A like-for-like valuation of Cholamandalam Investment and Finance Company (CHOLAFIN) and Shriram Finance (SHRIRAMFIN), each built from its own filed accounts and set side by side — price against estimated worth, on the same measures.
Cholamandalam Investment and Finance Company and Shriram Finance screen at similar value right now.
Cholamandalam Investment and Finance Company trades 36% above our estimate of fair value, and Shriram Finance 37% 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 “—”.
| Cholamandalam Investment and Finance CompanyCHOLAFIN | Shriram FinanceSHRIRAMFIN | |
|---|---|---|
| Current price | ₹1,792 | ₹980 |
| Market cap | ₹1.53L Cr | ₹2.31L Cr |
| Estimated fair value | ₹1,149 | ₹614 |
| Upside to fair value | -36% | -37% |
| P/E | 29.2 | 20.4 |
| P/B | 5.02 | 3.50 |
| 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 nearest peer on vehicle and small-business lending.
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.
Cholamandalam Investment and Finance Company trades 36% above our estimate of fair value, and Shriram Finance 37% 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.