By CNBCTV18.com Jun 27, 2023 11:06:55 AM IST (Published)
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For expectations of 25-30 percent growth in Assets Under Management (AUM), 2.8-3 percent Cost to Assets, 1-1.1 percent credit costs, 25-30 percent Earnings per Share Compounded Annual Growth Rate (CAGR) and RoA & RoE greater than 2.7 percent and 22 percent respectively, Cholamandalam's valuations caught up too fast and too soon.
However, the company has raised its net profit estimates for financial year 2024 and 2025 by 2 percent and 3 percent respectively.
Citi had initiated coverage on the stock with a buy rating and a price target of Rs 930 in March this year, which it later raised to Rs 1,120 in May.
Shares of Cholamandalam Investment and Finance company are trading little changed at Rs 1,077.45. Out of the 37 analysts that track the stock, 29 have a buy rating, six say hold, while one has a sell recommendation.
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