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Cholamandalam Shares May Rally 22%, Says Motilal Oswal After Q1 Earnings Beat — Check Hiked Target Price

Cholamandalam Investment delivered a strong operating performance, supported by healthy disbursement momentum, 22% YoY AUM growth, and steady margins.

Cholamandalam Shares May Rally 22%, Says Motilal Oswal After Q1 Earnings Beat — Check Hiked Target Price
Cholamandalam's Q1 FY27 PAT grew 46% YoY to Rs 1,654 crore, beating estimates by around 14%.
(Photo: NDTV Profit/ AI generated image)
STOCKS IN THIS STORY
Cholamandalam Investment & Finance Company Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Cholamandalam Investment and Finance Company Ltd. delivered a strong operating performance, supported by healthy disbursement momentum, ~22% YoY AUM growth, and steady margins.

While asset quality witnessed some sequential deterioration, management attributed it to normal seasonal trends rather than any underlying portfolio stress and remains confident of asset quality improvement going forward.

The stock currently trades at ~3.9x FY27 P/B.

The brokerage models a compound annual growth rate of 20%/21%/ 27% in disbursement/AUM/PAT over FY26-28E.

Motilal Oswal estimates an RoA/RoE of ~2.7%/20% in FY28E and reiterates its Buy  rating with a target price of Rs 2,140 (premised on 4x Mar'28E book-value-per-share).

Click on the attachment to read the full report:

Motilal Oswal Report Chola Q1.pdf
VIEW DOCUMENT

ALSO READ: Tata Power Shares In Focus As ICICI Securities Remains Bullish After Inline Q1 Results — Check Target Price

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