NSE:CHOLAFIN's ROE % is ranked better than 86.96% of 529
companies
in the Credit Services industry
Industry Median: 6.61
vs NSE:CHOLAFIN: 19.61
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Cholamandalam Investment and Finance Co ROE % Related Terms
Cholamandalam Investment and Finance Co ROE % 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 ROE % Chart
Cholamandalam Investment and Finance Co Annual Data
For the Credit Services subindustry, Cholamandalam Investment and Finance Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) has a ROE % of 21.61% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cholamandalam Investment and Finance Co and its competitors. This is 10% above median its historical median of 19.60. Over the past decade, Cholamandalam Investment and Finance Co's ROE % has ranged from 14.63 to 21.14. According to the industry distribution chart, Cholamandalam Investment and Finance Co ranks #69 out of 529 companies in the Credit Services industry, placing it in the top 13%.
Is Cholamandalam Investment and Finance Co's ROE % too high?
Cholamandalam Investment and Finance Co's current ROE % of 21.61% is 10% above median its 10-year median of 19.60. Over the past 10 years, this metric has ranged from a low of 14.63 to a high of 21.14. The Credit Services industry median ROE % is 6.61. Cholamandalam Investment and Finance Co's value of 21.61% is 226.9% above this industry median. Based on the distribution chart, Cholamandalam Investment and Finance Co ranks #69 out of 529 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Cholamandalam Investment and Finance Co ranks #69 out of 529 companies for ROE %. This places Cholamandalam Investment and Finance Co in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 6.61. Cholamandalam Investment and Finance Co's value of 21.61% is 226.9% above this benchmark. Historically, Cholamandalam Investment and Finance Co's own ROE % has ranged from 14.63 to 21.14 over the past decade. While the company's 10-year median is 19.60 vs. the industry median of 6.61, 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 ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cholamandalam Investment and Finance Co's current ROE % of 21.61% is 226.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cholamandalam Investment and Finance Co and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cholamandalam Investment and Finance Co's current ROE % is 21.61%, which is 10% above median its own 10-year median of 19.60. 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 ₹1,789.80 — trading 15.9% below its estimated fair value. The current ROE % is 21.61%, which is 10% above median its 10-year median of 19.60 and 226.9% above the Credit Services industry median of 6.61. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Cholamandalam Investment and Finance Co (NSE:CHOLAFIN), the current ROE % is 21.61% 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 ₹1,789.80 is trading 15.9% 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:
ROE %: 21.61% (10% above median its 10-year median of 19.60)
GF Value™: ₹2,129.10 vs. price of ₹1,789.80 (15.9% below fair value)
Industry Position: 226.9% above the Credit Services median (#69 of 529)
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
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