225.15 15.75 (7.52%)
NSEAug 13, 2020 15:31
The 14 reports from 7 analysts offering long term price targets for Cholamandalam Investment & Finance Company Ltd. have an average target of 241.00. The consensus estimate represents an upside of 7.04% from the last price of 225.15.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-08-03||Cholamandalam Invest..||Axis Direct||201.00||216.00||201.00 (12.01%)||-4.06||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 (11.19%)||10.59||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 (12.01%)||-0.95||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 (14.41%)||26.58||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 (54.85%)||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 (54.85%)||-0.07||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..||Motilal Oswal||145.40||200.00||145.40 (54.85%)||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.
|2020-06-04||Cholamandalam Invest..||Prabhudas Lilladhar||145.40||189.00||145.40 (54.85%)||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...
|2020-02-26||Cholamandalam Invest..||HDFC Securities||314.55||412.00||314.55 (-28.42%)||82.99||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 (-28.42%)||73.22||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 (-32.91%)||82.54||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 (-24.43%)||79.44||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.
|2019-11-07||Cholamandalam Invest..||Motilal Oswal||297.95||350.00||297.95 (-24.43%)||55.45||Buy|
7 November 2019 2QFY20 PAT/PBT grew 0.8%/14% YoY to INR3.1b/INR5.2b (in-line). Company also incurred a one-time tax impact of INR800m on DTA revision under the new tax rate regime. Disbursements grew 7% YoY to INR73.8b (v/s est. 22%), largely driven by muted growth in vehicle finance (5% YoY). In 1HFY20, disbursements grew 14% YoY to INR160b. assigned loans in the vehicle finance book after several quarters (INR8.3b). Core spreads declined 20bp YoY to 6.1% due to 50bp increase in cost of funds to 8.5%. Share of bank funding increased to 53% v/s 47% in the last quarter.
|2019-11-05||Cholamandalam Invest..||Emkay||316.60||325.00||316.60 (-28.89%)||Target met||Buy|
In Q2FY20, CIFC reported weak momentum in disbursement growth for the Vehicle Finance business, which grew ~3.3% yoy to Rs57.9bn, but was down 16.5% qoq. Home Equity disbursements grew ~16.9% yoy to Rs10.6bn (down 3.4% qoq). Although growth is in sync with overall auto industry trends (LCV, MHCV), it has been relatively disappointing compared with Street expectations. Despite weak disbursements, AUM grew ~24.1% yoy and ~3.1% qoq to Rs592.9bn, backed by lower repayments and probable stretch in loan tenures. However, the trend of weak disbursements should gradually be reflected in AUM growth as well....
|2019-07-31||Cholamandalam Invest..||HDFC Securities||259.65||372.00||259.65 (-13.29%)||Buy|
Growing polarization in the NBFC space (stemming from better parentage and access to funds) has enabled CIFC to sustainably outperform peers across operating metrics. Diversification across products and geographies along with superior underwriting practices and focus on collections pave the way for sustained outperformance. However, with deteriorating macros, asset quality (across asset financiers) will be watched. Yet again, CIFC outperformed across operational parameters, amidst an increasingly tough economic environment. Maintain BUY with a TP of Rs 372 (3.5x Jun-21E ABV).
|2019-05-02||Cholamandalam Invest..||Dolat Capital||1337.95||1550.00||1337.95 (-83.17%)||Target met||Buy|
Market Share Gains in CV, HE Healthy; At 3x, Maintain Accumulate The NBFC reported a strong quarter, with a NII growth of 21% YoY, lower credit costs and improved asset quality. Its opex increased due to investments in 121 new branches. This is expected to improve traction in asset growth next year. We have factored an asset growth of CAGR 18% (reduced our asset growth estimates marginally by 200 bps against vehicles), driven by 15% and 18% in vehicles and LAP, respectively. The PAT is likely to grow at a CAGR 25% over FY19-21E and the ROA is expected to...
|2019-04-30||Cholamandalam Invest..||HDFC Securities||1387.00||1671.00||1387.00 (-83.77%)||Pre-Bonus/|
Despite the liquidity squeeze on NBFCs, upcountry macro sluggishness and weak headline auto vols, CIFC has grown its Vehicle Finance portfolio and improved asset quality via superior field practices and underwriting. Strong parentage gives it steady access to funds. The sustained improvement in HE asset quality (aided by SARFAESI) is an additional positive. We believe CIFC deserves a slightly higher valuation multiple (3.5x vs. 3.25x). CIFC outperformed peers on growth and asset quality in 4QFY19, meriting an upgrade in our valuation multiple. Maintain BUY with a TP of Rs 1,671 (3.5x Mar-21E ABV).
|2019-03-28||Cholamandalam Invest..||HDFC Securities||1450.00||1681.00||1450.00 (-84.47%)||Pre-Bonus/|
Maintain BUY with a TP of Rs 1681 (3.25x FY21E ABV of Rs 517). In the midst of the systemic crisis of confidence faced by NBFCs, we expected polarization to increase, resulting in increasingly divergent performance, with good players getting better at the expense of others. CIFC, with its strong parentage, granular and diversified B/S profile has emerged stronger.
|2019-02-01||Cholamandalam Invest..||Prabhudas Lilladhar||1215.50||1562.00||1215.50 (-81.48%)||Pre-Bonus/|
While consolidation times have paved way for proliferation of quality LAP, pacing up of SARFAESI resolutions, increased recoveries and subsiding balance transfer cases would determine consistent 15% consistent growth over FY20-21E. The high growth exhibited in Q3 might not repeat ahead and we build in adequate conservatism into our 3-year estimates. Said that, CIFC has sufficient levers in place to stack up overall RoAs to 2.3-2.4% over FY2021E backed by 17-18% AUM traction, 7.4-7.5% NIMs, 0.8-1.1% credit costs. We reiterate our positive stance and believe CIFC is one of the better placed auto financiers sailing successfully across credit and liquidity cycles with clear...
|2019-01-31||Cholamandalam Invest..||HDFC Securities||1170.05||1611.00||1170.05 (-80.76%)||Pre-Bonus/|
Maintain BUY with TP of Rs 1,611 (3.25xDec-20E ABV of Rs 496). CIFC's 3Q performance is commendable, given the adversities faced by NBFCs in the qtr. Healthy growth, led by an uptick in disbursals and a tight leash on asset quality are the key highlights. VF disbursals were sequentially higher (even as OEM sales were muted) and asset quality improved further. Pre-tax RoA at ~3.4% was lower due to NIM compression and higher provisions