A like-for-like valuation of BAJAJ FINANCE (BAJFINANCE) and Cholamandalam Investment and Finance Company (CHOLAFIN), each built from its own filed accounts and set side by side — price against estimated worth, on the same measures.
BAJAJ FINANCE and Cholamandalam Investment and Finance Company screen at similar value right now.
BAJAJ FINANCE trades 39% above our estimate of fair value, and Cholamandalam Investment and Finance Company 36% above our estimate of fair value. The two are close enough that neither stands out as the cheaper of the pair on price against estimated worth alone.
Every figure below is drawn from each company's own filed statements. Estimated fair value is the per-share figure our engine will stand behind; where a business needs a model that does not reduce to one number, it is shown as “—”.
| BAJAJ FINANCEBAJFINANCE | Cholamandalam Investment and Finance CompanyCHOLAFIN | |
|---|---|---|
| Current price | ₹1,009 | ₹1,792 |
| Market cap | ₹6.28L Cr | ₹1.53L Cr |
| Estimated fair value | ₹615 | ₹1,149 |
| Upside to fair value | -39% | -36% |
| P/E | 30.9 | 29.2 |
| P/B | 5.51 | 5.02 |
| Return on equity | —% | —% |
| Debt to equity | — | — |
| Valued on | Excess return — the correct lens for an NBFC | Excess return — the correct lens for an NBFC |
The closest listed NBFC comparison on mix and growth.
Worked backwards from today's share price: the rate each company must sustain to justify what it costs, against what its own ten-year record supports.
Same method, same filed accounts — each of these works both companies through to a fair value.
BAJAJ FINANCE trades 39% above our estimate of fair value, and Cholamandalam Investment and Finance Company 36% above our estimate of fair value. The two are close enough that neither stands out as the cheaper of the pair on price against estimated worth alone.
Each company is valued from its own filed financial statements — ten years of results — using the method that fits that business, then set beside the other on price, valuation multiples, return on equity and what today's share price already assumes. It is a like-for-like comparison of the workings, not investment advice.