Over FY11-15, the Chennai-based Murugappa groups Cholamandalam Investment (CIFC) diligently built national reach, scale and process quality in its CV finance and home equity (LAP) business. Notably, CIFC improved costs even as macros and asset quality slipped. As India readies for a saucer-shaped macro recovery, we see a sweet spot emerging with scale and spread benefits for CIFC. Valuations, though, are not cheap at 2.84x FY17E ABV.