Buy Cholamandalam Inv and Fin; target of Rs 2000: Motilal Oswal

Buy

Motilal Oswal's research report on Cholamandalam Inv and Fin

On 22nd Dec’25, an agency named Cobrapost released an investigative report alleging large-scale related-party transactions, cash handling irregularities, governance lapses, and regulatory non-compliance at CIFC. CIFC’s management responded promptly, categorically refuting the claims and stating that the allegations are malicious, distorted, and motivated, and lack any factual or regulatory basis. CIFC’s management convened an investor call to address investor queries and the allegations raised, reiterating that the claims are baseless, selective, and stem from misinterpretation of disclosures and the applicable regulatory framework. The company further stated that there is no change in business strategy, operating performance, or guidance, and reiterated confidence in delivering on its stated growth, profitability, and asset quality objectives.

Outlook

CIFC remains a robust franchise, with an expected CAGR of ~20% in AUM and ~25% in PAT over FY25-28, alongside projected RoA/RoE of 2.7%/20% in FY28. Reiterate our BUY rating with a TP of INR2,000 (4x Dec’27E BVPS).

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Cholamandalam Inv and Fin - 24122025 - moti