Cholamandalam Q3 Results Review: DRChoksey Reiterates 'Buy' On The Stock, Hikes Target Price — Here's Why

Cholamandalam retains its leadership in vehicle financing, with strong AUM growth despite sector challenges. Expansion into Tier-3 Tier-4 towns for home loans will provide long-term growth..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..Deven Choksey Report.Cholamandalam Investment and Finance Company Ltd. has demonstrated strong assets under management growth of ~34.0% YoY, driven by robust disbursements across key segments, particularly vehicle finance, and loan against property. While elevated credit costs remain a concern, management’s strategic exit from partnerships in the CSEL segment and improving asset quality in small and light commercial vehicles should aid gradual normalization. Despite near-term macroeconomic challenges, Cholamandalam’s well-diversified portfolio, prudent risk management, and strong execution capabilities reinforce confidence in sustained growth. We have factored in a growth of 23.8% CAGR in AUM and 26.3% in profits over FY24-27E, led by healthy operating performance driven by healthy operational performance and increasing traction in the loan against property and home loan segments. However, we trim our Adjusted book value estimates for FY26E/FY27E by 2.3%/2.4%, respectively, to account for the impact of higher credit costs. We roll over our valuation to FY27E and assign a P/ABV multiple of 4.8 times (earlier 5.5x FY27) to the FY27E adjusted book value per share of Rs 339.6 to arrive at a target price of Rs 1,630/share (earlier Rs 1,531), implying an upside of 16.8% from the current market price. Accordingly, we reiterate our rating at “Buy” on the shares Cholamandalam..Click on the attachment to read the full report:.Sundaram Finance Q3 Results Review: Inline; Market Share Gain Drive Growth — Systematix Maintains 'Hold'.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.

Cholamandalam Q3 Results Review: DRChoksey Reiterates 'Buy' On The Stock, Hikes Target Price — Here's Why

Despite near-term macroeconomic challenges, Cholamandalam’s well-diversified portfolio, prudent risk management, strong execution capabilities reinforce confidence in sustained growth, says DRChoksey

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Cholamandalam Q3 Results Review: DRChoksey Reiterates 'Buy' On The Stock, Hikes Target Price — Here's Why

Despite near-term macroeconomic challenges, Cholamandalam’s well-diversified portfolio, prudent risk management, strong execution capabilities reinforce confidence in sustained growth, says DRChoksey

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