568.90 -11.40 (-1.96%)
3.3M NSE+BSE Volume
NSEMay 07, 2021 03:31 PM
The 16 reports from 7 analysts offering long term price targets for Cholamandalam Investment & Finance Company Ltd. have an average target of 473.00. The consensus estimate represents a downside of -16.86% from the last price of 568.90.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2021-03-25||Cholamandalam Invest.. +||Prabhudas Lilladhar||555.30||619.00||555.30 (2.45%)||8.81||Buy|
Upgrade MMFS to HOLD (earlier REDUCE) on higher EPS expansion Our channel checks indicate that commercial vehicle (CV) finance business is expected to accelerate on the back of healthy demand conditions, anticipated improvement in supply chain and resilient balance sheets of financiers. They suggest (a) disbursements stand 80% of last year levels; ECLGS provides some boost (b) regulatory dispensations (restructuring/ ECLGS) mask true asset quality picture, but CV financiers' balance sheets remain resilient (c) new business asset quality intact, stress in seasoned...
|2021-03-19||Cholamandalam Invest.. +||Motilal Oswal||570.40||640.00||570.40 (-0.26%)||12.50||Buy|
|2021-02-02||Cholamandalam Invest.. +||Axis Direct||439.10||505.00||439.10 (29.56%)||Target met||Buy|
|2021-02-02||Cholamandalam Invest.. +||Edelweiss||439.10||511.00||439.10 (29.56%)||Target met||Buy|
|2021-02-01||Cholamandalam Invest.. +||Prabhudas Lilladhar||459.85||501.00||459.85 (23.71%)||Target met||Buy|
our FY21 still factors sufficient conservatism in the nature of (a) incremental mere 2% AUM growth (but 16% YoY) in Q4FY21 with normalization coming through post festive demand, (b) 4.6% NPA (c) modest margins at (6.6%). CIFC's continued focus on right product positioning and broad-level strategy on creating financing ecosystem make it a constructive long term bet. 2.7% RoA and 17%+ RoE by FY22 only corroborates our confidence in the business model and hence we reiterate BUY recommendation on the stock with...
|2021-02-01||Cholamandalam Invest.. +||Nirmal Bang Institutional||442.95||494.00||442.95 (28.43%)||Target met||Buy|
Nirmal Bang Institutional
Cholamandalam Investment & Finance Co. (CIFC) reported 6% YoY growth in disbursements, largely contributed by Tractors and Used Vehicles. NII at Rs25bn is 4% ahead of our estimate due to 80bps expansion in NIM. This was aided by 117bps reduction in the cost of funds to 7.4% and 41bps expansion in yields to 14.7%. Operating profit grew by 9% YoY due to low opex (cost-toincome ratio down 12ppt at 27%). PAT at Rs4bn is 15% below our estimate due to high credit cost. Stage 3 PCR at 43.5% was up 10.5ppt YoY while the overall provision at 3.1% was up 124bps YoY. Restructuring at ~2% of advances (Rs13.2bn) was well within the guidance of 1-5% while advances under ECLGS were high at Rs15bn (2.3% of advances). Collection efficiency improved MoM (103-105%) and the management exuded confidence that Covid provisions worth...
|2020-11-02||Cholamandalam Invest.. +||Axis Direct||293.05||309.00||293.05 (94.13%)||Target met||Buy|
|2020-10-31||Cholamandalam Invest.. +||HDFC Securities||273.25||319.00||273.25 (108.20%)||Target met||Buy|
Maintain BUY with a revised target price of Rs 319. CIFCs 2QFY21 PPOP was significantly ahead of our estimates, aided by strong margin expansion and controlled operating expenditure growth. The management prudently chose to insulate the balance sheet by creating further COVID-19 related provisions, which is always welcome. Business traction improved as disbursals reached ~88% of 2QFY20 levels and YoY AUM growth accelerated slightly. Even as CIFC witnessed a sustained improvement in collection efficiency, which is heartening, we conservatively factor in a rise in GNPAs in FY21E. We have upgraded our earnings estimates on the back of strong operating performance, as we build in an improvement in margins and operating efficiency. CIFC remains our top pick amongst the NBFCs within our coverage due to its demonstrated superior performance on multiple business parameters
|2020-08-03||Cholamandalam Invest.. +||Axis Direct||201.00||216.00||201.00 (183.03%)||Target met||Hold|
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%
|2020-08-01||Cholamandalam Invest.. +||HDFC Securities||202.50||249.00||202.50 (180.94%)||Target met||Buy|
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
|2020-08-01||Cholamandalam Invest.. +||KRChoksey||201.00||223.00||201.00 (183.03%)||Target met||Accumulate|
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)...
|2020-06-24||Cholamandalam Invest.. +||Edelweiss||196.80||285.00||196.80 (189.08%)||Target met||Buy|
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
|2020-06-05||Cholamandalam Invest.. +||Axis Direct||145.40||176.00||145.40 (291.27%)||Target met||Buy|
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.
|2020-06-04||Cholamandalam Invest.. +||HDFC Securities||145.40||225.00||145.40 (291.27%)||Target met||Buy|
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.
|2020-06-04||Cholamandalam Invest.. +||Prabhudas Lilladhar||145.40||189.00||145.40 (291.27%)||Target met||Accumulate|
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...
|2020-06-04||Cholamandalam Invest.. +||Motilal Oswal||145.40||200.00||145.40 (291.27%)||Target met||Buy|
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.
|2020-02-26||Cholamandalam Invest.. +||HDFC Securities||314.55||412.00||314.55 (80.86%)||Target met||Buy|
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)).
|2020-02-26||Cholamandalam Invest.. +||Motilal Oswal||314.55||390.00||314.55 (80.86%)||Target met||Buy|
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.
|2020-02-10||Cholamandalam Invest.. +||Axis Direct||335.60||411.00||335.60 (69.52%)||Target met||Buy|
Cholamandalam Investment and Finance Company Ltd (CIFC) is a well diversified play in secured asset segments such as vehicle finance and home equity (loan against property). Diversification across segments/geographies and better access to funds (via parentage and strong credit practices) is enabling
|2019-11-07||Cholamandalam Invest.. +||HDFC Securities||297.95||404.00||297.95 (90.94%)||Buy|
2QFY20 is mostly in line with our positive thesis on CIFC. Diversification across segments/geographies and better access to funds (via parentage and strong credit practices) is enabling it to withstand sectoral headwinds. Even though VF GNPAs have risen, they remain best in class and nowhere near alarming. While we have increased our opex estimates, in view of the faster opex growth over the past few qtrs, current efficiency levels are acceptable. The leadership clarity is welcome. CIFC remains our top-pick amongst asset financiers. 2QFY20 saw disbursals dip QoQ (albeit up ~7% YoY), resilient AUM growth (~24%) and slight NIM expansion at CIFC. The bump-up in opex and GS-III were disappointing but excusable. Maintain BUY. Our TP is Rs 404 at 3.5x Sept-21E ABV.