Cholamandalam Financial Holdings has a quick ratio of 10.48. It generally indicates good short-term financial strength.
The historical rank and industry rank for Cholamandalam Financial Holdings's Quick Ratio or its related term are showing as below:
BOM:504973'
s Quick 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 Quick Ratio was 10.48. The lowest was 0.83. And the median was 0.96.
BOM:504973's Quick Ratio is ranked better than 56.35% of 394
companies
in the Credit Services industry
Industry Median: 4.52
vs BOM:504973: 10.48
Cholamandalam Financial Holdings (BOM:504973) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Cholamandalam Financial Holdings Quick Ratio Related Terms
Cholamandalam Financial Holdings Quick 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 Quick Ratio Chart
For the Credit Services subindustry, Cholamandalam Financial Holdings's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Cholamandalam Financial Holdings's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Cholamandalam Financial Holdings's Quick Ratio falls into.
Cholamandalam Financial Holdings Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
* 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 Quick Ratio of 10.48 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Cholamandalam Financial Holdings and its competitors. This is 992% above median its historical median of 0.96. Over the past decade, Cholamandalam Financial Holdings' Quick Ratio has ranged from 0.83 to 10.48. According to the industry distribution chart, Cholamandalam Financial Holdings ranks #172 out of 394 companies in the Credit Services industry, placing it in the top 43.7%.
Is Cholamandalam Financial Holdings' Quick Ratio too high?
Cholamandalam Financial Holdings' current Quick 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 Quick Ratio is 4.52. Cholamandalam Financial Holdings' value of 10.48 is 131.9% above this industry median. Based on the distribution chart, Cholamandalam Financial Holdings ranks #172 out of 394 companies in the Credit Services industry, which is above the industry midpoint. Overall, Cholamandalam Financial Holdings has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cholamandalam Financial Holdings' Quick Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Cholamandalam Financial Holdings ranks #172 out of 394 companies for Quick Ratio. This puts Cholamandalam Financial Holdings in the upper half of its industry. The industry median Quick Ratio is 4.52. Cholamandalam Financial Holdings' value of 10.48 is 131.9% above this benchmark. Historically, Cholamandalam Financial Holdings' own Quick 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 4.52, 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 Quick Ratio for a Credit Services company?
The median Quick Ratio among Credit Services companies is 4.52, based on 394 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cholamandalam Financial Holdings's current Quick Ratio of 10.48 is 131.9% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Cholamandalam Financial Holdings and its competitors. For the Credit Services industry, the median Quick Ratio is 4.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cholamandalam Financial Holdings's current Quick 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 ₹2,087.11, compared to a current price of ₹1,661.90 — trading 20.4% below its estimated fair value. The current Quick Ratio is 10.48, which is 992% above median its 10-year median of 0.96 and 131.9% above the Credit Services industry median of 4.52. Cholamandalam Financial Holdings' overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Cholamandalam Financial Holdings (BOM:504973), the current Quick 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 ₹1,661.90 is trading 20.4% below its estimated GF Value™ of ₹2,087.11.
GuruFocus considers Cholamandalam Financial Holdings to be Modestly Undervalued.
Key valuation signals for BOM:504973:
Quick Ratio: 10.48 (992% above median its 10-year median of 0.96)
GF Value™: ₹2,087.11 vs. price of ₹1,661.90 (20.4% below fair value)
Industry Position: 131.9% above the Credit Services median (#172 of 394)
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.
75GF Score
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