 "Cholamandalam Investment hits lifetime high")
Cholamandalam Investment and Finance Company (CIFC) has hit its lifetime high of Rs 892 on the National Stock Exchange (NSE), in an otherwise weak market.
In past three-trading sessions, the stock rallied 12% from Rs 796 on April 29, after the company said its net interest margin (NIMs) expanded by 90 basis points to 9.4% in March 2016 quarter (Q4FY16) against 8.0% in the same quarter last year.
The NIM was strengthened by a healthy increase in interest income, reduction in cost of funds and substantial increase in fee & other income.
The company reported a strong 42% year on year (YoY) growth in consolidated net profit at Rs 192 crore for Q4FY16, on back of healthy 34% YoY jump in net income at Rs 603 crore over the previous year quarter. CIFC posted robust disbursement growth of 41% YoY in Q4. Vehicle finance disbursals grew 47% YoY led by used vehicles, refinance and heavy commercial vehicles (HCVs).
“Collections performance improved through the quarter resulting in roll?forward rates in all buckets dropping consistently and improved gross non-performing assets (GNPA) position. The GNPA is 3.53% (at 4 months’ overdue) and net NPA is 2.13%,” CIFC said in a statement.
Religare Institutional Research maintains ‘buy’ rating on the stock with target price of Rs 1,000, given the improvement in margins and decline in operating cost ratios.
At 03:00 pm, the stock was up 4% at Rs 879 on the NSE as compared to 0.33% decline in Nifty 50 index. A combined 302,323 shares changed hands on the counter on the NSE and BSE so far.
In past three-trading sessions, the stock rallied 12% from Rs 796 on April 29, after the company said its net interest margin (NIMs) expanded by 90 basis points to 9.4% in March 2016 quarter (Q4FY16) against 8.0% in the same quarter last year.
The NIM was strengthened by a healthy increase in interest income, reduction in cost of funds and substantial increase in fee & other income.
The company reported a strong 42% year on year (YoY) growth in consolidated net profit at Rs 192 crore for Q4FY16, on back of healthy 34% YoY jump in net income at Rs 603 crore over the previous year quarter. CIFC posted robust disbursement growth of 41% YoY in Q4. Vehicle finance disbursals grew 47% YoY led by used vehicles, refinance and heavy commercial vehicles (HCVs).
“Collections performance improved through the quarter resulting in roll?forward rates in all buckets dropping consistently and improved gross non-performing assets (GNPA) position. The GNPA is 3.53% (at 4 months’ overdue) and net NPA is 2.13%,” CIFC said in a statement.
Religare Institutional Research maintains ‘buy’ rating on the stock with target price of Rs 1,000, given the improvement in margins and decline in operating cost ratios.
At 03:00 pm, the stock was up 4% at Rs 879 on the NSE as compared to 0.33% decline in Nifty 50 index. A combined 302,323 shares changed hands on the counter on the NSE and BSE so far.
