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Cholamandalam Financial Holdings (BOM:504973) Profitability Rank : 8 (As of Mar. 2024)


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What is Cholamandalam Financial Holdings Profitability Rank?

Cholamandalam Financial Holdings has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Cholamandalam Financial Holdings's Operating Margin % for the quarter that ended in Mar. 2024 was 21.26%. As of today, Cholamandalam Financial Holdings's Piotroski F-Score is 4.


Competitive Comparison of Cholamandalam Financial Holdings's Profitability Rank

For the Credit Services subindustry, Cholamandalam Financial Holdings's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cholamandalam Financial Holdings's Profitability Rank Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Cholamandalam Financial Holdings's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Cholamandalam Financial Holdings's Profitability Rank falls into.



Cholamandalam Financial Holdings Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Cholamandalam Financial Holdings has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Cholamandalam Financial Holdings's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=14814.2 / 69666.6
=21.26 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Cholamandalam Financial Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Cholamandalam Financial Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -11.9%.

4. Consistency of the profitability

5. Predictability Rank


Cholamandalam Financial Holdings Profitability Rank Related Terms

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Cholamandalam Financial Holdings (BOM:504973) Business Description

Traded in Other Exchanges
Address
No. 234, NSC Bose Road, Dare House, Chennai, TN, IND, 600 001
Cholamandalam Financial Holdings Ltd along with its subsidiaries is a diversified investment company under the Murugappa Group. It offers financial services that include general insurance, residential mortgages, auto loans, risk services, and non-banking financial services. The company's activities are located exclusively in India. It has two primary products/service segments which are Financial Services and Insurance and allied services.

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