Jefferies has maintained a buy rating on Cholamandalam Investment and Finance Company, assigning a target price of ₹1,800 per share, citing long-term structural positives despite near-term headwinds.
The brokerage noted that while growth and asset quality have remained soft year-to-date, the upcoming monsoon season will be a key factor in recovery. Management guidance suggests a 10–15 basis points expansion in net interest margins (NIMs) and flat credit cost in FY26.
Jefferies acknowledged that near-term weakness may persist, but views it as a buying opportunity given expected improvements. NIMs are likely to rise after Q1FY26 and strengthen further in FY27. The firm also anticipates that credit cost and operating expenses will ease by FY27, driving better return on assets (RoA) and return on equity (RoE) from FY25 to FY27.
Disclaimer: The views and recommendations above are those of the respective brokerage firm. They do not represent the views of this publication. Investors are advised to consult their financial advisers before making any investment decisions.
