100% Payout In FY23: NBFC Stock Okays 65% Interim Dividend For FY24; Buy?

This week, attention will be on Cholamandalam Investment and Finance Company Ltd, a large-cap NBFC business, after the announcement of the company's financial results for the quarter that ended on December 31, 2023, as well as an interim dividend for FY24.

Cholamandalam Investment and Finance Company Dividend

"Payment of an interim dividend on the outstanding equity shares of the Company at the rate of 65% being Rs.1.30 per equity share of Rs.2/-each for the year ending 31st March 2024. Record date for the purpose of payment of interim dividend shall be 7th February, 2024. The interim dividend shall be paid to those shareholders whose names appear in the register of members as on the record date. The interim dividend will be paid on or before 24th February, 2024," said Cholamandalam Investment and Finance Company in a stock exchange filing.

Cholamandalam Investment and Finance Company has announced an equity dividend of 100.00% at a face value of Rs 2, or Rs 2 per share, for the year ending in March 2023. This generates a dividend yield of 0.16% at the current share price of Rs 1250.55.

For the past five years, the firm has regularly distributed dividends and has a strong dividend track record. Since July 9, 2001, Cholamandalam Investment & Finance Company Ltd. has declared 37 dividends, according to statistics from Trendlyne.

Cholamandalam Investment and Finance Company Financials

The company's net income for the December 2023 quarter was Rs 2,580 Cr, up 41% year on year, while its PAT for the same period was Rs 876 Cr, up 28%. While disbursements for the quarter were Rs 22,383 Cr (up 27% YoY), its total assets under management (AUM) reached Rs 1,41,143 Cr (up 36% YoY). In Q3, Chola disbursed a total volume of Rs 22,383 Cr. The business of loans against property jumped by 51%, while home loans surged by 48% as a result of branch growth into Tier 3 and Tier 4 regions.

Aggregate disbursements increased by 27% to Rs 22,383 Cr in Q3 FY 24 from Rs 17,559 Cr in Q3 FY 23.Disbursements for the year ended December 2023 totalled Rs 63,940 Cr, up from Rs 45,512 Cr the year before, representing a 40% YoY increase. Disbursements for vehicle finance (VF) increased by 18% to Rs 12,354 Cr in Q3 FY24 from Rs 10,446 Cr in Q3 FY23. Disbursements for the year ended December 2023 totalled Rs 35,385 Cr, up from Rs 27,509 Cr the year before, representing a 29% YoY increase.

Cholamandalam Investment and Finance Company Share Price Target

Cholamandalam Investment is slightly bearish on the Daily charts and faces strong resistance at 1305. A daily close below support of 1200 could lead to a target of 1085 in the near term, said AR Ramachandran from Tips2trades.

Disclaimer

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