Last updated: May 04, 2023, 2:11 PM IST
Cholamandalam investment and finance company
Share price of Cholamandalam Investment and Finance Company rose to 9.4 percent during Thursday trading
The share price of Cholamandalam Investment and Finance Company rose to 9.4 per cent during Thursday’s trading and reached a 52-week high of Rs 970.20 on BSE. This is after it reported a 24% increase in standalone profit for the quarter ended March 31 at Rs 852.8 crore.
The company had posted a profit of Rs 689.6 crore in the corresponding quarter of the previous year.
Standalone total income for the quarter under review increased by 44.17 percent year-on-year to Rs 3,794.26 crore from Rs 2,631.75 crore registered in the same quarter of last year.
The company said payouts grew 65 percent yoy to Rs 21,020 crore during the March quarter, while for FY 2022-23 (Fy23), it grew 87 percent yoy to Rs 66,532 crore.
Should you invest?
Akshay Ashok, a research analyst at brokerage firm Prabhudas Lilladher, pointed out that Cholamandalam Investment’s performance was very good on the face of it as AUM growth exceeded the brokerage’s high expectations, which is positive.
He has a ‘hold’ rating on the stock with a price target of ₹820.
Ashok went on to say that the strong traction in new business is also a strong positive. He said the stock is handsomely valued at 4.7 times FY24 P/ABV.
JP Morgan maintained an overweight rating for Cholamandalam Investment with a price target of Rs 1,020. “The company recorded margin improvement while maintaining system-leading growth, which addresses our primary concern,” it said.
“All growth vectors are firing. Asset quality remains solid and premium valuations may persist in the near term,” he added.
Motilal Oswal has a positive view on Cholamandalam Investment and Finance with a buy rating.
“The vulnerable asset pool (Stage 2 + 3) fell 170 bps quarter on quarter to 6.7%. The improvement in the 30+dpd pool suggests that organic collections with no extraordinary write-offs contributed to this improvement. The key things to look out for are the demand outlook for both new and used vehicles, the evolving strategy in new product segments in the SME and consumer ecosystem, and the margin trajectory.
disclaimer:Disclaimer: The opinions and investment tips of experts in this News18.com report are their own and not those of the website or its management. Users are advised to contact certified experts before making investment decisions.
Read all the latest business news, tax news and stock market updates here
