A leading NBFC is aiming for a 20-25 percent growth in its Assets Under Management (AUM) for FY26. Additionally, the company is venturing into the gold segment, targeting a Gold AUM of Rs.1,000 crore to Rs.1,500 crore. This strategic move signals its intention to diversify and strengthen its portfolio in the evolving financial landscape.
Price Action
During Tuesday’s trading session, Cholamandalam Investment & Finance Company Ltd shares hit an intra-day high of Rs.1,534.90 per share, marking a 1.2 percent increase from the previous close of Rs.1,525.80 each. The share has since retreated and is currently trading at Rs.1,518.00 per share. Over the past five years, the shares have delivered over 850 percent returns.
What Happened
Cholamandalam Investment and Finance Company, a prominent non-banking financial company (NBFC) in India, has set an ambitious target of achieving 20-25% growth in its Assets Under Management (AUM) for the fiscal year 2026. This forecast reflects the company’s strong confidence in its business model and its strategic positioning within the Indian financial services industry.
The company has been steadily expanding its presence across both urban and rural markets in India. By leveraging its robust branch network and digital platforms, Cholamandalam is well-positioned to cater to underserved regions where demand for financial services, such as vehicle loans, home loans, and SME financing, continues to grow.
In addition to its traditional services, Cholamandalam is making strategic inroads into the gold AUM segment. With a target of Rs.1,000 crore to Rs.1,500 crore in gold AUM, the company aims to tap into the growing interest in gold-based investments.
Business Performance
The company has achieved a total Assets Under Management (AUM) of Rs. 1.99 lakh crore, supported by an extensive network of 1,613 branches. It serves a growing customer base of over 43.7 lakh, reflecting its strong presence across both urban and rural markets.
In terms of disbursements, the company reported an 11 percent year-on-year growth in Q4 FY25, reaching Rs. 14,430 crore, compared to Rs. 12,998 crore in Q4 FY24. Over the full fiscal year, disbursements grew by 12 percent, totaling Rs. 53,922 crore for FY25, up from Rs. 48,117 crore in FY24.
Earnings Report
In its latest financial update, Cholamandalam Investment & Finance Company Ltd reported a consolidated revenue of Rs.7,046 crores for Q4 FY25, marking a 31 percent increase from Rs.5,410 crores in Q4 FY24. Additionally, net profits also increased to Rs.1,260 crores, reflecting an 18 percent rise compared to Rs.1,065 crores during the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 9.17 percent and a Return on Equity (ROE) of 18.01 percent. Its Price-to-Earnings (P/E) ratio stands at 31.86, higher than the industry average of 28.77.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
