IIFL Securities's Stock Idea: Buy Cholamandalam In & Fin Co with Target Rs 1425

On June 13, IIFL Securities issued a buy recommendation for Cholamandalam Investment and Finance Company (Cholamandalam In & Fin Co) at its current market price of Rs 1373.05. The brokerage firm set a target price of Rs 1425, indicating a potential upside of approximately 3.8%. This recommendation is based on the company's strong fundamentals, including its robust loan growth, healthy asset quality, and growing market share in the vehicle finance segment.

About Cholamandalam In & Fin Co:

Cholamandalam Investment and Finance Company Limited (Cholamandalam In & Fin Co) is a non-banking financial company (NBFC) in India. It is a part of the Murugappa Group. The company provides a range of financial services, including vehicle finance, home loans, business loans, and investment advisory services. Cholamandalam In & Fin Co is listed on the National Stock Exchange (NSE) in India. The company has a market capitalization of over 40,000 crores as of March 2023, with over 200 branches and 2,000 employees.

52 Week Price Trend:

Cholamandalam Investment and Finance Company Limited (CHOLAFIN) is currently trading at Rs 1373.05, within the 52-week range of Rs 709.85 to Rs 1310. The stock has been on an upward trend since its 52-week low, indicating positive market sentiment. CHOLAFIN is a leading non-banking financial institution in India, providing a wide range of financial services including vehicle financing, home loans, business loans, and investment advisory services. The company's strong financial performance and a well-diversified business model have contributed to its consistent growth in recent years.

Stratzy's MOST Analysis:

Stratzy's MOST framework has assigned an AAA rating to CHOLAFIN, indicating that the company poses a very low fundamental risk to investors. This rating is based on a thorough assessment of CHOLAFIN's management, outlook, safety, and trend factors. The AAA rating suggests that CHOLAFIN has strong management, a positive outlook, a high degree of safety, and a favorable trend, making it an attractive investment option for those seeking to minimize risk in their portfolios.

Company's Fundamentals:

Cholamandalam In & Fin Co (NSE: CHOLAFIN) is a company listed on the National Stock Exchange (NSE) of India. The stock's Price to Earnings (PE) ratio, which is currently at 29.06, indicates that investors are willing to pay 29.06 times the company's annual earnings for each share. The Price to Book (PB) Ratio of 5.9 suggests that the market value of the company's shares is 5.9 times its book value, indicating that the stock is relatively undervalued. The Dividend Yield of 0.18% implies that investors can expect to receive an annual dividend of 0.18% of the current stock price, providing a modest regular income stream.

Fundamental and Technical information provided in this blog were last updated on 13 Jun, 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.