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Cholamandalam Financial Holdings has a current ratio of 10.48. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Cholamandalam Financial Holdings's Current Ratio or its related term are showing as below:
BOM:504973'
s Current Ratio Range Over the Past 10 Years
Min: 0.83 Med: 0.96 Max: 10.48
Current: 10.48
During the past 13 years, Cholamandalam Financial Holdings's highest Current Ratio was 10.48. The lowest was 0.83. And the median was 0.96.
BOM:504973's Current Ratio is ranked better than 56.42% of 397
companies
in the Credit Services industry
Industry Median: 4.71
vs BOM:504973: 10.48
Cholamandalam Financial Holdings (BOM:504973) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Cholamandalam Financial Holdings Current Ratio Related Terms
Cholamandalam Financial Holdings Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cholamandalam Financial Holdings Current Ratio Chart
BOM:504973 vs V, MA, AXP: Current Ratio Comparison
For the Credit Services subindustry, Cholamandalam Financial Holdings's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cholamandalam Financial Holdings Current Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Cholamandalam Financial Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Cholamandalam Financial Holdings's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cholamandalam Financial Holdings (BOM:504973) has a Current Ratio of 10.48 as of Mar. 2026. This is 992% above median its historical median of 0.96. Over the past decade, Cholamandalam Financial Holdings' Current Ratio has ranged from 0.83 to 10.48. According to the industry distribution chart, Cholamandalam Financial Holdings ranks #173 out of 397 companies in the Credit Services industry, placing it in the top 43.6%.
Is Cholamandalam Financial Holdings' Current Ratio too high?
Cholamandalam Financial Holdings' current Current Ratio of 10.48 is 992% above median its 10-year median of 0.96. Over the past 10 years, this metric has ranged from a low of 0.83 to a high of 10.48. The Credit Services industry median Current Ratio is 4.71. Cholamandalam Financial Holdings' value of 10.48 is 122.5% above this industry median. Based on the distribution chart, Cholamandalam Financial Holdings ranks #173 out of 397 companies in the Credit Services industry, which is above the industry midpoint. Overall, Cholamandalam Financial Holdings has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cholamandalam Financial Holdings' Current Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Cholamandalam Financial Holdings ranks #173 out of 397 companies for Current Ratio. This puts Cholamandalam Financial Holdings in the upper half of its industry. The industry median Current Ratio is 4.71. Cholamandalam Financial Holdings' value of 10.48 is 122.5% above this benchmark. Historically, Cholamandalam Financial Holdings' own Current Ratio has ranged from 0.83 to 10.48 over the past decade. While the company's 10-year median is 0.96 vs. the industry median of 4.71, Cholamandalam Financial Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Credit Services company?
The median Current Ratio among Credit Services companies is 4.71, based on 397 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cholamandalam Financial Holdings's current Current Ratio of 10.48 is 122.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Credit Services industry, the median Current Ratio is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cholamandalam Financial Holdings's current Current Ratio is 10.48, which is 992% above median its own 10-year median of 0.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cholamandalam Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Cholamandalam Financial Holdings (BOM:504973) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,097.95, compared to a current price of ₹1,575.35 — trading 24.9% below its estimated fair value. The current Current Ratio is 10.48, which is 992% above median its 10-year median of 0.96 and 122.5% above the Credit Services industry median of 4.71. Cholamandalam Financial Holdings' overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Cholamandalam Financial Holdings (BOM:504973), the current Current Ratio is 10.48 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cholamandalam Financial Holdings (BOM:504973) Overvalued in 2026?
Based on GuruFocus' analysis, Cholamandalam Financial Holdings stock appears to be undervalued.
The current stock price of ₹1,575.35 is trading 24.9% below its estimated GF Value™ of ₹2,097.95.
GuruFocus considers Cholamandalam Financial Holdings to be Modestly Undervalued.
Key valuation signals for BOM:504973:
Current Ratio: 10.48 (992% above median its 10-year median of 0.96)
GF Value™: ₹2,097.95 vs. price of ₹1,575.35 (24.9% below fair value)
Industry Position: 122.5% above the Credit Services median (#173 of 397)
No single metric tells the full story. See the BOM:504973 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cholamandalam Financial Holdings Business Description
Cholamandalam Financial Holdings Ltd along with its subsidiaries is a diversified investment company under the Murugappa Group. It offers financial services that include general insurance, residential mortgages, auto loans, risk services, and non-banking financial services. The company's activities are located exclusively in India. It has two primary product segments which include the Financial Services segment which derives key revenue and represents its lending business, and the Insurance and allied services segment.
74GF Score
Get the complete analysis for BOM:504973
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