Buy Cholamandalam Fin Hol: IIFL Securities's Target Price Rs 1750

IIFL Securities has recommended buying Cholamandalam Finance Holdings at the current market price of Rs 1669.35. The target price for Cholamandalam Finance Holdings has been set at Rs 1750. This represents a potential upside of approximately 4.8%. The stock has been showing positive momentum lately and the analysts believe that this trend could continue in the near term. Cholamandalam Finance Holdings is a well-managed company with a strong track record. The company has a strong presence in the vehicle finance segment and is well-positioned to benefit from the expected pickup in economic activity and demand.

About Cholamandalam Fin Hol:

Cholamandalam Financial Holdings Limited (Chola) is a financial services company headquartered in Chennai, India. It offers a wide range of financial products and services, including vehicle finance, home loans, SME loans, investment advisory services, and general insurance. Chola is part of the Murugappa Group, a diversified conglomerate with interests in various industries. The company has a strong presence in India and operates through a network of over 1,200 branches and offices. As of March 31, 2023, Chola had total assets of over INR 95,000 crores and a customer base of over 1.6 million.

52 Week Price Trend:

Cholamandalam Financial Holdings (CHOLAHLDNG) exhibits a strong historical price performance, with a significant appreciation of 224.33% from its 52-week low of Rs. 511.3. Currently trading at Rs. 1669.35, the stock has a potential upside of 28.75% from its 52-week high of Rs. 1296, indicating a favorable trading opportunity. Investors considering CHOLAHLDNG may want to evaluate its financial performance, market position, and growth prospects to make an informed decision.

Stratzy's MOST Analysis:

Cholamandalam Investment and Finance Company (CHOLAHLDNG) has received an AA- rating from Stratzy's MOST framework, indicating low fundamental risks. This rating suggests that CHOLAHLDNG has a strong management team, a positive outlook for the future, a robust safety profile, and a favorable trend in its financial performance. The company's overall score reflects its strong fundamentals and low risk exposure across these four pillars.

Company's Fundamentals:

Cholamandalam Fin Hol (NSE: CHOLAHLDNG) is a reliable financial institution with sound financial indicators. The Stock PE of 12.25 signifies that the current market price is 12.25 times the company's annual earnings per share, indicating a reasonable valuation. The PB Ratio of 2.41 implies that the market value of the company is 2.41 times its book value, indicating a moderate premium over its assets. The Dividend Yield of 0.05% represents the annual dividend income an investor can expect for every Rs. 100 invested, indicating a low level of dividend payout. Overall, these metrics suggest that Cholamandalam Fin Hol is fairly valued with a low dividend yield, making it a stable investment option.

Fundamental and Technical information provided in this blog were last updated on 21 Aug, 2024

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