Cholamandalam Investment & Finance Company Ltd., incorporated in the year 1978, is a Large Cap company (having a market cap of Rs 43182.87 Crore) operating in NBFC sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2481.91 Crore, up .09 % from last quarter Total Income of Rs 2479.80 Crore and up 16.76 % from last year same quarter Total Income of Rs 2125.61 Crore. Company reported net profit after tax of Rs 329.12 Crore in latest quarter.
Investment Rationale
The higher credit cost estimate in FY22E was mitigated by an expected improvement in NII and other fee income, leading to only a minor change to the estimates. The brokerage expects the company to deliver healthy RoE of 17–20% over the next two years. The stock trades at 3.0x FY23E P/BV. The brokerage maintains Buy rating on the stock, with TP of INR650/share (4x FY23E BVPS).
Promoter/FII Holdings
Promoters held 51.6 per cent stake in the company as of June 30, 2021, while FIIs held 18.9 per cent, DIIs 21.8 per cent and public and others 7.7 per cent.
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