Prabhudas Lilladher Upgrades Cholamandalam Investment to 'BUY', Sets Rs 1850 Target

• Prabhudas Lilladher upgraded Cholamandalam Investment and Finance Company (CIFC) to 'BUY' from 'ACCUMULATE'.
• The target price remains unchanged at Rs 1,850, based on a P/ABV multiple of 3.7x and rolled forward to Mar’28.
• The upgrade is driven by a better growth and credit cost outlook for Q4FY26/FY27E.
• CIFC reported healthy Q3 disbursements with 16% YoY growth across segments, boosted by GST cuts and festive demand.
• AUM growth estimates are retained at 22%/21% for FY26/FY27E, with expected NIM improvement and elevated opex due to expansion in Gold Loans.