Ye Chart Kuch Kehta Hai : Cholamandalam Financial HoldingCholamandalam 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:
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.
