The IIFL Securities Report: Buy Cholamandalam In & Fin Co - June 06

IIFL Securities has recommended buying Cholamandalam Investment and Finance Company (Cholamandalam In & Fin Co) at the current market price of Rs 1308.1. The brokerage firm has set a target price of Rs 1346 for the stock, implying an upside potential of around 3%. IIFL Securities cited the company's strong growth prospects, diversified business model, and healthy financial position as reasons for its buy call. Cholamandalam In & Fin Co is a leading non-banking financial company (NBFC) in India, with a presence in vehicle financing, home loans, and other financial services.

About Cholamandalam In & Fin Co:

Cholamandalam Investment and Finance Company (Chola) is a non-banking financial company (NBFC) headquartered in Chennai, India. It offers various financial services, including vehicle finance, home loans, business loans, and investment advisory services. Chola has a wide network of branches and offices across India and is a subsidiary of the Murugappa Group, a leading Indian conglomerate. The company has a strong track record of financial performance and is known for its customer-centric approach.

52 Week Price Trend:

Cholamandalam Investment and Finance Company (CHOLAFIN) is currently trading at Rs 1308.1, close to its 52-week high of Rs 1310. The company has witnessed a significant rise in its share price over the past year, surging by over 84% from its 52-week low of Rs 709.85. This strong performance reflects the company's resilient business model, prudent risk management practices, and growth potential in the financial services sector. CHOLAFIN's diversified operations, including vehicle financing, home loans, and commercial lending, contribute to its stable revenue streams and profitability. Investors may consider CHOLAFIN's current valuation and growth prospects while making investment decisions.

Stratzy's MOST Analysis:

CHOLAFIN has received an "AAA" rating from Stratzy's MOST framework, indicating exceptionally low fundamental risks. This rating is based on CHOLAFIN's strong management, positive outlook, high safety, and positive industry trend. The MOST (Management, Outlook, Safety, and Trend) framework assesses companies based on these pillars, assigning scores that culminate in an overall risk rating. CHOLAFIN's AAA rating demonstrates its solid financial performance, well-established management team, favorable industry outlook, and robust safety measures.

Company's Fundamentals:

Cholamandalam In & Fin Co (NSE: CHOLAFIN) is a company listed on the National Stock Exchange of India (NSE). Its stock is currently trading at a Price-to-Earnings (PE) ratio of 29.06, indicating 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 company's market value is 5.9 times its book value, indicating that investors are valuing the company at a premium to its accounting value. The Dividend Yield of 0.18% represents the annual dividend paid per share relative to the current market price, indicating a low dividend payout ratio. This suggests that the company is retaining earnings for growth and expansion rather than distributing them as dividends.

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

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