From 40 Thousand to One Crore in 14 Years: Should You Consider Adding This NBFC Stock to Your Portfolio?
Cholamandalam Investment and Finance Company
The Journey of Cholamandalam Investment and Finance Company: From Rs 4.56 to Rs 1146.30 – A Multibagger Stock Tale
In the world of investment, there are stories of remarkable success that inspire awe and admiration. One such story revolves around the shares of Cholamandalam Investment and Finance Company.
On February 27, 2009, its shares were worth a mere Rs 4.56, but today, they stand proudly at Rs 1146.30, a staggering growth that has turned an initial investment of just Rs 40,000 into a whopping one crore in a span of 14 years.
Let’s delve deeper into the journey of this veteran NBFC and understand the factors that made it a multibagger stock.
The Phenomenal Growth
Cholamandalam Investment and Finance Company, despite facing market headwinds, has managed to create millionaires among its investors over the long term. In the past 14 years, an investment of a mere Rs 40,000 has blossomed into a colossal one crore.
This astonishing growth has attracted investors and has helped the stock gain over 56 percent strength in the current year.
As of now, it has closed at Rs 1146.30 on BSE, though it has experienced a 6 percent decline from its recent record high in the last two weeks.
A Journey of 14 Years
Back in 1978, the Murugappa Group established Cholamandalam Investment and Finance Company as a financial services arm.
Starting as an equipment financing company, it has evolved over the years to offer a comprehensive range of financial services.
From vehicle finance and home loans to loans against property, SME loans, and personal loans, the company has expanded its offerings to cater to a diverse clientele.
The Rise to the Top
The journey of Cholamandalam’s shares has been filled with ups and downs, and its growth trajectory has left investors astounded.
On July 18, 2022, it hit a one-year low of Rs 635, only to bounce back with a remarkable surge of over 91 percent in about a year, reaching an all-time high of Rs 1214.60 on July 4, 2023.
While profit-booking has led to a slight slowdown in the stock’s price, its performance remains impressive.
What Drives Cholamandalam?
One of the key factors behind Cholamandalam Investment and Finance Company’s success is its diverse portfolio of financial services.
The company’s presence in multiple domains has helped it tap into various sectors and adapt to changing market trends.
With 1191 branches spread across the country and managing assets worth Rs 112,782 crore, Cholamandalam has solidified its position in the financial landscape.
Strong Financial Performance
The financial health of a company plays a vital role in its success, and Cholamandalam has consistently demonstrated its prowess in this aspect.
In January-March 2023, its net profit surged by nearly 25 percent on a quarterly basis, reaching an impressive figure of Rs 852.84 crore.
Such robust financial performance has instilled confidence among investors and strengthened their belief in the company’s potential.
Conclusion
The tale of Cholamandalam Investment and Finance Company is a remarkable one, filled with determination, growth, and success.
From its humble beginnings to becoming a multibagger stock, it has left a lasting impact on the investment landscape.
This journey stands as a testament to the power of consistent performance, adaptability, and a customer-centric approach.
FAQs
What was the share price of Cholamandalam Investment and Finance Company on February 27, 2009? On February 27, 2009, the share price of Cholamandalam Investment and Finance Company was just Rs 4.56.
How much has an investment of Rs 40,000 grown into after 14 years? An investment of Rs 40,000 has grown into a remarkable one crore in 14 years.
What has been the recent performance of Cholamandalam’s shares? Cholamandalam’s shares have experienced a 6 percent decline from their recent record high in the last two weeks.
What services does Cholamandalam Investment and Finance Company offer? Cholamandalam offers a range of financial services, including vehicle finance, home loans, loans against property, SME loans, and personal loans.
How many branches does Cholamandalam have, and what is the value of its managed assets? Cholamandalam has 1191 branches across the country and manages assets worth Rs 112,782 crore.
