Accumulate Cholamandalam Inv and Fin Co; target of Rs 865: KR Choksey

KR Choksey recommended accumulate rating on Cholamandalam Inv and Fin Co with a target price of Rs 865 in its research report dated February 04, 2023.

Broker Research

February 08, 2023 / 22:03 IST

26 Aug, 2025 12:21

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KR Choksey's research report on Cholamandalam Inv and Fin Co

NII for Q3FY23 stood at INR 15,983 Mn, a growth of 17.2% YoY (+7.4% QoQ). The Pre-Provision profit was at INR 10,797 Mn against INR 9,525 Mn in Q3FY22, an increase of 13.4%. Profit after Tax (PAT) for Q3FY23 was at INR 6,843 Mn agaito INR 5,238 Mn in Q3FY22, reporting a growth of 30.6% YoY/ 21.5% QoQ. Assets under management as of December 31, 2022, stood at INR 954,680 Mn as compared to INR 727,240 Mn as of December 31, 2021, a growth of 31.3% YoY/ 8.9% QoQ. GNPA and NNPA as of December 31, 2022, stood at 5.37% and 3.69% vs 5.84% and 3.99% as of September 30, 2022, respectively. The Capital Adequacy Ratio (CAR) of the company as on December 31, 2022, was at 17.75%.

Outlook

We assign a P/ABV multiple of 4.25x to the FY25E adj. BVPS of INR 203.9 to arrive at a target price of INR 865/share (earlier INR 820), implying an upside of 10.7% from the CMP. Accordingly, we maintain our rating on the shares of Cholamandalam Investment & Finance Company Ltd. as ‘‘ACCUMULATE’.

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