Cholamandalam Investment Reports Strong Q3 FY24-25 Growth Amid Sideways Market Trend

Feb 10 2025 06:59 PM IST
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Cholamandalam Investment & Finance Company has recently experienced a change in evaluation, reflecting its strong financial performance. The firm reported significant growth in net sales and profit after tax, alongside a solid return on equity. Despite a sideways technical trend, it has consistently outperformed the BSE 500.
Cholamandalam Investment & Finance Company has recently undergone an adjustment in evaluation, reflecting the company's ongoing performance and market position. The firm has demonstrated a consistent financial trajectory, reporting positive results for the last nine consecutive quarters. In the latest quarter, Q3 FY24-25, the company achieved a notable net sales figure of Rs 12,988.10 crore, marking a growth rate of 34.87%. Additionally, the profit after tax (PAT) for the half-year reached Rs 2,056.01 crore, with an annual growth of 24.99%.

The company's long-term fundamentals remain robust, highlighted by an average return on equity (ROE) of 16.97%. Furthermore, Cholamandalam has shown healthy growth in operating profit, which increased at an annual rate of 21.69%. Despite these strengths, the technical trend has indicated a sideways movement, suggesting a lack of clear price momentum.

With high institutional holdings at 43.53%, Cholamandalam benefits from the analytical capabilities of these investors. The stock has consistently outperformed the BSE 500 over the past three years, generating a return of 19.39% in the last year alone.

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