Please refer to important disclosures at the end of this report
Cholamandalam has delivered a healthy 16.7% CAGR in its loan book over last
two years and a healthy ROE of 17% in FY2016, with scope for furthe
leveraging as capital adequacy is strong at 18.73%. Latest quarterly numbers
show further acceleration in performance: loan disbursement is up 30% yoy, with
vehicle finance up 29%, and newer segments like MSME & home loans up 207%
& 122% respectively. Earnings growth in the latest quarter remains strong at 50%
and net NPAs are stable qoq at 2.1% unlike public sector lenders. In our view,
from a fundamental perspective, it is one of the top quality NBFCs and selected
into our selection universe. The daily chart depicts a possibility of price pattern
breakout beyond the 1,200 mark. In addition, the ‘ADX (14)’ indicator as well as
the ‘RSI-Smoothened’ are positively poised. Hence, Buy.
CMP `1,159
Stock Info
Bloomberg Code CIF[email protected]N
Shareholding Pattern (%)
Promoters 53.1
MF / Banks / Indian Fls 24.3
FII / NRIs / OCBs 17.1
Indian Public / Others 5.5
Abs. (%) 3m 1yr 3yr
Sensex 6.7 8.3 52.8
Chola. Inv. & Fin. 18.3 91.5 446.6
Market Cap (
cr) 18,112
Beta 0.1
52 Week High / Low 1,194/580
Avg. Daily Volume 33,861
Face Value (
BSE Sensex 28,452
Nifty 8,786
Reuters Code CHLA.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Cholamandalam Inv. and Fin.
Others | Finance
August 31, 2016
Cholamandalam Inv. and Fin. | Finance
ugust 31, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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