Buy Cholamandalam Investment and Finance ; target of Rs 1075: Axis Direct
Axis Direct is bullish on Cholamandalam Investment and Finance has recommended buy rating on the stock with a target price of Rs 1075 in its research report dated March 24, 2017.
June 09, 2017 / 10:55 AM IST
It seems that nationwide lockdown has not much impacted the fertilizer sector. In May 2020, the Indian Fertiliser industry has witness sales growth of 25% to 5 million tonnes as compared to 4 million tonnes in the same month last year. Coromandel International and Chambal Fertilisers have seen major sales growth in the sector. The research firm Prabhudas Lilladher is bullish on 5 stocks in the sector and among that they expect stock Insecticides India may see the upside of 82 percent, report dated June 09, 2020.
Axis Direct's report on Cholamandalam Investment and Finance
We interacted with Mr. Arulselvan, CFO of Cholamandalam Investment and Finance (CIFC), at our Auto Conference to get an update on business and understand change in management team. CIFC plans to achieve 65:25:10 mix of Vehicle: Mortgage: Trip financing/MSME by consciously slowing down on home equity segment and scaling up trip finance segment.
Overhang on the stock due to Mr. Vellayan Subbiah’s status within Murugappa group is now behind. The stock has corrected ~7% since our last review and, now offers a good entry point. We upgrade the stock to BUY with an unchanged TP of Rs 1,075 (11% upside from CMP; valued at 3.8x FY18E ABV of Rs 284).At CMP of Rs 972, the stock trades at 3.4x FY18E ABV.
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