Chola has demonstrated resilience in the face of recent stock underperformance due to increased regulatory scrutiny and rising non-performing asset (NPA) ratios. The company's diversified business model and focus on rural-centric retail customers have contributed to its ability to weather these challenges.

Improved realizations have bolstered the company's quarterly performance, highlighting its strong operational framework. Medium-term growth prospects are positive, driven by trends such as the "China plus" strategy and protectionist measures impacting the tyre industry.

While valuations may not be cheap, Cholamandalam's outlook remains favorable, with growth surpassing guidance, particularly in the mortgage loan segment. The company's stable asset quality continues to attract investor interest, positioning it well for future recovery in the financial sector.