Shares of Cholamandalam Investment and Finance Co. gained the most in 17 months since Aug. 2, 2021, after its third-quarter profit beat analysts' estimates.
Cholamandalam's third-quarter net profit rose 31% to Rs 684 crore, according to its exchange filing. The consensus analyst estimates pooled by Bloomberg pegged the net profit at Rs 589 crore for the given period.
The company's net interest income was 22% higher annually at Rs 1,832 crore in the said quarter of the ongoing fiscal. Additionally, the company's asset quality improved on a sequential basis in the third quarter.
Cholamandalam Investment and Finance Co. Q3
Net interest income is up 22% at Rs 1,832 crore (YoY).
Net profit up 31% at Rs 684 crore (YoY) [Bloomberg Estimates: Rs 589 crore]
GNPA at 5.37% vs. 5.84% (QoQ)
NNPA at 3.76% vs. 4.07% (QoQ)
Shares gained 7.08% as of 10:02 am, to Rs 757 apiece. The stock rose as much as 9.53% intraday, gaining the most in over seventeen months since Aug. 2, 2021.
Total traded volume stood at 13 times its 30-day average. The relative strength index at 14 implies that the stock may be oversold.
Out of the 35 analysts tracking the company, 27 maintain a 'buy' rating, five recommend a 'hold,' and three suggest to 'sell' the stock.
The return potential, as calculated by the consensus of analyst estimates, stands at an upside of 8.8% over the next 12 months.
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