Axis Direct
Cholamandalam Invst. & Finance Company Ltd (CIFC) Q1FY21 earnings performance was better than expectations as provisioning was much lower than estimates accompanied by improvement in cost to income. However, since the morat book tag still remains elevated at ~76%
Cholamandalam Invest.. has an average target of 241.00 from 7 brokers.
HDFC Securities
Maintain BUY with a target price of Rs 249 (2.2xFY22E ABV). CIFCs 1QFY21 performance was ahead of our estimates on account of lower provisions. The management believes that COVID-19 related provisions made in 4QFY20 are sufficient. While we have reduced our provision estimates, they remain conservative. CIFCs 1QFY21 disbursal performance is creditable, given the challenging environment. The company remains our top NBFC pick, its ability to access funds, strong capital position, and diversified portfolio will enable the company to capture resurgent growth
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Cholamandalam Investment & Finance Company Ltd. is trading below it's 200 day SMA of 240.9
buy
KRChoksey
CIFC's Net Interest Income (NII) increased 13.8% YoY to INR 940 Cr. in Q1FY21 (up 3.3% QoQ) while PPOP grew 7.5% YoY/up 3.8% QoQ to INR 637 Cr, led by increase in asset under management. Provisions stood at INR 56 Cr. in Q1FY21 versus INR 557 Cr. in Q4FY20 (down ~90% QoQ) and INR 110 Cr. in Q1FY20 (down ~49% YoY)...
Axis Direct downgraded Cholamandalam Investment & Finance Company Ltd. to Hold with a price target of 216.0 on 03 Aug, 2020.
Edelweiss
Cholamandalam Investment and Finance Company (CIFC) is primarily a vehicle financing (VF) non-banking financial company (73% of AUM) with overall assets under management of INR 60,549 crore
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Cholamandalam Invest.. has an average target of 241.00 from 7 brokers.
Axis Direct
Cholamandalam Investment and Finance Company Ltd (CIFC) earnings performance in Q4FY20 was impacted by the one-time provisioning impact of Rs 5.04bn on Covid19 and subsequent macro related provisions resulting in 85/89% YoY/QoQ dip in PAT.
Number of FIIs/FPIs holding stock fell by 7 to 236 in Jun 2020 qtr.
HDFC Securities
Maintain BUY with a TP of Rs 225 (2.0x FY22E ABV). CIFCs operating performance was a tad below our estimates, while earnings were considerably lower as CIFC made significant proactive provisions (Rs 5.0bn, 83bps of AUMs). Weve lowered our earnings to factor in (1) higher provisions, given that 76% of the book is under moratorium, and (2) slower growth. Nevertheless, CIFC remains our top NBFC pick, given (1) its strong liquidity and funding profile, (2) superior historical asset quality trends and (3) diversified portfolio.
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Cholamandalam Investment & Finance Company Ltd. is trading above it's 150 day SMA of 218.8
Prabhudas Lilladhar
anticipation of increased LGDs for stage 3 assets (current Stage 3 at 3.8%) falling under morat, similar percentage expected in round 2; (b)Rs2.5bn (c)steep 24%QoQ decline in disbursements led by 21%QoQ vehicle finance...
Cholamandalam Investment & Finance Company Ltd. has gained 46.75% in the last 3 Months
Motilal Oswal
4 June 2020 CIFCs 4QFY20 PAT declined 85% YoY to INR427m (88% miss), weighed by an 8% operating profit miss and coupled with higher-than-expected provisions. ~76% of CIFCs customers have been granted moratorium. Hence, AUM was flat QoQ (up 12% YoY) at INR606b. This, coupled with lower assignment income (INR330m v/s est. INR660m), caused the 7% miss on total income v/s our estimates. Hence, the company is comfortable to meet all fixed obligations up to Sep20 without availing moratorium from its lenders. The GNPL ratio increased 30bp QoQ to 3.8%. This is slightly negative given that the 4Q is typically a strong season and the company granted moratorium to customers in Mar20. Some customers who were overdue on 29 moratorium have cleared EMIs for 1-2 months. Also, among non- moratorium customers, the slippage rate into higher buckets has been lower. However, not many moratorium customers are paying dues.
Axis Direct downgraded Cholamandalam Investment & Finance Company Ltd. to Hold with a price target of 216.0 on 03 Aug, 2020.
HDFC Securities
3QFY20 does little to change our thesis on CIFC and it remains our top pick in the NBFC space. CIFC has benefited from the polarisation in the space, due to its diversification across products and geographies and its ability to access funds. While GS-III assets have seen a sustained uptick (due to extrinsic factors) and opex growth has been elevated, CIFC's performance on these fronts is within acceptable bounds. 3QFY20 saw AUM growth slow, NIMs improve and asset quality deteriorate slightly. Pre-tax earnings were in line with estimates while tax expense was lower. Maintain BUY (TP of Rs 412 (3.2xFY22 E ABV of Rs 128)).
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Cholamandalam Investment & Finance Company Ltd. is trading below it's 200 day SMA of 240.9
Motilal Oswal
The quarter was characterized by lower AUM growth and an increase in the GNPL ratio. While LAP AUM growth has been steady at 16-17% YoY, During the quarter, CIFC assigned ~INR7b worth of vehicle finance loans. As loan growth slowed down and the company assigned loans worth ~INR10b overall during the quarter, it did not raise capital from other sources. Over the past nine months, CIFC has heavily curtailed its M&HCV; disbursements (due to asset quality pressure). While HCVs accounted for 14% of total AUM, they formed only 6% of fresh disbursements in 9MFY20. Stage 3 PCR declined 250bp QoQ to 33% due to lower eventual credit losses in M&HCVs; compared to other products. Increase in opex in the quarter is on account of higher collection costs and higher growth in low-ticket products like 2Ws. In M&HCVs;, customers have slowly started repaying EMIs in January.
Cholamandalam Investment & Finance Company Ltd. has lost -34.65% in the last 6 Months