96 |
| Price/Free Cashflow | -0.79 |
| MarketCap/EBT | 5.83 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 31.61 kCr |
| Rev. Growth (Yr) | 25.59% |
| Rev. Growth (Qtr) | 5.05% |
| Earnings (TTM) | 4.52 kCr |
| Earnings Growth (Yr) | 6.42% |
| Earnings Growth (Qtr) | -2.87% |
Profitability | |
|---|---|
| Operating Margin | 19.28% |
| EBT Margin | 19.28% |
| Return on Equity | 18.49% |
| Return on Assets | 2.22% |
| Free Cashflow Yield | -126.33% |
Investor Care | |
|---|---|
| Dividend Yield | 0.04% |
| Dividend/Share (TTM) | 0.55 |
| Shares Dilution (1Y) | 0.00% |
| Diluted EPS (TTM) | 110.4 |
Financial Health | |
|---|---|
| Debt/Equity | 0.00 |
| Debt/Cashflow | 0.00 |
Technicals: Bullish SharesGuru indicator.
Growth: Awesome revenue growth! Revenue grew 30.6% over last year and 119.1% in last three years on TTM basis.
Profitability: Recent profitability of 14% is a good sign.
Size: Market Cap wise it is among the top 20% companies of india.
Smart Money: Smart money has been increasing their position in the stock.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
No major cons observed.
Comprehensive comparison against sector averages
CHOLAHLDNG metrics compared to Finance
| Category | CHOLAHLDNG | Finance |
|---|---|---|
| PE | 8.22 | 16.35 |
| PS | 1.18 | 1.60 |
| Growth | 30.6 % | 14 % |
CHOLAHLDNG vs Finance (2021 - 2025)
Understand CHOLAMANDALAM FINANCIAL HOLDINGS ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| AMBADI INVESTMENTS LIMITED | 37.69% |
| NIPPON LIFE INDIA TRUSTEE LTD- A/C NIPPON INDIA BA | 5.51% |
| SBI NIFTY 500 INDEX FUND | 3.44% |
| AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL F | 2.07% |
| HDFC MUTUAL FUND - HDFC S&P BSE 500 INDEX FUND | 1.74% |
| ADITYA BIRLA SUN LIFE TRUSTEE PRIVATE LIMITED A/C | 1.67% |
| CANARA ROBECO MUTUAL FUND A/C CANARA ROBECO SMALL | 1.25% |
| FIRST SENTIER INVESTORS ICVC - STEWART INVESTORS I | 1.2% |
| M A M ARUNACHALAM | 0.45% |
| LAKSHMI RAMASWAMY FAMILY TRUST(AA ALAGAMMAI & LAKSHMI RAMASWAMY HOLDS SHARES ON BEHALF OF TRUST) | 0.4% |
| MURUGAPPA EDUCATIONAL AND MEDICAL FOUNDATION | 0.39% |
| ARUN ALAGAPPAN | 0.39% |
| M.A.ALAGAPPAN | 0.38% |
| A VELLAYAN | 0.34% |
| LAKSHMI CHOCKA LINGAM | 0.33% |
| Shambho Trust (M V Subbiah & S Vellayan are trustees of the trust) | 0.32% |
| M A MURUGAPPAN HOLDINGS LLP | 0.29% |
| M A ALAGAPPAN HOLDINGS PRIVATE LIMITED | 0.28% |
| Meenakshi Murugappan Family Trust (M M Murugappan & Meenakshi Murugappan are trustees of the trust) | 0.27% |
| A VENKATACHALAM | 0.27% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of CHOLAMANDALAM FINANCIAL HOLDINGS against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| BAJFINANCE | Bajaj FinanceNon Banking Financial Company(NBFC) | 5.63 LCr | 66.19 kCr | +1.65% | +35.09% | 35.05 | 8.5 | +28.74% | +16.50% |
| SHRIRAMFIN | Shriram FinanceNon Banking Financial Company(NBFC) | 1.17 LCr | 40.33 kCr | -5.18% | -75.14% | 12.37 | 2.9 | +17.00% | +41.83% |
| SUNDARMFIN | SUNDARAM FINANCENon Banking Financial Company(NBFC) | 58.48 kCr | 8.42 kCr | +15.05% | +9.78% | 32.51 | 6.94 | +26.24% | -4.24% |
| M&MFIN | Mahindra & Mahindra Financial ServicesNon Banking Financial Company(NBFC) | 32.32 kCr | 17.97 kCr | -7.56% | +1.14% | 14.3 | 1.74 | +16.03% | +16.36% |