Cholamandalam Investment and Finance Company Limited (CIFC) hit a 52-week high of Rs 749.10 on April 8th, gaining more than 9% intraday. The firm’s results for the March quarter and the fiscal year ending in FY22 has been disclosed.
Cholamandalam Investment and Finance Company Limited is a company that provides financial services. Customers can use the company’s services for auto financing, home equity loans, investment advising, stock broking, and other financial services.
Cholamandalam Investment and Finance Company’s disbursements during the fourth quarter of FY22 increased by 58 percent to Rs 12,718 crore, up from Rs 8,071 crore in the fourth quarter of FY21. The firm increased its revenue by 36% in FY22, hitting Rs 35,489 crore from Rs 26,043 crore.
In Q4FY22, disbursements in the auto finance industry increased by 43% to over Rs 8,785 crore, and by 26% in FY22 to around Rs 25,439 crore.
In Q4FY22, loan against property business disbursements increased by 57% to about Rs 1,870 crore, and in FY22, they increased by 53% to roughly Rs 5,536 crore.
The newly formed venture made payments of Rs 1,514 crore in Q4FY22 and Rs 2,618 crore in FY22.
In Q4, the firm reported higher-than-expected disbursements, good collection efficiency of 138 percent, and strong liquidity at the conclusion of the quarter.
Long-term investors have profited handsomely from this stock, which has increased by almost 2000% in the previous 10 years.
Morgan Stanley Research has a target price of Rs 775 per share and an equal weight rating on the company. In Q4, disbursements exceeded expectations, collection efficiency was strong (138 percent), and excellent liquidity was maintained at the end of the quarter. The brokerage business is optimistic that the company’s collection efficiency and asset quality would lead to a higher QoQ. The stock was rated by Morgan Stanley as a “buy,” with a target price of Rs 820 per share.
