The IIFL Securities Report: Buy Cholamandalam In & Fin Co - July 18
IIFL Securities recommends buying Cholamandalam Investment and Finance Company (Cholamandalam In & Fin) with a target price of Rs. 1472. The current market price of Cholamandalam In & Fin is Rs. 1435.85. This suggests a potential upside of approximately 2.5% from the current market price. The recommendation is based on the company's strong fundamentals, including its consistent financial performance, diversified portfolio, and strong management team.
About Cholamandalam In & Fin Co:
Cholamandalam Investment and Finance Company Limited (Chola) is an Indian non-banking financial company (NBFC) headquartered in Chennai, Tamil Nadu. It was established in 1978 and is a part of the Murugappa Group. Chola offers a range of financial services including vehicle finance, home loans, business loans, and wealth management. As of 2023, Chola has a presence in over 1,200 locations across India and a customer base of over 1.6 million. The company has consistently been recognized for its financial performance and customer service, and has received numerous awards and accolades over the years.
52 Week Price Trend:
Cholamandalam In & Fin Co's CMP of Rs 1435.85 is considerably higher than its 52-week low of Rs 709.85, indicating a significant appreciation in stock value over the past year. However, it remains below its 52-week high of Rs 1310, suggesting some potential for further growth. The company's recent financial performance and market sentiment towards the broader financial sector will influence the stock's movement in the near future.
Stratzy's MOST Analysis:
Cholamandalam Investment and Finance (CHOLAFIN) has received an AAA rating by Stratzy's MOST framework, indicating minimal fundamental risk. This assessment is based on the company's strong management team, positive outlook, safety of operations, and favorable trend in financial performance. The MOST framework evaluates these factors to provide insights into the company's stability, growth potential, and overall financial health.
Company's Fundamentals:
Cholamandalam Investment & Finance Company Limited (CHOLAFIN) is a non-banking finance company listed on the National Stock Exchange (NSE). Its stock currently trades at a PE ratio of 29.06, indicating that investors are willing to pay 29.06 times the company's annual earnings. The PB ratio of 5.9 suggests that the market value of CHOLAFIN's shares is 5.9 times its book value. Finally, CHOLAFIN's dividend yield of 0.18% implies that investors receive a dividend of 0.18% for every rupee invested in the company. These metrics provide insights into CHOLAFIN's valuation, profitability, and dividend distribution.
Fundamental and Technical information provided in this blog were last updated on 18 Jul, 2024
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