Cholamandalam Investment and Finance Company Ltd.
( Short Term Multibagger)
Buy at CMP 1611, Targets - 1665-1770, Time Frame - 3 to 9 months
TRIGGERS :
1) Cholamandalam Investment & Finance Company Ltd's Q4FY18 standalone net profit has increased by 32.54% yoy to Rs291cr which is much above the Estimated profits and Company is expected to deliver 24% earnings CAGR over
FY18-20E, led by Asset Under Management growth at 19.5% CAGR and improvement in asset quality, valuing at 3.8x FY20E Price to book value. The company’s standalone Net Interest Income stood at Rs917.50cr, up 35.83% yoy and 15.7% qoq
2) Cholamandalam Investment to set-up housing finance company which will boost the Net Interest Income
3) Strong Fundamentals with regular Dividends every 6 months, 20% Foreign Promotor Holding
Cholamandalam Investment and Finance Company Limited (Chola), incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers.
Chola operates from 873 branches across India with assets under management above INR 42,900 Crores. The subsidiaries of Chola are Cholamandalam Securities Limited (CSEC), Cholamandalam Home Finance Limited (CHFL) and White Data Systems India Private Limited (WDSI). The vision of Chola is to enable customers enter a better life. Chola has a growing clientele of over 8 lakh happy customers across the nation. Ever since its inception and all through its growth, the company has kept a clear sight of its values. The basic tenet of these values is a strict adherence to ethics and a responsibility to all those who come within its corporate ambit - customers, shareholders, employees and society.
Last Few Months Performance
TVS Motors (Investment Mantra)
Buy at CMP - 582 , Targets - 635 to 680 , Time Frame - 5 to 12 Months
TVS Motor Company is the third largest two-wheeler manufacturer in India, with a revenue of 15129 Cr INR (2017-18). The company has an annual production capacity of 4 million 2 wheelers & 120,000 3 wheelers.
TVS Group spans across industries like Automobile, Aviation, Education, Electronics, Energy, Finance, Housing, Insurance, Investment, Logistics, Service and Textiles. Has over 90 Companies under the umbrella. TVS Motor Company Ltd (TVS Motor), a member of the TVS Group (Revenue around INR. 40,000 Cr ), is the largest company of the group in terms of size and turnover.