NSE:CHOLAFIN's ROA % is ranked better than 57.06% of 545
companies
in the Credit Services industry
Industry Median: 1.92
vs NSE:CHOLAFIN: 2.36
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Cholamandalam Investment and Finance Co ROA % Related Terms
Cholamandalam Investment and Finance Co ROA % 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 Investment and Finance Co ROA % Chart
Cholamandalam Investment and Finance Co Annual Data
For the Credit Services subindustry, Cholamandalam Investment and Finance Co's ROA %, along with its competitors' market caps and ROA % 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 Investment and Finance Co ROA % vs Credit Services Industry
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) has a ROA % of 2.68% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Cholamandalam Investment and Finance Co and its competitors. This is 14% above median its historical median of 2.35. Over the past decade, Cholamandalam Investment and Finance Co's ROA % has ranged from 1.73 to 2.74. According to the industry distribution chart, Cholamandalam Investment and Finance Co ranks #234 out of 545 companies in the Credit Services industry, placing it in the top 42.9%.
Is Cholamandalam Investment and Finance Co's ROA % too high?
Cholamandalam Investment and Finance Co's current ROA % of 2.68% is 14% above median its 10-year median of 2.35. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 2.74. The Credit Services industry median ROA % is 1.92. Cholamandalam Investment and Finance Co's value of 2.68% is 39.6% above this industry median. Based on the distribution chart, Cholamandalam Investment and Finance Co ranks #234 out of 545 companies in the Credit Services industry, which is above the industry midpoint. Overall, Cholamandalam Investment and Finance Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cholamandalam Investment and Finance Co's ROA % compare to V and MA?
According to the Credit Services industry distribution chart, Cholamandalam Investment and Finance Co ranks #234 out of 545 companies for ROA %. This puts Cholamandalam Investment and Finance Co in the upper half of its industry. The industry median ROA % is 1.92. Cholamandalam Investment and Finance Co's value of 2.68% is 39.6% above this benchmark. Historically, Cholamandalam Investment and Finance Co's own ROA % has ranged from 1.73 to 2.74 over the past decade. While the company's 10-year median is 2.35 vs. the industry median of 1.92, Cholamandalam Investment and Finance Co 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 ROA % for a Credit Services company?
The median ROA % among Credit Services companies is 1.92, based on 545 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cholamandalam Investment and Finance Co's current ROA % of 2.68% is 39.6% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Cholamandalam Investment and Finance Co and its competitors. For the Credit Services industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cholamandalam Investment and Finance Co's current ROA % is 2.68%, which is 14% above median its own 10-year median of 2.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cholamandalam Investment and Finance Co stock overvalued right now?
Based on GuruFocus' analysis, Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,129.10, compared to a current price of ₹1,803.30 — trading 15.3% below its estimated fair value. The current ROA % is 2.68%, which is 14% above median its 10-year median of 2.35 and 39.6% above the Credit Services industry median of 1.92. Cholamandalam Investment and Finance Co's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Cholamandalam Investment and Finance Co (NSE:CHOLAFIN), the current ROA % is 2.68% 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 Investment and Finance Co (NSE:CHOLAFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Cholamandalam Investment and Finance Co stock appears to be undervalued.
The current stock price of ₹1,803.30 is trading 15.3% below its estimated GF Value™ of ₹2,129.10.
GuruFocus considers Cholamandalam Investment and Finance Co to be Modestly Undervalued.
Key valuation signals for NSE:CHOLAFIN:
ROA %: 2.68% (14% above median its 10-year median of 2.35)
GF Value™: ₹2,129.10 vs. price of ₹1,803.30 (15.3% below fair value)
Industry Position: 39.6% above the Credit Services median (#234 of 545)
No single metric tells the full story. See the NSE:CHOLAFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cholamandalam Investment and Finance Co Business Description
Cholamandalam Investment and Finance Co Ltd serves as the financial services arm of the Murugappa Group. Its subsidiaries include Cholamandalam Securities Limited (CSEC) and Cholamandalam Home Finance Limited (CHFL). The company's operating segments include; Vehicle finance loans its key revenue generating segment, which provides loans for the purchase of vehicles, tractors, and construction equipment; the Home Loans segment includes loans given for the acquisition of residential property; Loan against property includes loans to the customer against immovable property; and Other loans represents loans against shares and SME loans. The company operates solely in India.
76GF Score
Get the complete analysis for NSE:CHOLAFIN
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:CHOLAFIN has been successfully added to your 
