IIFL Securities Stock Idea: Buy Cholamandalam In & Fin Co with Target Rs 1346

On June 6th, IIFL Securities issued a buy recommendation for Cholamandalam Investment & Finance Company (Cholamandalam In & Fin Co) at its current market price of Rs. 1308.1. The brokerage firm has set a target price of Rs. 1346 for the company, indicating an upside potential of approximately 2.9%. This recommendation is based on Cholamandalam's strong financial performance, asset quality, and growth prospects in its core businesses, particularly in the vehicle financing segment.

About Cholamandalam In & Fin Co:

Cholamandalam Investment and Finance Company Ltd (CIFCL) is a non-banking finance company (NBFC) headquartered in Chennai, India. It is a part of the Murugappa Group and offers a wide range of financial services, including vehicle finance, home loans, business loans, and investment advisory services. The company has a strong presence across India with over 1,000 branches and 5,000 employees. CIFCL's customer base includes individuals, small businesses, and large corporates. The company is known for its customer-centric approach and innovative financial solutions.

52 Week Price Trend:

Cholamandalam Investment and Finance Company Limited (Cholamandalam In & Fin Co) is currently trading at Rs 1308.1, close to its 52-week high of Rs 1310. The company's stock has witnessed a significant surge, having risen from its 52-week low of Rs 709.85. This remarkable growth indicates a positive market sentiment towards Cholamandalam In & Fin Co. The company's strong financial performance, strategic initiatives, and focus on customer satisfaction have likely contributed to this positive outlook.

Stratzy's MOST Analysis:

Cholamandalam Investment and Finance Company (CHOLAFIN) has been rated AAA by Stratzy's MOST framework, indicating a low fundamental risk. The rating is based on the company's strong management, positive outlook, high safety, and consistent trend. CHOLAFIN's strong financial performance, prudent risk management, and commitment to customer service have contributed to its high MOST rating.

Company's Fundamentals:

Cholamandalam In & Fin Co (NSE: CHOLAFIN) is a well-established company with a Stock PE of 29.06, indicating that its share price is trading at a premium relative to its earnings. Additionally, the company's PB Ratio of 5.9 suggests that its market value is approximately 5.9 times its book value, implying that investors are valuing the company's assets above their accounting value. Despite its relatively high valuation, CHOLAFIN offers a modest Dividend Yield of 0.18%, indicating that investors may prioritize capital appreciation over dividend income from this stock.

Fundamental and Technical information provided in this blog were last updated on 06 Jun, 2024

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