Fundamental Analysis

CHOLAMANDALAM FINANCIAL HOLDINGS LTD.

Ticker : 504973
BUY: Rs 698.40
Target: Rs 790

Cholamandalam Financial Holdings Limited (CFHL) is a core investment company registered with Reserve Bank of India, holding substantial investments in group companies. CFHL offers a diverse range of financial products and risk management services to individual & corporate customers through its group companies. On a quarterly consolidated financial front, the income from interest was reported at Rs 0.06 crore for Q2FY22, which is a substantial decrease as compared to Rs 0.42 crore reported for Q2FY21. The total income jumped to Rs 28.27 crore for Q2FY22 from Rs 2.53 crore in Q2FY21. For Q2FY22, the company earned a net profit of Rs 21.42 crore against a net loss of Rs 3.42 crore incurred in Q2FY21. The general insurance industry has rebounded well from the impact of the first wave by recording a decent growth in FY22. A similar recovery, as well as rebound, is expected as the infection rate subsides and vaccination levels enhance in FY22. Hence, we recommend BUY.