Cholamandalam Financial Holdings Limited (CFHL), a marquee name among India’s top 5 NBFCs by market capitalization and a key entity within the Murugappa Group, continues to demonstrate robust financial health and growth momentum. As a Core Investment Company registered with the RBI, CFHL offers a diversified portfolio of financial products and risk management solutions through its group companies, catering effectively to both individual and corporate clients.
Recent Performance Highlights:
Latest Quarterly and Annual Results:
Technical Outlook:
From a technical perspective, the stock is poised for a breakout, perfectly positioned at the golden ratio level on the Fibonacci retracement, forming a classic cup pattern-an ideal setup signaling strong upside potential. The financial sector, particularly NBFCs, is currently in favor, and Cholamandalam stands out as one of the hottest picks in this space.
Investment Strategy:
Given the strong fundamentals and technical setup, this is an opportune moment to consider a position in CFHL. Investors should calibrate their stop-loss levels according to individual risk tolerance to safeguard capital while participating in the anticipated upward momentum.
This synthesis combines strong fundamentals with favorable technical signals, making Cholamandalam Financial Holdings a compelling investment candidate in the current market environment.
Recent Performance Highlights:
- The company has delivered a commendable profit CAGR of 20.5% over the past five years, underscoring consistent earnings growth.
- Stock price performance has been exceptional, with a CAGR of 23% over 10 years, accelerating to 48% over 5 years, 45% over 3 years, and an impressive 83% in the last year alone.
- Compounded profit growth remains strong, with 19% over 10 years, 21% over 5 years, 29% over 3 years, and 24% trailing twelve months (TTM).
Latest Quarterly and Annual Results:
- Q4 FY25 disbursements rose 7% year-on-year to ₹26,417 crore, while annual disbursements crossed the ₹1 trillion mark at ₹1,00,869 crore, a 14% increase.
- Assets Under Management (AUM) surged 30% year-on-year to ₹1,99,876 crore.
- Net income for Q4 FY25 increased by 29% to ₹3,758 crore; Profit After Tax (PAT) grew 20% to ₹1,267 crore for the quarter and 24% to ₹4,259 crore for the full year.
- The company maintains strong capital adequacy with a CAR of 19.75%, well above regulatory norms, and a comfortable liquidity position.
- Asset quality remains robust with Gross NPA stable at 3.97% and NNPA at 2.63%, below RBI’s PCA threshold.
Technical Outlook:
From a technical perspective, the stock is poised for a breakout, perfectly positioned at the golden ratio level on the Fibonacci retracement, forming a classic cup pattern-an ideal setup signaling strong upside potential. The financial sector, particularly NBFCs, is currently in favor, and Cholamandalam stands out as one of the hottest picks in this space.
Investment Strategy:
Given the strong fundamentals and technical setup, this is an opportune moment to consider a position in CFHL. Investors should calibrate their stop-loss levels according to individual risk tolerance to safeguard capital while participating in the anticipated upward momentum.
This synthesis combines strong fundamentals with favorable technical signals, making Cholamandalam Financial Holdings a compelling investment candidate in the current market environment.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.