HSBC has reiterated its buy rating on Cholamandalam Investment and Finance Company (CIFC) with a target price of ₹1,670, following management commentary at its non-deal roadshow. The company anchored its FY26 growth expectations at around 20% year-on-year but flagged ongoing macroeconomic challenges.
Margins are expected to benefit from a lower cost of funds, while credit cost guidance for FY26 was set at 10 basis points above the FY25 average of 1.4%. Looking ahead, management expressed greater optimism for FY27, expecting stronger growth in assets under management, further margin expansion, and lower credit costs. HSBC said the company’s balanced approach, focus on profitability, and resilient business model underpin its positive view on the stock.
Disclaimer: The views and recommendations made in this article are those of HSBC. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
