Range
Stop Loss
Target
Cholamandalam Investment (NSE Cash) - BUY
1065 - 1075
975
1230
Weekly Chart
Technical Evidences
Since last few months, the stock has been
oscillating rangebound.
As seen in the adjacent chart, prices
have given breakout from the falling
trendline resistance.
The ‘RSI Smoothened’ oscillator on
weekly chart have given positive
crossover with its average, indicating
probability of a positive momentum in
near term.
The ‘Parabolic SAR’ on the daily as well
as weekly chart is in ‘Buy’ mode and the
short and medium term moving
averages are also indicating strength in
the counter.
Thus, we advise traders to buy the stock
from current level to a decline up to
`1065 for a target of ` 1230 in coming
three months. A stop loss can be placed
at ` 975.
Source: Falcon ( Chart time: 09:20 IST on 06/02/2017 )
Ruchit Jain
022-3935 7600 Extn: 6554
April 11, 2017
Stock Info
Cholamandalam Investment & Finance
Cholamandalam Investment & Finance Company (CIFC), part of the Murugappa
Sector
NBFC
Group is one of the dominant players in the Vehicle Finance business with a
market share of ~9%.
Market cap
16722
Balanced portfolio, without much concentration risk: While CIFC is largely known
as a Vehicle Financing NBFC, over the years it has diversified and ramped up its
Beta
0.3
business in Loan Against Property. Vehicle financing segment which was ~73% of
its AUM in FY2012 had been brought down to 67% during FY2016, while the
52 week high/low
1245/738
share of LAP has been raised to 30% v/s 23% during the same period
Expect AUM CAGR of 16% over FY2016-19: CIFC’s AUM has grown by an
Avg. Daily Volume
79,100
impressive 26.7% over FY2011-16. We believe that Cholamandalam can deliver
16% CAGR in AUM over FY2016-19, backed by incremental demand for CV.
Face Value (`)
10
Asset quality concerns relatively low v/s other NBFCs: From the peak 3.4%
(FY14), NPA declined to
1.3% (FY16) owing to strengthening the credit
underwriting and monitoring process. In 3QFY17, NPA has increased to 1.82%.
we don’t expect material deterioration in the asset quality in the medium term.
Shareholding Pattern (%)
Outlook & Valuation, Cholmandalm is best placed to play the revival in CV cycle
in India. At the CMP the stock is trading at 3.2x its FY19 ABV. We recommend
Promoters
53.0
BUY on the stock with a target price of Rs 1230.
MF / Banks / Indian Fls
16.7
Company
NII
NIM
PAT
EPS
Adj BV
ROE ROA
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
FII / NRIs / OCBs
17.8
FY2018E
2317
6.3
838
53.6
265
18.3
2.5
19.8
4.0
Indian Public / Others
12.5
FY2019E
2711
6.3
1008
64.6
313
18.9
2.6
16.4
3.4
Siddharth Purohit
022-3935 7600 Extn: 6872
April 11, 2017
Research Team Tel: 022 - 3935 7600
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and Metropolitan
Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel
Broking Private Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number INH000000164. Angel or its
associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities Market. Angel or its associates/analyst has not received any
compensation / managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed
as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the
securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an
investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's
fundamentals and, as such, may not match with a report on a company's fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our
website to evaluate the contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it
is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not
be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Limited has not
independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy,
contents or data contained within this document. While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information.
Disclosure of Interest Statement
Cholamandalam Investment
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
April 11, 2017
