NBFC – Cholamandalam Investment & Finance delivered fantastic returns of over 400% in 3 years

Cholamandalam Investment & Finance Company Limited has delivered multibagger returns to its shareholders in the last three years. During this period, the company’s share price jumped from Rs 237.25 on October 16, 2020, to Rs 1258.80 on October 13, 2023, an increase of about 400% in a three-year holding period.

An investment of Rs 1 lakh in the shares of this company one year ago would have turned to Rs 5 lakh today.

Cholamandalam Investment & Finance Company Limited has reported a strong first quarter for FY24, with net profit growth of 25.75% to Rs 713.38 crore, compared to Rs 567.28 crore in the same quarter last year. The operating profit also saw a significant increase of 56.12%. The total income for the quarter increased by 49.17% to Rs 4071.87 crore, compared to the previous year’s same quarter.

Cholamandalam Investment and Finance Company Limited (Chola) was incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers. The Company is one of the premier diversified non-banking finance companies in India, engaged in providing vehicle finance, home loans and Loan against property.

Today, the Cholamandalam Investment and Finance Company Limited (Chola) stock opened at Rs 1,245, with a high and low of Rs 1,260.40 and Rs 1,243.50, respectively. The stock ended the trading session at Rs 1,256.75, up by 0.98%. The stock has a 52-week high of Rs 1,284.45 and a 52-week low of Rs 658. The company has a ROCE of 9.72% and an ROE of 20.4% with a market capitalisation of Rs 1,05,435 crore.

The stock has shown strong growth and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.