Is Cholamandalam Investment and Finance the Best Stock in Its Sector? A Look at the Numbers
- October 12, 2026
- Posted by: Neeraj Pandey
- Category: Market
Cholamandalam Investment and Finance CMP Rs 1,585 (12 Oct 2026). Market cap Rs 1,35,366 Cr. ROE 17.18%. P/E 23.54x versus Industry P/E 17.58x.
Quick Answer
Cholamandalam Investment and Finance is one of the names investors compare when screening the Finance sector, built on a 17.18% return on equity and a P/E of 23.54x against an Industry P/E of 17.58x. Whether Cholamandalam Investment and Finance is the best stock in its sector depends on whether an investor is optimising for return ratios, valuation, or both. This article breaks down the metrics, including a comparison against named Finance sector peers, so you can judge that for yourself.
Is Cholamandalam Investment and Finance the best stock in its sector? The stock trades on the NSE at Rs 1,585 as of 12 October 2026, within its 52-week range of Rs 1,299.40 to Rs 1,952.50. Cholamandalam Investment and Finance Company Ltd, part of the Murugappa Group and based in Chennai, is a non-banking finance company offering vehicle finance, home loans, loans against property and other lending products.
Cholamandalam Investment and Finance sits in the Finance sector, and its 17.18% ROE and 23.54x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector’s Industry P/E benchmark.
Also read – Is Abbott India the Best Stock in Its Sector? A Look at the Numbers
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About Cholamandalam Investment and Finance
Cholamandalam Investment and Finance Company Ltd, part of the Murugappa Group and based in Chennai, is a non-banking finance company offering vehicle finance, home loans, loans against property and other lending products. Vehicle finance is a core part of its lending mix. The stock trades about 19 percent below its 52-week high and about 22 percent above its 52-week low. At a market capitalisation of Rs 1,35,366 Cr, it is tracked as part of the Finance sector on Univest.
Is Cholamandalam Investment and Finance the Best Stock in Its Sector?
Cholamandalam Investment and Finance makes its case as the best stock in its sector primarily on return on equity and balance sheet strength, combining a 17.18% ROE with a 23.54x P/E against the sector’s 17.58x Industry P/E. Cholamandalam’s 23.54x P/E is above the 17.58x Industry P/E, which the market pairs with a 17.18% ROE, while a debt to equity ratio of 6.93 reflects a business that funds its loan book largely through borrowings.
| Metric | Cholamandalam Investment and Finance |
|---|---|
| CMP (NSE) | Rs 1,585.10 |
| 52-Week High / Low | Rs 1,952.50 / Rs 1,299.40 |
| Market Cap | Rs 1,35,366 Cr |
| P/E (TTM) vs Industry P/E | 23.54x vs 17.58x |
| P/B | 4.42 |
| ROE | 17.18% |
| EPS (TTM) | Rs 67.31 |
| Dividend Yield | 0.13% |
| Debt to Equity | 6.93 |
Compare Cholamandalam Investment and Finance Against Other Finance Sector Stocks
How Cholamandalam Investment and Finance Compares Against Its Finance Sector Peers
The table below sets Cholamandalam Investment and Finance against 2 other Finance sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.
| Company | Market Cap (Rs Cr) | P/E | ROE | Debt to Equity |
|---|---|---|---|---|
| Cholamandalam Investment and Finance | 1,35,366 | 23.54 | 17.18% | 6.93 |
| Shriram Finance | 2,21,425 | 19.56 | 15.21% | 3.80 |
| Bajaj Finance | 5,96,540 | 28.89 | 16.68% | 3.82 |
| Peer average (2 companies) | – | 24.23 | 15.95% | 3.81 |
Against this peer set, Cholamandalam Investment and Finance’s 17.18% ROE is above the 15.95% peer average, and its P/E of 23.54x runs below the peer average of 24.23x. Cholamandalam’s 23.54x P/E is above the 17.58x Industry P/E, which the market pairs with a 17.18% ROE, while a debt to equity ratio of 6.93 reflects a business that funds its loan book largely through borrowings.
What Makes Cholamandalam Investment and Finance Worth Watching in Finance
- High returns: A 17.18% ROE is strong for a lender of its size.
- Premium valuation: A 23.54x P/E against a 17.58x Industry P/E leaves less cushion than a cheaper peer.
- Borrowing-funded model: A debt to equity ratio of 6.93 is a feature of lenders that fund loans through borrowings, which makes asset quality important to watch.
Cholamandalam Investment and Finance Valuation: Is It Justified?
Cholamandalam’s 23.54x P/E is above the 17.58x Industry P/E, which the market pairs with a 17.18% ROE, while a debt to equity ratio of 6.93 reflects a business that funds its loan book largely through borrowings. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.
Also read – Is Sun Pharma the Best Stock in Its Sector? A Look at the Numbers
Download the Univest iOS App or Univest Android App to track Cholamandalam Investment and Finance and other Finance sector stocks.
How to Track Cholamandalam Investment and Finance Before You Invest
Before deciding whether Cholamandalam Investment and Finance deserves its label as the best stock in its sector for your own portfolio, compare it directly against Finance sector peers using the steps below.
- Open the Univest Screener and search for Cholamandalam Investment and Finance to view live price, valuation ratios, and peer comparisons within the Finance sector.
- Compare its P/E, P/B, and ROE against other Finance sector stocks before deciding if the current valuation fits your strategy.
- Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
- Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.
Conclusion
Cholamandalam Investment and Finance earns a place in the best stock in its sector conversation on the strength of a 17.18% ROE and a P/E of 23.54x against a 17.58x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Is Cholamandalam Investment and Finance the best stock in its sector?
Ans. Cholamandalam Investment and Finance has a 17.18% ROE and trades at 23.54x P/E against a 17.58x Industry P/E, and compares above the peer average ROE of 15.95% in this article’s named comparison, so the answer depends on what an investor is prioritising.
What is the current share price of Cholamandalam Investment and Finance?
Ans. Cholamandalam Investment and Finance was trading at Rs 1,585.10 on the NSE as of 12 October 2026, within its 52-week range of Rs 1,299.40 to Rs 1,952.50.
What sector does Cholamandalam Investment and Finance belong to?
Ans. Cholamandalam Investment and Finance is classified under the Finance sector on Univest.
How does Cholamandalam Investment and Finance compare to its sector peers on P/E?
Ans. Cholamandalam Investment and Finance’s P/E of 23.54x is below the 24.23x average of the 2 named peers compared in this article.
What is Cholamandalam Investment and Finance’s return on equity?
Ans. Cholamandalam Investment and Finance reported a return on equity of 17.18%, which is above the 15.95% average of its named peers in this comparison.
Should I invest in Cholamandalam Investment and Finance based on its sector position?
Ans. Cholamandalam Investment and Finance’s sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.
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