Cholamandalam Finance share price: Buy Chola Finance, target price Rs 703: ICICI Securities

Cholamandalam Finance share price: Buy Chola Finance, target price Rs 703: ICICI Securities

Cholamandalam Investment & Finance Company Ltd. key Products/Revenue Segments include Interest, Fees & Commission Income, Sale of services and Income From Sale Of Share & Securities for the year ending 31-Mar-2021.

Cholamandalam Investment & Finance Company Ltd., incorporated in the year 1978, is a Large Cap company (having a market cap of Rs 52442.50 Crore) operating in NBFC sector.

Highlights

  • Investment RationaleThe brokerage believes venturing into new segments will further diversify its asset profile and also open up new growth opportunities. Going digital will also result in relatively contained opex and better RoAs. Given its execution track record and strong parentage and brand, the brokerage believes Chola‚Äôs execution in these new potential businesses would be superior. This will boost our AUM growth estimate of 18% from existing products and sustain RoA/RoE profile over 3%/20% by FY23E. Maintain BUY with a target price of Rs703.

  • Financials
    For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 2496.71 Crore, up .60 % from last quarter Total Income of Rs 2481.91 Crore and up 1.58 % from last year same quarter Total Income of Rs 2457.89 Crore. Company reported net profit after tax of Rs 610.16 Crore in latest quarter.

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Promoter/FII Holdings Promoters held 51.57 per cent stake in the company as of 30-Sep-2021, while FIIs owned 21.36 per cent, DIIs 19.06 per cent.