Motilal Oswal’s research team has stood by its positive outlook on Cholamandalam Investment and Finance Company (CIFC) despite recent media allegations.
What the Allegations Said
An investigative report claimed that CIFC was involved in large related‑party transactions, irregular cash handling, governance lapses, and non‑compliance with regulations.
How CIFC Responded
The company quickly denied the accusations, calling them malicious and unfounded. It said the claims stem from a misreading of public disclosures and that there is no change in its business plan, performance, or guidance.
Analyst’s Viewpoint
Motilal Oswal believes CIFC remains a strong business. The firm projects a compound annual growth rate (CAGR) of about 20% in assets under management (AUM) and roughly 25% growth in profit after tax (PAT) from FY25 to FY28.
Key Financial Forecasts
- Expected AUM CAGR: ~20% (FY25‑FY28)
- Expected PAT CAGR: ~25% (FY25‑FY28)
- Projected Return on Assets (RoA) in FY28: 2.7%
- Projected Return on Equity (RoE) in FY28: 20%
Investment Recommendation
Motilal Oswal reiterates a BUY rating on CIFC with a target price of INR 2,000 per share, which is about four times the estimated book value per share for December 2027.
Disclaimer
Remember, this is an analyst’s opinion, not a guarantee of future performance. Do your own research or consult a qualified financial advisor before making any investment decisions.