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Cholamandalam Investment - Best-Placed Among Peers To Navigate Sectoral Headwinds: Nirmal Bang

Cholamandalam Investment - Best Placed Among Peers To Navigate Sectoral Headwinds: Nirmal Bang

<div class="paragraphs"><p>A man holds a two thousand Indian rupee banknote and a five hundred banknote. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
A man holds a two thousand Indian rupee banknote and a five hundred banknote. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Non banking financial companies faced multiple headwinds starting with funding crunch, Covid-19 outbreak and changing regulations. Despite these challenges, Cholamandalam Investment and Finance Company Ltd. has delivered on growth, quality and profitability by carefully calibrating its multi-product strategy, robust under-writing practices and diversified geographical presence.

Strong parentage led to reduction in the cost of funds by 183 basis points to 6.9% (FY19-Q2 FY22). The assets under management increased at a compound annual growth rate of 10.7% (FY19-Q2 FY22) and earnings at 21% CAGR (FY19-22E).

Cholamandalam Investment's collection efficiency remained strong at 115%/116% in September 2021/October 2021, slightly assuaging our concerns on asset quality (Stage-III assets at 6.2%, restructured book at 6.8% as on Q2 FY22).

Click on the attachment to read the full report:

Nirmal Bang Cholamandalam Investment and Finance Co-Company Update-30 Dec 2021.pdf

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