Cholamandalam Investment shares hit all-time high; what should be your strategy?

Cholamandalam Investment share price NSE: Shares of Cholamandalam Investment and Finance Company on Thursday (May 4, 2023) zoomed over 9 per cent to touch a new life high of Rs 970 on the NSE. The stock jumped a day after the Murugappa Group firm reported a 23.6 per cent rise in its standalone profit at Rs 852.84 crore for the quarter that ended March 2023. The counter opened at Rs 920 on NSE. At 11:40 am, the counter quoted Rs 949.95, up by 7.15 per cent or Rs 63.35.

Cholamandalam Investment share target price: Should you buy, sell or hold? 

JP Morgan has double upgraded Cholamandalam Investment to overweight from underweight and has revised its target to Rs 1020 from Rs 700. Here are other calls by brokerage firms. 

The company had registered a standalone profit of Rs 689.58 crore during the corresponding quarter of the previous fiscal. The standalone total income for the quarter ending March 31, 2023, went up to Rs 3,794.26 crore from Rs 2,631.75 crore registered in the same quarter of last year. For the financial year ending March 31, 2023, the standalone total income grew to Rs 12,977.98 crore from Rs 10,138.77 crore registered in the same period last year.

In a statement, the company said the disbursements during the quarter ending March 31, 2023, grew by 65 per cent to Rs 21,020 crore while for the year ending March 31, 2023, it grew to Rs 66,532 crore up 87 per cent over the same period of last year.

"Chola has delivered the best-ever disbursals, collections and profitability in Q4 FY23. Chola has gained market share across the product segment in VF and other business units. " the company added.

Leveraging the industry growth, Chola has improved market share across product segments, it said. Retail assets under management (AUM) of non-banking finance companies are expected to grow at 12-14 per cent in FY2024 after a strong rebound in fiscal year 2023, the company further said.

Cholamandalam Investment dividend 

Cholamandalam Investment's board recommended a final dividend of Rs 0.70 per share, translating to a 35 per cent dividend payout. On the company's maiden public NCD issue, the company said, "Our maiden public issue of secured, rated, redeemable NCDs for which the prospectus was filed in Q4 of FY23 amounting to Rs 1,000 crore, was oversubscribed by 2.6 times within the first three days of the issue."

As on March 31, 2023, the Capital Adequacy Ratio was at 17.13 per cent as against the regulatory requirement of 15 per cent. Tier I capital was at 14.78 per cent and Tier II Capital was at 2.35 per cent, the statement said.

Cholamandalam Investment share price history

Cholamandalam Investment shares have zoomed nearly 33 per cent in the last year, a period in which the Nifty 50 index has gained around 9 per cent. 

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