Cholamandalam Investment Q3 Results Review - Robust AUM Growth Sustained; NIMs Stable: IDBI Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Cholamandalam Investment and Finance Company Ltd.'s sustained robust assets under management growth (at 40% YoY) backed by 40% YoY (9M FY24) growth in disbursements. Management remains optimistic on strong AUM growth going forward albeit growth moderating slightly for next few quarters.Net interest margin remain stable QoQ despite cost of funds rose. We expect benefit of lower interest rate environment on account of fixed rate vehicle finance book. Asset quality improved with GS3 at 2.82% versus 2.96% led by higher write-off.Net interest income grew by 10% QoQ; however pre-provision operating profit grew by 6% QoQ led by higher operating expenses (up 20% QoQ). Profit after tax grew by 5% QoQ led by increase in provisions (up 7% QoQ). We have moved to FY26E and included Rs 20 billion (conversion of non-convertible debentures into Equity).We upgrade to “Buy” from “Hold” with a new target price of Rs.1,450 (earlier Rs.1,150) based on price/book value of 4.1 times FY26E as growth prospects remain strong..Click on the attachment to read the full report:.Byju's To Raise $200 Million Via Rights Issue At Sub-$250 Million Valuation.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cholamandalam Investment Q3 Results Review - Robust AUM Growth Sustained; NIMs Stable: IDBI Capital

Robust AUM growth; disbursements up 40% YoY.

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Cholamandalam Investment Q3 Results Review - Robust AUM Growth Sustained; NIMs Stable: IDBI Capital

Robust AUM growth; disbursements up 40% YoY.

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