Strong earnings growth to fuel Cholamandalam

Continued traction in the light commercial vehicle books along with diversification to help

Cholamandalam Investment and Finance Company (Cholamandalam)'s focus on the niche segment of light commercial vehicles or LCV lending has made it stand out among peers, and led to a 58 per cent rise in the share price in the past one year. Focus on big-ticket fleet operators as well as first mover advantage in this segment have aided its growth, profitability as well as asset quality. In fact, at 3.8 per cent, the company's gross non-performing assets (NPA) ratio is amongst the lowest in the NBFC space. Though not strictly comparable, other NBFCs operating in the vehicle finance space have