Cholamandalam on firm ground aided by strong growth, decline in bad loans

The main growth driver for Cholamandalam was its vehicle finance business

Even as the stock markets are under pressure, shares of Cholamandalam Investment and Fincance Company have been outperforming, hitting a record high of Rs 1,475 on Wednesday. 

The Cholamandalam stock is up 14 per cent since January 30 after its good performance in the December quarter (Q3). In comparison, the Sensex was down 4 per cent in the same period. 

Strong show

In Q3, the company reported 53 per cent, year on year (y-o-y) growth in net profit, atRs 2.49 billion and a surge in net interest margin (NIM) to 9.6 per cent from 8.4 per cent in the year-ago