Cholamandalam Investment shares rise after company buys Rs 735 crore property from DLF IT Offices Chennai

Shares of Cholamandalam Investment and Finance Company soared in trade on March 14, snapping a two-session losing streak. At around 12:16 p.m., shares of NBFC traded 1.67 per cent, or Rs 17.55, higher at Rs 1065.55 apiece. 

The upward movement in the stock can be attributed to the company purchasing a property from DLF IT Offices Chennai Private Limited.

On Wednesday, after market hours, in a regulatory filing, Cholamandalam Investment and Finance informed that the "company has purchased an immovable property today, from DLF IT Offices Chennai Private Limited admeasuring 4.67 acres of land situated at ...Guindy, Chennai by executing and registering a sale deed".

The deal value is Rs 735 crore, it added.

DLF has sold this land to monetise. The realty firm has a good presence in the Chennai market and is developing residential and commercial properties in the city.

Global Brokerage Jefferies has maintained 'buy' and cut the target to Rs 1,400 from Rs 1,500 apiece. 

As per the brokerage, the company should deliver healthy growth, despite a softer commercial vehicle loan growth outlook. Further, the repricing of auto loans may offset the higher cost of funds and support steady Net Interest Margins (NIM).

Moreover, Jefferies sees valuations as reasonable post-pullback.

Cholamandalam Investment and Finance Company share price: Past performance 

In a year, shares of Cholamandalam Investment and Finance Company have given returns of over 43 per cent against Nifty50's rise of over 29 per cent. 

Cholamandalam Investment and Finance Company Limited (Chola) is the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, loan against property, SME loans, secured business personal loans (SBPL), consumer & small enterprises loans (CSEL), and a variety of other financial services to customers.

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