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

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

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.

Read More