Cholamandalam Investment - Growth Trajectory Healthy; Asset Quality Performance Impressive: Motilal Oswal
A man holds two thousand and five hundred Indian rupee banknotes in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Cholamandalam Investment - Growth Trajectory Healthy; Asset Quality Performance Impressive: Motilal Oswal

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.

Motilal Oswal Report

Contrary to our expectations, Cholamandalam Investment and Finance Company Ltd. has seen a quick turnaround in terms of both growth and asset quality.

Disbursement performance has been superior versus peers, while collection efficiency has consistently been 100% plus for the past few months. Macro indicators, such as e-way bills, also point to a strong recovery.

The company’s strategy to focus less on low-yielding products (such as heavy commercial vehicle financing) compared with high-yielding ones (such as tractor finance) has been fruitful.

With the cost of funds continuing to decline, coupled with the trimming of excess balance sheet liquidity, margins are poised to expand further going forward.

Click on the attachment to read the full report:

Motilal Oswal Cholamandalam Company Update.pdf

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