Cholamandalam Finance hits 52-week high on robust Q4 updates

Shares of Cholamandalam Finance and Investment Company edged up over 7 percent in early trade on April 6 and tested its highest level in 52-weeks after the company recorded strong loan growth in the fourth quarter.

Disbursements for the non-banking finance lender grew 65 percent on year to  Rs 21,020 crore as against Rs 12,718 crore in the same period last year. For FY23, disbursements were up 87 percent to Rs 66,532 crore from FY22’s Rs 35,490 crore.

The rise in disbursements was seen across segments like vehicle finance, home loans, MSME, and others. In the fourth quarter of FY 23, the lender disbursed Home Loans of Rs 1,405 crore, while for the entire financial year, the disbursements amounted to Rs 3,830 crore, reflecting a year-on-year growth of 156 percent and 102 percent, respectively.

Meanwhile, disbursements in the MSME business were at Rs 2,104 crore in Q4 and Rs 6,388 crore in the entire FY 23, reflecting an on year jump of 127 percent and 232 percent, respectively.

At 10.40 am, shares of Cholamandalam Investment and Finance Company were trading with gains of 6.84 percent at Rs 836.85 on the National Stock Exchange. The stock tested 52-week high of Rs 838.60 earlier in the session.

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34 lakh shares also changed hands on the exchanged so far, as against the one-month daily traded average of 11 lakh shares.

The lender’s collection efficiency on billing at an overall level also stood at 130 percent in the January-March period. The company also holds a strong liquidity position, with cash balance of Rs 5,222 crore at the end of March, including investments worth Rs 1,500 crore in G-sec and Rs 1,600 crore in T-bills.