Cholamandalam Investment and Finance Co. shares gained around 8 percent today and currently trade at Rs 840. The scrip marked its 52-week high figure today at a price of Rs 844.90.
Having a purview of one year, the stock has been able to provide returns of about 20 percent to its stakeholders. Moving ahead with a time horizon of five years, the stock has given its holders multibagger returns of 175 percent. It means if someone would have invested Rs 1,00,000 in the stock, it would have converted to Rs 2,75,000 within a period of five years.
This week, the company, through a filing, provided business updates. Some of which include the Disbursements which stood at Rs 21,020 crores for Q4FY23 as compared to Rs 12,718 Crores in Q4FY22 showing a growth of 65%.
Cholamandalam Investment and Finance Co Ltd, operating solely in India, serves as the financial services arm of the Murugappa Group. Its subsidiaries include Cholamandalam Securities Limited (CSEC) and Cholamandalam Home Finance Limited (CHFL). The company’s operating segments include Vehicle finance loans, Home Loans, etc. The company is also engaged in offering investment advisory and stockbroking services.
Having a quick glance at the financials, there has been a bullish trend in the company’s revenue and net profit numbers. Revenues increased from Rs 3,017 crores in Q2 to Rs 3,356 crores in Q3. Net profits moved from Rs 566 crores in Q2 to Rs 688 crores in Q3.
With some contrasting views, the profitability ratios such as the ROE and ROCE have somewhat remained at the same levels. ROE moved from 17.16 percent in FY20-21 to 20.29 percent in FY21-22. ROCE, on the other hand, moved down slightly from 9.7 percent during FY20-21 to 9.34 percent in FY21-22.
As per the quarter ending December 2022, promoters hold a 51.49 percent stake in the company. FIIs, having a positive outlook, increased their stake from 18.68 percent in Q2 to 19.37 percent in Q3.
Written by Amit Madnani
