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Cholamandalam Investment slips 9% in four days

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Capital Market
Last Updated : Jan 06 2023 | 3:50 PM IST

Cholamandalam Investment and Finance Company declined 2.86% to Rs 664, extending losses for the fourth consecutive trading session.

Shares of the NBFC lost 9.28% in four trading sessions from its recent closing high of Rs 731.95 on 2 January 2023.

On the BSE, 1.03 lakh shares were traded in the counter so far compared with average daily volumes of 26,182 shares in the past two weeks. The stock hit a high of Rs 693.95 and a low of Rs 658 so far during the day.

The stock hit a 52-week high of Rs 817.95 on 6 September 2022. The stock hit a 52-week low of Rs 551.65 on 11 January 2022.

The stock had underperformed the market over the past one month, declining 9.64% compared with 4.31% decline in the Sensex.

The scrip had underperformed the market in past three months, sliding 8.85% as against Sensex's 2.93% rise.

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However, the counter had outperformed the market in past one year, advancing 17.58% as against 0.55% increase in the Sensex.

On the technical front, the stock's daily RSI (relative strength index) stood at 31.181. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock was trading below its 50-day, 100-day and 200-day simple moving average (SMA) placed at 725.32, 742.94 and 712.27, respectively. These levels will act as crucial ressitance zones in near term.

Cholamandalam Investment and Finance Company, the financial services arm of Murugappa Group, is a diversified non-banking finance company engaged in providing vehicle finance, home loans and corporate mortgage loans, small and medium enterprises (SME) loans, investment advisory services, stock broking and a range of other financial services.

The NBFC's net profit declined 7.1% to Rs 563.41 in Q2 FY23 as against Rs 606.54 crore recorded in Q2 FY22. Total Income jumped 22.42% to Rs 3,037.78 crore in quarter ended 30 September 2022 from Rs 2481.54 crore posted in the same quarter a year ago.

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First Published: Jan 06 2023 | 3:20 PM IST

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