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Last Updated : Sep 18, 2018 02:12 PM IST | Source: Moneycontrol.com

Buy Cholamandalam Investment & Finance; target of Rs 1764: HDFC Securities

HDFC Securities is bullish on Cholamandalam Investment and Finance has recommended buy rating on the stock with a target price of Rs 1764 in its research report dated July 27, 2018.

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HDFC Securities's research report on Cholamandalam Investment & Finance


CIFC’s business momentum sustained through 1Q even though reporting changes (under  IND  AS)  created  some  ambiguity.  Disbursement growth (+45% YoY) continued  to  dazzle,  with  VF  leading the way. Though a higher share of lower-yielding  HCV  business  (18% of VF disbursements vs. 11% YoY) dented margins  partially, the 47bps dip could largely be attributed to the IND AS shift.  Management’s attribution of lower costs to increasing oplev (~50bps improvement) was a key positive.


Outlook


We remain constructive despite rich valuations, as  best-in-class  return  ratios  will  continue  to  inch  up (14bps over FY18-20E). Maintain BUY with a TP of Rs 1,764 (4x Mar-20 ABV of Rs 441).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Aug 1, 2018 06:30 pm
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