Chola Financial's Q1 results show positive growth, but areas for improvement remain

Cholamandalam Financial Holdings, a leading non-banking financial company (NBFC) in the finance industry, has recently declared its financial results for the quarter ending June 2024. The stock call for the company by MarketsMOJO is 'Hold'.

According to the financials, Chola Financial has shown positive performance in the quarter, with a score of 15 compared to 22 in the previous quarter. The company's net sales have been consistently growing in the last five quarters, with the highest at Rs 7,632.71 crore. The operating profit (PBDIT) has also shown a positive trend, with the highest at Rs 4,379.81 crore. The profit before tax (PBT) and profit after tax (PAT) have also seen a significant increase in the last five quarters.

The company's earnings per share (EPS) have also been consistently increasing, with the highest at Rs 29.20 in the last five quarters. This shows that Chola Financial has been able to generate higher earnings for its shareholders.

However, there are some areas that need improvement for the company. The operating cash flow has been falling each year in the last three years, with the lowest at Rs -35,726.42 crore. This indicates that the company's cash revenues from business operations are declining. Additionally, the dividend payout ratio (DPR) has also been decreasing each year in the last five years, with the lowest at 0.58%. This means that the company is distributing a lower proportion of its profits as dividends.

Overall, Cholamandalam Financial Holdings has shown positive financial performance in the quarter ending June 2024. However, there are some areas that need improvement for the company to maintain its growth and profitability in the long run. Investors are advised to hold their stocks in Chola Financial for now, as per the recommendation by MarketsMOJO.