Mehabe score: 5 G Factor: 4 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 5.
Description
Cholamandalam Financial Holdings is undertakes financial services business through its Subsidiaries – Cholamandalam MS General Insurance Company Limited for general insurance business and Cholamandalam Investment and Finance Company Limited for lending operations. Risk advisory services is carried out through a joint venture entity Cholamandalam MS Risk Services Limited.(Source : 202003 Annual Report Page No:71)Site:CHOLAHLDNGMain Symbol:CHOLAHLDNG
Stock trades at 642.0, above its 50dma 637.66. It also trades above its 200dma 561.15. The stock remains bullish on techicals
The 52 week high is at 713.00 and the 52week low is at 315.30
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– has low interest coverage ratio.
-Dividend payout has been low at 2.28% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 24.9x. SBI Cards trades at the industry’s max P/E of 94.34x. CHOLAHLDNG trades at a P/E of 14.6x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 6.0. CHOLAHLDNG has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is -0.7%. The max 1- month return was given by Bajaj Holdings: a return of 11.43 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 3523.0 cr compared to Rs 3287.0 cr for period ended Mar 2020, a rise of 7.2%
Operating Profits reported at Rs 1479.0 cr for period ended Mar 2021 vis-vis 1288.0 for period ended Mar 2020 .
Operating Margins expanded 279.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 4.47 compared to Rs 11.34 for previous quarter ended Dec 2020 and Rs 2.13 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 13900.0 cr for period ended Mar 2021 vis-vis sales of Rs 13135.0 cr for the period ended Mar 2020, a growth of 5.5%. The 3 year sales cagr stood at 16.0%.
Operating margins expanded to 51.0% for period ended Mar 2021 vis-vis 50.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 825.0 cr for period ended Mar 2021 vis-vis sales of Rs 551.0 cr for the period ended Mar 2020, rising 33.2%.
Company recorded a healthy Net Profit CAGR of 14.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 17.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 100% on a 1 Year basis vis-vis a return of -0% over the last 3 Years. – The compounded sales growth on a TTM bassis is 6% vis-vis a compounded sales growth of 16% over the last 3 Years. – The compounded profit growth on a TTM basis is 50% vis-vis a compounded profit growth of 14% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 10.78% vis-vis 9.76% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 13.42% vis-vis 13.68% for Dec 2020
Conclusion
– – has low interest coverage ratio.
-Dividend payout has been low at 2.28% of profits over last 3 years
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 637.66 and is trading at 642.0, thus bullish price action wise.
