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.
