Best Stocks to Buy Today : Kotak Securities's call on Cholamandalam In & Fin Co - May 16

Kotak Securities recommends buying Cholamandalam Investment and Finance Company (Cholamandalam In & Fin Co) at the current market price of Rs 1247.5, with a target price of Rs 1270. The stock is expected to perform well due to factors such as improved asset quality, strong growth in loan book, and cost control measures implemented by the company. The stock has a potential upside of approximately 2% from the current market price.

About Cholamandalam In & Fin Co:

Cholamandalam Investment and Finance Company Limited (Cholamandalam) is a diversified financial services company headquartered in Chennai, India. It offers a comprehensive range of products and services across various segments, including vehicle finance, home loans, SME finance, rural finance, and investment banking. Cholamandalam has a strong presence in India with a network of over 1,100 branches and more than 40,000 employees. Listed on the National Stock Exchange of India (NSE), the company is a part of the Murugappa Group, a leading business conglomerate in India.

52 Week Price Trend:

Cholamandalam Investment and Finance Company Limited (Cholamandalam In & Fin Co.), currently trading at Rs 1247.5, has experienced significant price fluctuations in the past year, with a 52-week high of Rs 1310 and a low of Rs 709.85. This range represents a potential upside of 5.1% to reach the previous high and a downside risk of approximately 39.6% if it were to fall to the previous low. Investors should carefully consider both the potential for gains and the associated risks before making investment decisions.

Stratzy's MOST Analysis:

CHOLAFIN has been assigned a stellar AAA rating by Stratzy's MOST framework, indicating exceptionally low fundamental risks. This rating is a testament to CHOLAFIN's robust management, promising outlook, impeccable safety measures, and positive trend analysis. The MOST framework evaluates companies across these four pillars, assigning scores that culminate in an overall rating. CHOLAFIN's AAA rating signifies its strong financial stability, prudent risk management, sustainable growth prospects, and adherence to industry best practices. Investors seeking a low-risk investment with solid fundamentals may find CHOLAFIN a compelling option.

Company's Fundamentals:

Cholamandalam In & Fin Co (NSE: CHOLAFIN), a financial services company listed on the National Stock Exchange (NSE) in India, has a Stock PE of 29.06. This indicates that the market is willing to pay 29.06 times the company's annual earnings per share for its stock. Its PB Ratio of 5.9 suggests that the stock is trading at 5.9 times the company's book value per share, indicating that it is moderately valued relative to its assets. The Dividend Yield of 0.18% implies that investors can expect to receive an annual dividend of 0.18% of the current stock price.

Fundamental and Technical information provided in this blog were last updated on 16 May, 2024

Disclaimer: The information and recommendations presented in this section, including any attached reports, are sourced from third-party providers through diverse channels. The views and opinions expressed within these materials belong solely to their respective creators. These views and opinions do not necessarily reflect the position of Stratzy Fintech Pvt Ltd. Stratzy explicitly disclaims any guarantees, express or implied, regarding the accuracy and reliability of the provided content. We strongly advise consulting with a licensed financial advisor before making any investment decisions based on this information. Remember, seeking independent financial advice is crucial.