Goldman Sachs initiates coverage on India’s Chola Investment and Finance with ‘buy’ #IndiaFinance

** Shares of Cholamandalam Investment and Finance CHLA.NS gain as much as 4.1%

** Goldman Sachs starts coverage with “buy” and PT of 1,786 rupees, an upside of 20.1% to last close

** Expects co to improve ROA profile and a robust loan growth over FY24-FY27, driven by capacity to diversify loan books for new businesses, secured nature of its book, operating leverage realization in new businesses

** Forecasts EPS growth of 33% CAGR over FY24-27

** Says its EPS estimates for FY25-26 are ahead of visible alpha consensus due to higher net interest income and lower operating costs

** On avg, analysts rate stock is “buy”, with median PT of 1,535 rupees vs current trading price of 1,549 rupees – LSEG

** CHLA has risen 21.6% YTD

Reporting by Meenakshi Maidas in Bengaluru