This Murugappa Group’s Mid-Cap Company Outperforms Bajaj Finserv in Last Year; FIIs increased stake!

Shares of this company have gained 50 per cent compared to 10 per cent returns of Bajaj Finserv.

Cholamandalam Financial Holdings Ltd has outperformed big finance giant Bajaj Finserv Ltd in the last year. As shown in the chart below Murugappa Group’s Cholamandalam Financial Holdings Ltd has gained 50.46 per cent in a year while Bajaj Finserv has gained only 9.89 per cent in the same period.

In the relative performance of Cholamandalam Financial Holdings and Bajaj Finserv, the shares of Cholamandalam Financial Holdings have performed 0.98 times better as shown in the ratio chart below.

Comparison between Cholamandalam Financial Holdings Ltd. and Bajaj Finserv Ltd. across key financial metrics:

1. Revenue Growth (Quarterly YoY): Cholamandalam outperformed Bajaj Finserv by 6.2 per cent, achieving 35.7 per cent growth compared to Bajaj Finserv’s 29.5 per cent.
2. Revenue Growth (Quarterly QoQ): Cholamandalam led by 0.7 per cent with a 7.8 per cent growth rate, while Bajaj Finserv achieved 7.1 per cent.
3. Price to Earnings (TTM): Cholamandalam's PE ratio of 16.4 was lower than Bajaj Finserv’s 32.5, with a difference of -16.1, indicating a more favorable valuation for Cholamandalam.
4. Price to Book Value: Cholamandalam had a lower ratio of 1.4 compared to Bajaj Finserv’s 2.7, creating a difference of -1.3.
5. Price to Cash Flow from Operations: Cholamandalam had a better price-to-cash flow ratio of -0.9 versus Bajaj Finserv’s -4.0, with a difference of 3.1.
6. Price to Sales (Annual): Cholamandalam scored lower with a ratio of 0.8 compared to Bajaj Finserv’s 2.4, indicating a difference of -1.6.
7. Net Profit Growth (Quarterly YoY): Cholamandalam significantly outperformed with a 47.6 per cent growth, beating Bajaj Finserv’s 8.2 per cent by 39.4 per cent.
8. Net Profit Growth (Quarterly QoQ): Cholamandalam had a growth of 6.9 per cent, while Bajaj Finserv’s net profit fell by -2.4 per cent, resulting in a lead of 9.3 per cent for Cholamandalam.
9. Return on Equity (ROE Annual): Cholamandalam achieved a higher ROE of 17.3 per cent compared to Bajaj Finserv’s 13.5 per cent, creating a difference of 3.8 per cent.
10. Return on Capital Employed (ROCE Annual): Cholamandalam excelled with an ROCE of 50.3 per cent, outperforming Bajaj Finserv’s 13.9 per cent by 36.4 per cent.
11. dividend Yield (1 Year): Bajaj Finserv narrowly outperformed Cholamandalam with a 0.1 per cent dividend yield compared to Cholamandalam’s 0.0 per cent, a difference of 0.1 per cent.
12. Return on Equity (ROE Annual 3-Year Average): Over a three-year average, Cholamandalam had a higher ROE of 16.7 per cent, beating Bajaj Finserv’s 12.9 per cent by 3.8 per cent.

About Cholamandalam Financial Holdings Limited

Cholamandalam Financial Holdings Limited (CFHL) is a part of the Murugappa Group. The Co. is a Core Investment Company registered with the RBI, offering a diverse range of financial products and risk management services to individual and corporate customers through its group companies.

In the last four quarters, FIIs holdings increased significantly from 12.87 per cent in December 2023 to 16.28 per cent in September 2024, showing sustained foreign interest. This upward trend reflects strong institutional investment momentum

The stock has shown tremendous growth and investors should keep a close eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.