Sharekhan's research report on Cholamandalam Investment and Finance Company
Cholamandalam Investment & Finance Company (CIFC) remains reasonably confident to achieve a 20-25% loan growth in FY26E, led by expanding its existing non-vehicle book through branch expansion and further diversifying its product offerings amid weak demand environment in vehicle segment. New investments will be a temporary drag on profitability but the underlying positive trends on NIMs post H1FY26 and a slight moderation in credit costs would support its profitability in FY26E. Credit cost should see meaningful easing (unless any economic shock hits the business in FY27E) further supporting the profitability.
Outlook
We reiterate a Buy rating with a revised PT of Rs. 1,900. The stock trades at 4.8x/3.9x its FY26E/FY27E BV estimates.
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Cholamandalam Investment and Finance Company - 01072025 - khan
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