Cholamandalam Investment expects 30% asset growth this year
Global brokerage firm, Nomura, initiated coverage on the stock with a ‘Reduce’ rating due to several factors such as valuation concerns, moderating growth, increasing cost of funds and lower profitability expectations. The global brokerage house has set a target price of ₹1,000 per share.
Chennai-based financial services company, Cholamandalam Investment and Finance, expects asset growth to stabilise around 30% year-on-year (YoY) for the current financial year.
Arul Selvan, President and CFO of the company pointed out that disbursals may not grow at 30-40% in January-March period due to the low base effect.
He sees growth across segments like passenger vehicles (PV) and construction equipment.
Vehicle finance, in Cholamandalam Investment and Finance, has a large gamut of products right from heavy vehicles, to light vehicles, to mini-light vehicles to tractors, to two-wheelers, to passenger cars and construction equipment.
Last month, Nomura initiated coverage on the stock with a ‘Reduce’ rating due to several factors such as valuation concerns, moderating growth, increasing cost of funds and lower profitability expectations.
The global brokerage house has a target price of ₹1,000 apiece on the share.
The current market capitalisation of the company is ₹89,644.85 crore.
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