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Cholamandalam Investment shows resilience amid challenges and growth potential
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.
Cholamandalam Investment and Finance Company rated buy with target of 1531 rupees
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.