22/4/2025, 1:38:02 pm

CLSA downgrades Cholamandalam Finance, cuts target price

CLSA downgraded Cholamandalam Investment & Finance to 'hold' due to inflated valuations, setting a target price of Rs 1,600. The stock trades at 4x P/B, a 9% discount to Bajaj Finance. Shares fell 2.8% post-downgrade. CLSA projects 18-20% AUM CAGR over two years, deeming high growth unsustainable. The stock surged 40% in a year, raising valuation concerns.