Cholamandalam Stock Holds Key Support: SEBI RA Deepak Pal Sees Upside To ₹1,650

Cholamandalam Investment and Finance Company stock is showing positive signs on the daily chart after finding strong support near its 55-day exponential moving average (EMA), according to SEBI-registered analyst Deepak Pal.

The stock had been consolidating within a narrow range between its 14-day and 55-day EMAs, hinting at a bullish bias, Pal said.

https://stocktwits.com/Investogainerresearch/message/618426875 

On Friday, the stock opened at ₹1,584.80, touched a high of ₹1,599.00, but ended the session lower at ₹1,550.10. Despite the decline, the analyst noted that it held above the crucial short-term support near ₹1,525 and formed a higher low at ₹1,536.10, indicating buying interest at lower levels.

On the hourly chart, a double bottom pattern is forming, often seen as a bullish reversal indicator, Pal said, adding that positive movement in peer NBFCs like Jio Financial further reinforces sector sentiment.

The analyst stated that if the stock sustains its price above ₹1,535–₹ 1,540, a retest of the recent high near ₹1,600 could be expected. A breakout above that could open the door to ₹1,650. He suggested setting a stop-loss at ₹1,490.

The company operates across vehicle finance, SME loans, home loans, and consumer lending, with a strong presence in rural and semi-urban markets. Its diversified assets under management (AUM) stands at over ₹1.35 lakh crore.

In FY24, it delivered strong results with revenue exceeding ₹16,000 crore and net profit over ₹2,700 crore, supported by NIMs of 8% and a healthy GNPA of 3.1%. It has a capital adequacy ratio of about 20% and ROE of 18–20%.

Recent RBI relaxations and rising credit demand further strengthen its outlook, positioning it well for sustained growth, Pal added.

Retail sentiment on Stocktwits turned 'bullish' from 'neutral' a day ago.

Year-to-date, Cholamandalam stock has gained over 30%.

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