Motilal Oswal - MOSL: Morning India (14/June/17)-1. Cholamandalam Investment Finance-Prepared, Equipped and Armed; 2. Financials; 3. MCX; 4. Manpasand Beverages

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Motilal Oswal

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MOSL: Morning India (14/June/17)-1. Cholamandalam Investment & Finance-Prepared, Equipped and Armed; 2. Financials; 3. MCX; 4. Manpasand Beverages

â€‹MOrning India (14/June/17): 1. Cholamandalam Investment & Finance: Prepared, Equipped and Armed; 2. Financials; 3. MCX; 4. Manpasand Beverages; 5. Technology; 6. Telecom

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Todayâ€™s top research idea

Cholamandalam Investment & Finance: Prepared, Equipped and Armed; On path to become one of Indiaâ€™s finest multi-product lenders

â€‹From a niche vehicle financier, Cholamandalam Investment and Finance Corporation (CIFC) has transformed into a diversified asset finance play, with home equity now comprising 28% of the total loan book.
Over the past five years, CIFC has delivered 20% AUM CAGR and 30% EPS CAGR. Additionally, CIFC improved its expense ratio by 60bp to 3.2% over FY12-17, driven by better use of technology. We believe CIFC is well poised to reap further benefits of operating leverage due to higher employee productivity, enhanced use of technology for loan sourcing, and moderation in recovery expenses.
We expect the expense ratio to decline from 3.2% to 2.7% over FY17-20. The structural decline in opex ratios following productivity improvement should elevate RoA/RoE from 2.6%/18% in FY17 to 3.0%/20% in FY20.

Piping hot news

Bad loans: 12 cases account for 25% of gross NPAs; RBI sends names for immediate resolution under Bankruptcy Code; cases possibly include Bhushan, Essar Steel, Visa

A day after finance minister Arun Jaitley said a total of 81 default cases had been filed for resolution under the Insolvency and Bankruptcy Code (IBC), the central bank said its Internal Advisory Council (IAC) had recommended 12 accounts for immediate resolution under IBC.

14/06/2017 26 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: Morning India (14/June/17)-1. Cholamandalam Investment & Finance-Prepared, Equipped and Armed; 2. Financials; 3. MCX; 4. Manpasand Beverages

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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