Cholamandalam Finance Shares Rise After Jefferies Raises Target Price
Chennai-based financier Cholamandalam Investment and Finance Company (CFL) witnessed a surge in its share prices after global brokerage firm Jefferies raised its target price for the stock.
CFL shares closed 2.5% higher on the Bombay Stock Exchange (BSE) at INR 726.25 per share on Monday, following the positive analyst report.
The brokerage firm has upgraded its target price for CFL from INR 690 to INR 800, citing strong growth prospects, healthy asset quality, and improved profitability. Jefferies has maintained its "buy" rating on the stock.
In a research note, Jefferies analysts highlighted CFL's consistent performance over the past few quarters, with strong loan growth, improving margins, and a decline in bad loans.
The brokerage firm noted that CFL has been expanding its loan book in both its core vehicle financing business as well as in its non-vehicle loan segments, such as home loans and business loans.
Jefferies also pointed to CFL's strong capital position and its ability to raise funds at attractive rates. The brokerage firm believes that CFL is well-positioned to benefit from the ongoing economic recovery and the growth in demand for credit in India.
The positive analyst report has boosted investor sentiment towards CFL, leading to a rise in its share price. Market analysts believe that the stock has further upside potential and could continue to perform well in the coming months.
Comments