Embrace Cholamandalam Investment and Finance Company: Sharekhan Sets Ambitious Target at Rs 1425
Sharekhan, in its research report dated December 21, 2023, expresses bullish sentiments towards Cholamandalam Investment and Finance Company (CIFC), endorsing a buy rating and setting an ambitious target price of Rs 1425.
CIFC stands at the cusp of robust AUM growth across diverse product segments, propelled by a robust disbursement surge in its non-vehicle finance portfolio. The Net Interest Margin (NIM) is anticipated to maintain a robust stance (>7.0% over FY25-26E), facilitated by an enhanced yield resulting from a superior product mix, repricing of fixed-rate vehicle loans, and the potential peak-out of CoB. The management anticipates a modest impact from the RBI’s latest revised risk-weight norms, projecting a contained capital adequacy impact of approximately 15-20 bps.
The conviction in CIFC’s ability to deliver industry-leading growth, coupled with a sound NIM and controlled costs, augurs well for an upgraded earnings trajectory. The Profit After Tax (PAT) is forecasted to burgeon at a Compound Annual Growth Rate (CAGR) of 31% over FY23-26E, steering a ~20 bps Return on Assets (ROA) expansion to approximately 2.9%. At the Current Market Price (CMP), the stock trades at Price-to-Book Value (P/BV) ratios of 4.5x/3.6x concerning its FY2025E/FY2026E BV estimates. Sharekhan maintains a Buy rating, accompanied by an upgraded Price Target (PT) of Rs. 1,425.
Disclaimer: The insights and investment recommendations provided by financial experts, broking houses, or rating agencies on Moneycontrol.com are reflective of their perspectives and do not necessarily align with those of the website or its management. Moneycontrol.com encourages users to seek advice from certified experts before making any investment decisions.
TAGS: #Invest #Cholamandalam Investment and Finance Company #Stock Recommendations #Sharekhan
“Invest Smart: Seize Growth Potential with Buy Call on Cholamandalam Investment and Finance Company at Rs 1425 – Sharekhan Insight!”
Meta Description: “Unlock growth opportunities! Dive into Sharekhan’s buy recommendation for Cholamandalam Investment and Finance Company at Rs 1425. Don’t miss out on potential gains!”
URL: “invest-smart-buy-cholamandalam-shares-sharekhan-insight”
Tags: Invest, Cholamandalam Investment and Finance Company, Sharekhan, Stock Recommendation, Financial Insights
Focus Keywords: Invest, Cholamandalam Investment and Finance Company, Sharekhan, Rs 1425, Stock Recommendation
Banner Caption: “Seize the Future: Invest in Cholamandalam! Sharekhan’s Rs 1425 Target Unveiled! 🚀”
This post is for informational purposes only.Invest responsibly.No guarantees of results. Seek professional guidance before investing.Consult experts for personalized advice.AI-assisted content, editorially reviewed.See our terms for details. Follows Google policies.Not affiliated with Investopedia.com. investopedia.co.in Independent site.
