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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Cholamandalam Investment and Finance Co's 3-Year RORE % for the quarter that ended in Jun. 2026 was 15.13%.
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Cholamandalam Investment and Finance Co 3-Year RORE % Related Terms
Cholamandalam Investment and Finance Co 3-Year RORE % 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 3-Year RORE % Chart
Cholamandalam Investment and Finance Co Annual Data
NSE:CHOLAFIN vs V, MA, AXP: 3-Year RORE % Comparison
For the Credit Services subindustry, Cholamandalam Investment and Finance Co's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Cholamandalam Investment and Finance Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Cholamandalam Investment and Finance Co's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 3-year before.
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) has a 3-Year RORE % of 15.13 as of Jun. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Cholamandalam Investment and Finance Co and its competitors. According to the industry distribution chart, Cholamandalam Investment and Finance Co ranks #208 out of 518 companies in the Credit Services industry, placing it in the top 40.2%.
Is Cholamandalam Investment and Finance Co's 3-Year RORE % too high?
Cholamandalam Investment and Finance Co's current 3-Year RORE % is 15.13. The Credit Services industry median 3-Year RORE % is 8.30. Cholamandalam Investment and Finance Co's value of 15.13 is 82.3% above this industry median. Based on the distribution chart, Cholamandalam Investment and Finance Co ranks #208 out of 518 companies in the Credit Services industry, which is above the industry midpoint. Overall, Cholamandalam Investment and Finance Co has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cholamandalam Investment and Finance Co's 3-Year RORE % compare to V and MA?
According to the Credit Services industry distribution chart, Cholamandalam Investment and Finance Co ranks #208 out of 518 companies for 3-Year RORE %. This puts Cholamandalam Investment and Finance Co in the upper half of its industry. The industry median 3-Year RORE % is 8.30. Cholamandalam Investment and Finance Co's value of 15.13 is 82.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Credit Services company?
The median 3-Year RORE % among Credit Services companies is 8.30, based on 518 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cholamandalam Investment and Finance Co's current 3-Year RORE % of 15.13 is 82.3% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Cholamandalam Investment and Finance Co and its competitors. For the Credit Services industry, the median 3-Year RORE % is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cholamandalam Investment and Finance Co's current 3-Year RORE % is 15.13. 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 ₹2,148.19, compared to a current price of ₹1,849.90 — trading 13.9% below its estimated fair value. The current 3-Year RORE % is 15.13 and 82.3% above the Credit Services industry median of 8.30. Cholamandalam Investment and Finance Co's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Cholamandalam Investment and Finance Co (NSE:CHOLAFIN), the current 3-Year RORE % is 15.13 as of Jun. 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 ₹1,849.90 is trading 13.9% below its estimated GF Value™ of ₹2,148.19.
GuruFocus considers Cholamandalam Investment and Finance Co to be Modestly Undervalued.
Key valuation signals for NSE:CHOLAFIN:
3-Year RORE %: 15.13
GF Value™: ₹2,148.19 vs. price of ₹1,849.90 (13.9% below fair value)
Industry Position: 82.3% above the Credit Services median (#208 of 518)
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 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.
77GF Score
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