Cholamandalam Investment and Finance Company Limited
Chola is the financial services arm of Murugappa Group. Chola operates from over 534 branches across India with assets under management above INR 25,000 Crores. The subsidiaries of Cholamandalam include Cholamandalam Securities Limited (CSEC) and Cholamandalam Distribution Services Limited (CDSL).
The company has growing client networks over 7.5 lakh happy customers, as it offers Vehicle Loans, Loan against property, Home Loans, SME Loan, Rural and Agri Loan, Wealth management, and Securities.
Cholamandalam Investment and Finance Company Fundamentals
The stock is trading at 3.5 times the Book Value (BV) and at PE of 21. Return on Invested capital is 40%. Consistent profit growth is around 60% over 5 years. Price to earning Growth (PEG) value of 0.35 makes it super attractive with respect to valuations.
Cholamandalam Investment and Finance Company Technicals
The Stock price has created Double Bottom Pattern in Daily and Weekly Chart. On 12th Feb 2016 stock witnessed heavy buying at round number of 700 and was able to make new 52 weeks high when peers are making new 52 week low. Also, the price was not able to break weekly and daily Trend Lines which is a good sign of strength.
If you are the believer of more public participation in Indian equity market over the years, you can start accumulating this gem which is reasonably valued. While deciding how much allocation should be done in your portfolio, keep in mind that, Rs.600 is acting as a support zone for the stock price.
Information presented in the above article is available in public domain and it should not be treated as “Research Report”
Registration Status: I am not a SEBI registered Research Analyst.
As per SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 and clarifications provided by SEBI “Any person who makes
“Any person who makes the recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.”
Disclaimer: I do not hold any position in CHOLA.