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Last Updated : Feb 01, 2019 04:45 PM IST | Source: Moneycontrol.com

Accumulate Cholamandalam Investment and Finance; target of Rs 1360: Dolat Capital

Dolat Capital recommended accumulate rating on Cholamandalam Investment and Finance with a target price of Rs 1360 in its research report dated January 31, 2019.

 
 
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Dolat Capital's research report on Cholamandalam Investment and Finance


In our visit note dated 24th Dec 2018, we were confident of a strong performance, even in the crisis. It reported an even better performance. Disbursements grew 13% YoY with vehicles growing 11% YoY, and LAP 18% YoY. A 34% YoY growth in vehicles and a 14% growth in LAP aided a 32% YoY growth in AUM. The negative carry on upfront lines drawn (` 5000 mn) let NIMs down, but we are not perturbed. We have factored a 20% growth in AUM, dragged by weaker demand sentiment in its largest contributing CV business, despite its strong market position.


Outlook


We have also factored a marginal decline in NIMs in FY21 as competitive intensity erode pricing premium in used-vehicles. Maintain Accumulate at a lower multiple.


For all recommendations report, click here


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First Published on Feb 1, 2019 04:45 pm
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