Cholamandalam Investment & Finance: Good quarter; strong commentary

研报英文原文证据摘录

Cholamandalam Investment & Finance: Good quarter; strong commentary

Global Research

28 July 2026ab

First Read

EquitiesCholamandalam Investment & Finance

Good quarter; strong commentary India

Diversified Financial

12-month rating Buy

PAT beat on better NII and fee income

Chola reported AUM growth of 21.6% YoY, in-line with UBSe supported by strong 12m price target Rs2,100.00

disbursements (+22% YoY). Vehicle and new businesses led the disbursement Prior : Rs2,010

momentum. LAP and HL saw slightly weaker disbursement growth as company changed

Price (28 Jul 2026) Rs1,752.5

disbursement recognition method. NII was up 27% YoY (2% beat) with stable margins

QoQ and higher non-interest income led to PPOP growth of 30% YoY, 4% beat. RIC: CHLA.BO BBG: CIFC IB

Provisions were up 5% YoY and marginally ahead of UBSe and came at 1.5% of average Trading data and key metrics

assets. Slippages into Stage2/3 went up to 3.8% (vs -0.2% in Q4) but largely in-line with

52-wk range Rs1,854.55-1,353.85

seasonality. PAT of Rs16.5bn was up 46% YoY. Commentary was strong as company

Market cap. Rs1,440b/US$15.0b

expects growth momentum to sustain in 2Q and is confident of 23% AUM growth in

Shares o/s 822m (ORD)

FY27. Company also expects credit cost to see moderation through the year though

there could be risks from West Asia crisis and El Nino. We upgrade our AUM CAGR to Free float 30%

22% vs 21% earlier for FY26-28E, leading to 4-5% EPS upgrade. We forecast Avg. daily volume ('000) 1,673

30% EPS CAGR over FY26-28E. We continue to like Chola as a leading franchise Avg. daily value (m) Rs2,761.9

amongst NBFCs. We raise PT to Rs2,100 implying 20x FY28E EPS, marginally higher than Common s/h equity (03/26E) Rs287b

our target multiple for Bajaj Finance. P/BV (03/26E) 5.1x

Tier 1 ratio 15%