Is Cholamandalam Finance Ready for a Breakout?

Cholamandalam Financial Holdings Limited (CFHL), a prominent entity within the Murugappa Group, stands as a testament to India's dynamic financial services sector. Established in 1978, CFHL has evolved into a comprehensive investment company, holding significant stakes in various financial services and risk management enterprises.

Financial Performance

In the fiscal year 2023-2024, CFHL reported consolidated revenue of ₹258,035.2 million, reflecting a significant increase from ₹181,458.7 million in the previous year. The net income for the same period stood at ₹17,725.2 million, up from ₹12,902.3 million in 2022-2023. Total assets as of March 31, 2024, were valued at ₹1,769,176.7 million, with total liabilities amounting to ₹1,666,759.4 million.

Shareholding Structure

The shareholding pattern of CFHL is as follows:

• Promoters: 46.45%
  
• Foreign Investors:17.07%
  
• Institutional Investors:22.94%
  
• Government Holding:0.46%
  
• Non-Promoter Corporate Holding:2.11%
  
• Public and Others:10.97%
  

Technical Analysis
From December to February, the price remained in a consolidation phase and formed a double bottom pattern. The breakout from this pattern occurred on **27/02/2025**. If the price closes and sustains above 1644 on the daily timeframe, we can anticipate a strong upward movement towards 1981.

• R1 (First Resistance):1744
  
• R2 (Second Resistance):1863
  
• R3 (Third Resistance):1981
  

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making investment decisions.