Cholamandalam Investment to acquire majority stake in freight data solutions provider White Data Systems
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.