Cholamandalam Investment and Finance Company (Chola) has shown resilience with a diversified business model and a focus on rural retail customers, despite recent stock underperformance due to rising NPA ratios. The company's quarterly performance exceeded guidance, supported by improved realizations and a stable asset quality, positioning it well for future growth amid medium-term triggers like protectionist measures in the tyre industry. While valuations are not inexpensive, the outlook remains positive.
KR Choksey has issued a bullish recommendation for Cholamandalam Investment and Finance Company, setting a target price of Rs 1,531. The company's Q2FY25 results showed a 34.6% YoY growth in Net Interest Income, with a profit after tax increase of 26.3% YoY. Despite slight asset quality concerns, management anticipates improvements in the second half of FY25.
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