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Cholamandalam Investment hits lifetime high

The stock hit new high of Rs 892, has rallied 12% in past three-trading sessions from Rs 796 on April 29, post Q4 results.

Cholamandalam Investment And Finance Company

SI Reporter  |  Mumbai 

Cholamandalam Investment hits lifetime high

(CIFC) has hit its lifetime high of Rs 892 on the National Stock Exchange (NSE), in an otherwise weak market.

In past three-trading sessions, the stock rallied 12% from Rs 796 on April 29, after the company said its net interest margin (NIMs) expanded by 90 basis points to 9.4% in March 2016 quarter (Q4FY16) against 8.0% in the same quarter last year.

The NIM was strengthened by a healthy increase in interest income, reduction in cost of funds and substantial increase in fee & other income.

The company reported a strong 42% year on year (YoY) growth in consolidated net profit at Rs 192 crore for Q4FY16, on back of healthy 34% YoY jump in net income at Rs 603 crore over the previous year quarter. CIFC posted robust disbursement growth of 41% YoY in Q4. Vehicle finance disbursals grew 47% YoY led by used vehicles, refinance and heavy commercial vehicles (HCVs).

“Collections performance improved through the quarter resulting in roll?forward rates in all buckets dropping consistently and improved gross non-performing assets (GNPA) position. The GNPA is 3.53% (at 4 months’ overdue) and net NPA is 2.13%,” CIFC said in a statement.

Religare Institutional Research maintains ‘buy’ rating on the stock with target price of Rs 1,000, given the improvement in margins and decline in operating cost ratios.

At 03:00 pm, the stock was up 4% at Rs 879 on the NSE as compared to 0.33% decline in Nifty 50 index. A combined 302,323 shares changed hands on the counter on the NSE and BSE so far.

First Published: Wed, May 04 2016. 15:02 IST