External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only.  Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Cholamandalam Investment and Finance / Equity Bottom-Up

Cholamandalam Investment and Finance (CIFC IN)

<p>We recommend a BUY with a target price of 690 (3.9x FY24 P/ABV).</p><p>Cholamandalam Invst. &amp; Finance Company Ltd (CIFC) Q2FY22 performance was led by a strong pick-up in disbursements (up 35% YoY), NIM traction (~7.7%) and asset quality improvement. However, AUM growth was relatively lower than expectations at 4.2% YoY (albeit high base effect). Opex increased by 46%/40% YoY/QoQ as business activities normalise. This resulted in subdued operating profits of Rs 8.7 Bn, down 2.8%/11.9% YoY/QoQ. Provisions were down 82%/89% YoY/QoQ to Rs 0.58 Bn. Headline asset quality improved with gross stage 3 assets at 6.2% vs. 6.8% in Q1FY22. Stage 2 assets also improved from 14% to 12.7% QoQ.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We recommend a BUY with a target price of 690 (3.9x FY24 P/ABV).Cholamandalam Invst. &amp; Finance Company Ltd (CIFC) Q2FY22 performance was led by a strong pick-up in disbursements (up 35% YoY), NIM traction (~7.7%) and asset quality improvement. However, AUM growth was relatively lower than expectations at 4.2% YoY (albeit high base effect). Opex increased by 46%/40% YoY/QoQ as business activities normalise. This resulted in subdued operating profits of Rs 8.7 Bn, down 2.8%/11.9% YoY/QoQ. Provisions were down 82%/89% YoY/QoQ to Rs 0.58 Bn. Headline asset quality improved with gross stage 3 assets at 6.2% vs. 6.8% in Q1FY22. Stage 2 assets also improved from 14% to 12.7% QoQ.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cholamandalam Investment & Finance: Signs of Recovery