Cholamandalam Investment shares extend gains, jump 8% to hit one-year high; here’s what pulling the stock up today
Shares of Cholamandalam Investment and Finance Company Ltd rose sharply in Thursday’s trade, extending their gains for the sixth consecutive session. The stock surged 8.25 per cent to hit its 52-week high of Rs 846 amid heavy volumes. The sharp movement in the share price came after the financial services arm of the Murugappa Group reported healthy disbursements in the March quarter (Q4) of the financial year 2022-23 (FY23).
“Disbursements for Q4 FY23 stood at Rs 21,020 crore as against Rs 12,718 crore in Q4 of FY22, which is a growth of 65 per cent and for FY23 came at Rs 66,532 crore as against Rs 35,490 crore, which is a growth of 87 per cent,” the company stated in an exchange filing.
Disbursements in vehicle finance business grew by 39 per cent to Rs 12,190 crore in Q4 FY23 and by 56 per cent in FY23 to Rs 39,699 crore, while disbursements in MSME business stood at Rs 2,104 crore for Q4 FY23 and Rs 6,388 crore in FY23, it added.
Cholamandalam Investment also mentioned that its collection efficiency on billing at an overall level stood at 130 per cent in March 2023 quarter.
“The company continues to hold a strong liquidity position with Rs 5,222 crore as cash balance, as of March 23 (including Rs 1,500 crore invested in G-Sec and Rs 1,600 invested in T-Bill shown under investments), with a total liquidity position of Rs 6,750 crore (including undrawn sanctioned lines),” the company further stated.
Today, around 2.63 lakh shares changed hands on BSE, which was more than six times compared to the two-week average volume of 43,000 shares. Turnover on the counter came at Rs 21.91 crore, commanding a market capitalisaiton (m-cap) of Rs 69,297.09 crore.
On the technical front, the counter has support around the Rs 770-800 zone.
Ganesh Dongre, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “On the daily charts, the stock has given a trend line breakout at the Rs 760-770 price zone. Looking towards the other technical parameters, a more upward run is possible. MACD and RSI are still showing strength in this counter. So, traders can hold and buy this stock with a stop loss of Rs 790 for the target price of Rs 890-900.”
AR Ramachandran from Tips2trades said, “The stock looks very bullish but also overbought on the daily charts with strong resistance at Rs 854. Investors should book profits at current levels as a fall till support zone of Rs 770-800 looks possible in the coming days.”
Meanwhile, Indian equity benchmarks turned positive in Thursday’s trade as the Reserve Bank of India (RBI) surprised markets by holding its key repo rate steady at 6.50 per cent after six straight hikes.
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