'Buy' Cholamandalam Finance Shares Maintains Motilal Oswal On Strong Growth Outlook — Check Target Price

In this report Motilal Oswal highlights Cholamandalam’s measured approach of curbing exposure to riskier product lines, while simultaneously expanding newer businesses, such as credit-deposit and gold loans, underscores its commitment to preserving earnings quality and maintaining balance sheet strength..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.Motilal Oswal has reiterated its Buy rating on Cholamandalam Investment and Finance Company Ltd. with a target price of Rs 2,000, valuing the stock at 4x Dec’27E book-value-per-share. The brokerage expects Cholamandalam to deliver a PAT CAGR of ~25% over FY25–28, supported by robust AUM growth, margin expansion, and improving asset quality..Valuation and view Cholamandalam is gradually evolving into a more robust and resilient NBFC—one that is less cyclical, more diversified, and increasingly anchored in stable, secured retail and SME income streams. The company’s measured approach of curbing exposure to riskier product lines, while simultaneously expanding newer businesses, such as CD and gold loans, underscores its commitment to preserving earnings quality and maintaining balance sheet strength.The company is navigating a complex operating environment by reinforcing its core businesses while taking corrective measures in an underperforming segment like consumer and small enterprise loan. A key management priority is improving operational efficiency, with efforts directed toward enhancing productivity and optimizing costs, particularly in its vehicle, home loans and loan-against-property businesses.Cholamandalam trades at 4x FY27E P/BV, a premium that the brokerage believes is well-deserved and likely to sustain. This reflects the company’s consistent focus on navigating vehicle demand cyclicality while sustaining healthy AUM growth and stable asset quality through a well-diversified product mix. Motilal Oswal expects Cholamandalam to deliver a PAT CAGR of ~25% over FY25-28, with RoA/RoE of 2.7%/20% by FY28, hence reiterates Buy with a target price of Rs 2,000 (based on 4x Dec’27E BVPS)..Click on the attachment to read the full report:.Suzlon Energy — 'Buy' Maintained By Motilal Oswal; Strong Pipeline Supports 43% Upside.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Cholamandalam Finance Shares Maintains Motilal Oswal On Strong Growth Outlook — Check Target Price

Motilal Oswal expects Cholamandalam to deliver a PAT CAGR of ~25% over FY25-28, with RoA/RoE of 2.7%/20% by FY28, hence reiterates Buy.

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