The Economic Times daily newspaper is available online now.

    Buy Cholamandalam Finance, target price Rs 650: Motilal Oswal

    Synopsis

    Cholamandalam Investment & Finance Company Ltd., incorporated in the year 1978, is a Large Cap company (having a market cap of Rs 44544.31 Crore) operating in NBFC sector.

    buy-sell
    Promoters held 51.6 per cent stake in the company as of March 31, 2021, while FIIs held 16.5 per cent, DIIs 24.4 per cent and public and others 7.5 per cent.
    Motilal Oswal has buy call on Cholamandalam Investment & Finance Company with a target price of Rs 650. The current market price of Cholamandalam Investment & Finance Company Ltd. is Rs 544.

    Cholamandalam Investment & Finance Company Ltd., incorporated in the year 1978, is a Large Cap company (having a market cap of Rs 44544.31 Crore) operating in NBFC sector.

    Financials
    For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2479.80 Crore, down -1.61 % from last quarter Total Income of Rs 2520.48 Crore and up 14.51 % from last year same quarter Total Income of Rs 2165.57 Crore. Company reported net profit after tax of Rs 245.32 Crore in latest quarter.

    Investment Rationale
    Over the past year, CIFC has weathered the pandemic well. Its collection efforts resulted in largely stable GNPLs without any large write-offs. On the business front, it gained market share across products. While disbursements would be muted in 1HFY22 due to the second COVID wave, we expect them to pick up thereafter. The brokerage expects overall AUM growth to pick up from high single-digits in FY22E to ~15% in FY23E. We also increase our FY22E credit cost estimate to 1.7% from 1.1%, given the increasing lockdowns across states. It has cut its EPS estimates by 7-19%. The company would deliver healthy (18-20%) RoE going forward.

    Promoter/FII Holdings
    Promoters held 51.6 per cent stake in the company as of March 31, 2021, while FIIs held 16.5 per cent, DIIs 24.4 per cent and public and others 7.5 per cent.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in