THIS SCRIP WAS EARLIER RECOMMENDED ON MARCH 8,2010 @ Rs.82/- .NOW IT IS QUOTING AT Rs.103 .AFTER THE RECENT DEVELOPMENTS IN THIS COMPANY ,IT IS WORTH BUYING EVEN AT CURRENT LEVEL .HENCE IT IS THE SECOND TIME .....
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Cholamandalam DBS ,the financial service arm of Murugappa Group is a well known name in South India . During last two years company was in trouble due to mounting NPA in its consumer finance business and posted huge loss in 2009 which forced the company to skip even the dividend. In order to bring back the company into past glory, management decided to stop the consumer finance business and asset management business (where it was the sponsor).After streamlining the product line company is now focusing in vehicle finance,corporate mortgage finance and home loan segment . It also planning to develop factoring business in a big way.All of its dedicated efforts are showing good signs. For the last nine months company’s disbursements up almost 80% over previous year and company back to black . Considering the history of group ,its recent repurchase of stake held by the DBS group and the proposed entrance of International Finance Corporation into this company and lessons it learned from the past ,company’s performance is expected to improve significantly in future. Moreover ,management is very liberal in dividend payment – normally paying 40-45% (except last year) which ensures reasonable dividend yield too.
I total agree with you. Murugappa Group is most respective and geninue group. See Now hoe Coro engg from same group of infrasturcure sector is doing excellent.
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