Buy Cholamandalam Investment and Finance Company; target of Rs 1881: Prabhudas Lilladher

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Cholamandalam Investment and Finance Company

We initiate coverage on CIFC with BUY recommendation given that the company has doubled its AUMs defying business cycles, GNPAs averaged at <3% levels (barring demo impact in FY17) translating into steady 17%+ RoE's for past five years. We expect current cyclical recovery to enable 15% CAGR in CV volumes aiding CIFC to grow its AUM at 20% CAGR over FY18-20. Lower credit costs at 80bps and improvement in HE business will enable 27% PAT CAGR over same period. We expect premium valuations to sustain on the back of CIFC's diversified vehicle finance book, secular home equity and resilient balance sheet.

Outlook

We assign a P/ABV multiple of 4.2x FY20E and arrive at a price target of Rs1,881. BUY.

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