'Buy' Cholamandalam Stock Maintains Motilal Oswal, Sees Long-Term Growth Engines Intact

Cholamandalam is navigating a complex operating environment by reinforcing its core businesses while taking corrective measures in underperforming segments..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. 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 amid a weak macro environment.  The company is navigating a complex operating environment by reinforcing its core businesses while taking corrective measures in underperforming segments. A key management priority is improving operational efficiency, with efforts directed toward enhancing productivity and optimizing costs, particularly in its vehicle and home loan businesses. Cholamandalam trades at 3.8x FY27E P/BV, a premium that we believe 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. We expect Cholamandalam to deliver a PAT CAGR of ~25% over FY25-28, with RoA/RoE of 2.7%/20% by FY28. We reiterate Buy with a target price of Rs 1,920 (based on 4x Sep’27E book value per share)..Click on the attachment to read the full report:.Tech Mahindra Q2 Review — Systematix Maintains 'Sell' On The Stock; Says Current Valuations Limits 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 Stock Maintains Motilal Oswal, Sees Long-Term Growth Engines Intact

Although currently experiencing a soft cyclical patch, Cholamandalam remains a robust franchise, adds the brokerage.

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