Buy Cholamandalam Finance, target price Rs 490: Edelweiss

Buy Cholamandalam Finance, target price Rs 490:  Edelweiss

Edelweiss has buy call on Cholamandalam Finance with a target price of Rs 490. The current market price of Cholamandalam Investment & Finance Company is Rs 443.45.

Cholamandalam Investment & Finance Company Ltd., incorporated in the year 1978, is a Large Cap company (having a market cap of Rs 36314.48 Crore) operating in NBFC sector.

For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 2454.01 Crore, up 15.45 % from last quarter Sales of Rs 2125.55 Crore and up 10.93 % from last year same quarter Sales of Rs 2212.27 Crore. Company reported net profit after tax of Rs 434.62 Crore in latest quarter.

Investment Rationale
Chola Fin has seen a stupendous rally and has been one of the outperformers in the financial space. Recent movement suggests that the bullish momentum is likely to continue as long as the stock trades above Rs 425.

Promoter/FII Holdings
Promoters held 51.6 per cent stake in the company as of Sept 30, 2020, while FIIs held 11.3 per cent, DIIs 29.1 per cent and public and others 7.9 per cent.

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