External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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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

<ul><li>Chola’s exposure to unsecured retail credit through FinTech partnerships is low (~1.8% of AUM as of Sep-23) and poses limited downside risk on account of the underlying customer profile and partnership dynamics</li><li>Chola’s core businesses (vehicle, LAP and home loans) have delivered steady outcomes on growth as well as profitability parameters</li><li>With an increasingly diversified portfolio, we expect Chola to deliver steady loan growth (&gt;20%) and profitability (RoE of &gt;20%) in the medium-term, with the recent equity raise to support loan growth</li></ul>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.

Chola’s exposure to unsecured retail credit through FinTech partnerships is low (~1.8% of AUM as of Sep-23) and poses limited downside risk on account of the underlying customer profile and partnership dynamicsChola’s core businesses (vehicle, LAP and home loans) have delivered steady outcomes on growth as well as profitability parametersWith an increasingly diversified portfolio, we expect Chola to deliver steady loan growth (&gt;20%) and profitability (RoE of &gt;20%) in the medium-term, with the recent equity raise to support loan growthContent 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 Company: Strong Franchise but Diminishing Margin of Safety.

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.

<ul><li>Strong growth in Disbursement at 47/8% YoY translated into healthy advances growth of 42/8% YoY/QoQ.</li><li>NIM reported at 7.4%, an increase of 10bps sequentially. However, it declined by 20bps YoY.</li><li>Robust AUM growth and increase in margins sequentially aided healthy growth in NII at 35/9% YoY/QoQ. </li></ul>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.

Strong growth in Disbursement at 47/8% YoY translated into healthy advances growth of 42/8% YoY/QoQ.NIM reported at 7.4%, an increase of 10bps sequentially. However, it declined by 20bps YoY.Robust AUM growth and increase in margins sequentially aided healthy growth in NII at 35/9% YoY/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 Invst. & Finance Company Ltd - Strong Disbursement Growth with Healthy Margins

<ul><li>Despite Q1 being a seasonally weak quarter, CIFC reported a healthy disbursement growth of 50% YoY led by robust growth across segments, however declined by 4.8% QoQ.</li><li>AUM continued to report strong growth of 40/8% YoY/QoQ, with VF/Home Loans/LAP/New Businesses growing at 28/60/29/286% YoY respectively.</li><li>Margins reported a contraction of 70/50 bps YoY/QoQ due to spike in cost of funds.</li></ul>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.

Despite Q1 being a seasonally weak quarter, CIFC reported a healthy disbursement growth of 50% YoY led by robust growth across segments, however declined by 4.8% QoQ.AUM continued to report strong growth of 40/8% YoY/QoQ, with VF/Home Loans/LAP/New Businesses growing at 28/60/29/286% YoY respectively.Margins reported a contraction of 70/50 bps YoY/QoQ due to spike in cost of funds.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 Invst. & Finance Company Ltd. - Growth Visibility Healthy; Maintain BUY!

<ul><li>CIFC reported a healthy disbursement growth of 65/20% led by robust growth across segments.</li><li>Strong disbursements translated into an equally solid AUM growth of 38/12% YoY/QoQ, with VF/Home Loans/LAP/New Businesses growing at 27/60/26/480% YoY respectively.</li><li>NII grew by 29/10% YoY driven by healthy AUM growth and margin improvement of 20bps QoQ.</li></ul>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.

CIFC reported a healthy disbursement growth of 65/20% led by robust growth across segments.Strong disbursements translated into an equally solid AUM growth of 38/12% YoY/QoQ, with VF/Home Loans/LAP/New Businesses growing at 27/60/26/480% YoY respectively.NII grew by 29/10% YoY driven by healthy AUM growth and margin improvement of 20bps 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 Invst. & Finance Company Ltd. - Stellar Quarter; Growth Levers Intact!

Thematic (Sector/Industry)

<ul><li>India’s heterogenous unsecured retail credit market (US$160bn, 3-year CAGR at ~23%) has been in the headlines ever since the RBI clamped down on select categories of consumer credit</li><li>Our discussions with experts suggest that the RBI’s note of caution is largely centred on small-ticket personal loans (STPL) (ticket size</li><li>The RBI’s risk-weight measures are likely to increase the hurdle rate for banks and NBFCs towards unsecured consumer loans, resulting in a material growth deceleration</li></ul>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.

India’s heterogenous unsecured retail credit market (US$160bn, 3-year CAGR at ~23%) has been in the headlines ever since the RBI clamped down on select categories of consumer creditOur discussions with experts suggest that the RBI’s note of caution is largely centred on small-ticket personal loans (STPL) (ticket sizeThe RBI’s risk-weight measures are likely to increase the hurdle rate for banks and NBFCs towards unsecured consumer loans, resulting in a material growth decelerationContent 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.

Leveraged Financials: Emerging Long-Tail Risks in Unsecured Credit

India

Cholamandalam Investment and Finance Company Limited operates as a financial services provider. The Company offers vehicle finance, home equity loans, investment advisory, stock broking, and other financial services to customers.

Cholamandalam Investment and Finance (CIFC IN)

Cholamandalam Investment and Finance (CIFC IN)

Cholamandalam Investment & Finance Company: Strong Franchise but Diminishing Margin of Safety.

Chola’s core businesses (vehicle, LAP and home loans) have delivered steady outcomes on growth as well as profitability parameters

HDFC Securities

Cholamandalam Invst. & Finance Company Ltd - Strong Disbursement Growth with Healthy Margins

Strong growth in Disbursement at 47/8% YoY translated into healthy advances growth of 42/8% YoY/QoQ. NIM reported at 7.4%, an increase of 10bps...

Axis Direct

Cholamandalam Invst. & Finance Company Ltd. - Growth Visibility Healthy; Maintain BUY!

Despite Q1 being a seasonally weak quarter, CIFC reported a healthy disbursement growth of 50% YoY led by robust growth across segments, however...

Axis Direct

Cholamandalam Invst. & Finance Company Ltd. - Stellar Quarter; Growth Levers Intact!

Strong disbursements translated into an equally solid AUM growth of 38/12% YoY/QoQ, with VF/Home Loans/LAP/New Businesses growing at 27/60/26/480%...

Axis Direct

Leveraged Financials: Emerging Long-Tail Risks in Unsecured Credit

India’s heterogenous unsecured retail credit market (US$160bn, 3-year CAGR at ~23%) has been in the headlines ever since the RBI clamped down on...

HDFC Securities