Cholamandalam Finance‘s share price surged up over 9% on Thursday to hit a new 52-week high of ₹970 after the company reported its earnings for the March quarter.
What Happened: The company’s standalone total revenue from operations stood at ₹3,794 crore, up 44% from the year-ago period when the company booked revenue of ₹2,632 crore. The company’s assets under management (AUM) grew 36% year-over-year to ₹1.12 lakh crore. In a statement, the company said that the “retail AUM of NBFCs is expected to grow at a healthy 12-14% in FY2024, after a strong rebound in FY2023.”
See Also: Why Manappuram Finance Shares Tanked On Wednesday
The NBFC’s gross non-performing assets improved from 5.37% in December 2022 to 4.63% in March 2023. The company’s net profits saw a 25% year-over-year jump at ₹853 crore. Earnings per share for the quarter stood at ₹10.38. The company has declared a ₹0.70/share dividend for the year ended March.
The company’s strong performance has not only impressed investors, several analysts have also expressed positive sentiments after the company’s results. JP Morgan double-upgraded the stock’s rating from ‘underweight’ to ‘overweight’ pushing the price target to ₹1020 from ₹700. CLSA also maintained its ‘buy’ rating for the stock with a price target of ₹1,070. The global brokerage firm noted that the company delivered a strong performance on all fronts.
Price Action: Cholamandalam’s share price was up 6.93% to trade at ₹948 in the early hours of trading on Thursday.
Do Not Miss: Last Date Extended: How To Link Pan-Aadhaar Cards More Details
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.