News

Motilal Oswal's research report on Cholamandalam Investment and Finance

Cholamandalam Inv. & Finance’s (CIFC) 4QFY25 PAT grew ~20% YoY to INR12.7b (in line). FY25 PAT grew ~24% YoY to INR42.6b. 4Q NII grew ~30% YoY to ~INR30.6b (in line). Other income grew ~26% YoY to ~INR7b (~9% beat), primarily driven by an upfront assignment income of ~INR940m. Opex rose ~11% YoY to ~INR14.3b (~9% lower than MOFSLe) and the costincome ratio declined ~2pp QoQ to ~38% (PQ: ~40% and PY: ~44%). PPoP grew ~43% YoY to INR23.3b (~7% beat). Management guided for an opex-toassets ratio of ~3.0%-3.1% in FY26, given that the opex will remain elevated, driven by investments in branch expansions of the gold loan business. Yields (calc.) declined ~15bp QoQ to ~14.5%, while CoF (calc.) declined ~20bp QoQ to ~7.9%. NIM was stable QoQ at ~6.8%.

Outlook

CIFC will have to utilize its levers on NIM (and fee income) to offset the impact of moderation in AUM growth and elevated opex/credit costs. We estimate RoA/RoE of ~2.7%/21% in FY27. Reiterate BUY with a TP of INR 1,770 (premised on 4x Mar’27E BVPS).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Cholamandalam Inv Finance - 29042025 - moti

Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Sensex Today Jammu Kashmir News Live Canada Election Results Q4 Results 2025 Live Ather Energy IPO GMP India at UN Gold Price HDFC Bank Market Cap Paytm First Games IPL Points Table 2025

Business Markets Stocks India News City News Economy Mutual Funds Personal Finance IPO News Startups

Home Currencies Commodities Pre-Market IPO Global Market Bonds

Home Loans up to 50 Lakhs Credit Cards Lifetime Free Finance TrackerNew Fixed Deposits Fixed Deposit Comparison Fixed Income

Home MC 30 Top Ranked Funds ETFs Mutual Fund Screener

Income Tax Calculator EMI Calculator Retirement Planning Gratuity Calculator

Stock Markets

News18 Firstpost CNBC TV18 News18 Hindi Cricketnext Overdrive Topper Learning

About Us Contact Us Advisory Alert Advertise with Us SupportDisclaimer Privacy Policy Cookie Policy Terms & Conditions Financial Terms (Glossary) Sitemap Investors

You are already a Moneycontrol Pro user.