NBFC to Watch: Cholamandalam Finance Set to Reap Benefits from Rate Cut
Cholamandalam Finance is poised to gain significantly from a potential rate cut, driven by its impressive financial performance. The company's earnings per share (EPS) have witnessed a remarkable growth, surging from Rs 0.5 to Rs 41. Moreover, its return on equity (ROE) has consistently remained above 15%, demonstrating its ability to generate strong profits. With a 5-year compound annual growth rate (CAGR) of 23% in assets under management (AUM) and 30% in pre-tax profits, Cholamandalam Finance has established itself as a major player in the non-banking financial company (NBFC) sector. As interest rates continue to fluctuate, the company's robust financials and strategic growth initiatives position it for long-term success, making it an attractive option for investors seeking exposure to the Indian financial services market, particularly in the areas of asset management and financial planning.
