Cholamandalam Investment & Finance Company Ltd. share price target

CIFCs 2Q results beat estimates despite the shift to 120DPD ? six quarters ahead of the regulatory deadline. This impacted profits by Rs 536mn (44% of reported PAT) and added Rs 2.7bn (~1%) to GNPA.

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.

4.9bn/2.8bn. However, due to higherthanexpected provisions, net profit came in lower than expectation at Rs 1.1bn. Disbursement growth in vehicle finance and home equity improved to 1216% vs. negative to singledigit growth in many past quarters. The asset...

CIFC Q4FY15 operating results came inline with expectation with NII/ Operating profit at Rs4.5bn and 2.6bn respectively. However aided by lower credit cost at 100bps, as against 160bps for 9MFY15, net profit came in higher at Rs1.35bn as against our estimates of...