Cholamandalam Investment Rallies 9% As Q3 Net Income, Revenue Beat

Shares of Cholamandalam Investment and Finance Co. advanced 7.08% as of 10:02 am, to Rs 757 apiece in trade on Wednesday after the third-quarter net income and revenue beat analysts’ estimates.

Cholamandalam’s net profit rose 31% to Rs 684 crore as compared to the same quarter of the previous financial year. The consensus analyst estimates pooled by Bloomberg pegged the net profit at Rs 589 crore for the given period.

Company’s net interest income was 22% higher annually at Rs 1,832 crore in the said quarter of the ongoing fiscal. Additionally, the company’s asset quality improved on a sequential basis in the third-quarter.

Cholamandalam Investment and Finance Co. Q3

  • Net interest income up 22% at Rs 1,832 crore (YoY)
  • Net profit up 31% at Rs 684 crore (YoY) [Bloomberg Estimates: Rs 589 crore]
  • GNPA at 5.37% vs 5.84% (QoQ)
  • NNPA at 3.76% vs 4.07% (QoQ)

The stock rose as much as 9.53% intraday, falling the most in over seventeen months since Aug. 2, 2021.

Total traded volume stood at 13 times its 30-day average. The relative strength index at 14 implies that the stock maybe oversold.

Out of the 35 analysts tracking the company, 27 maintain a ‘buy’ rating, five recommend a ‘hold’ and three suggest to ‘sell’ the stock.

The return potential as calculated by the consensus of analyst estimates, stand at an upside of 8.8% over the next 12 months.

Source: Exchange filing

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