CLSA has downgraded its rating on shares of Cholamandalam Investment and Finance Company to ‘outperform’ from ‘buy’ with a target price of Rs 825, implying around a 15 percent upside from the current market price.
At 10:22 am, the stock was trading at Rs 720.2, down nearly 1 percent, on BSE.
The global brokerage firm believes that the upside in the company’s share price is limited after the significant outperformance of the stock.
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New initiatives will aid a rebound in growth for the company, which has prompted CLSA to lift its profit estimates by 1-4 percent for FY23-24.
CLSA believes that vehicle finance recovery story continues to play out and said that barring two-wheelers and tractors, all auto products are seeing sequential a pick-up in industry volume.
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Shares of Cholamandalam Investment and Finance Company are about 2.5 percent away from a 52-week high of Rs 739.8.
The stock has gained close to 150 percent in the last three years. YTD, the scrip has risen 38 percent.
Earlier this month, Morgan Stanley had initiated its coverage on Cholamandalam Investment and Finance stock with a target price of Rs 625.
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