Cholamandalam Investment & Finance Company is one of India’s largest diversified NBFCs with strong presence across vehicle finance, SME lending, home loans, and rural-focused credit. Its long operating history across cycles makes it a key barometer for credit quality trends in the NBFC space.Market narratives often change quietly. Not with noise — but with numbers, balance sheets, and risk indicators moving in the right direction.

The recent quarter delivered better-than-expected operating performance, driven by stable net interest income, easing credit costs, and visible stabilization in asset quality. Importantly, earnings strength came not from aggressive growth but from disciplined underwriting and portfolio clean-up.

Early-bucket delinquencies have plateaued while unsecured portfolio stress is gradually declining. This matters because credit cycles do not turn suddenly — they heal incrementally. When early stress indicators flatten, the worst is often behind.

Disbursements grew steadily across vehicle finance and SME segments, aided by improving CV and PV demand. Management commentary points to 20–21% AUM growth visibility without compromising credit filters — a rare combination after a tightening cycle.

After a meaningful correction over the last two months, the stock now trades close to long-term mean valuation bands. Historically, such phases tend to precede re-rating when earnings quality stabilizes.

Glenmark Pharmaceuticals operates across branded generics, specialty products, and complex formulations, with strong footprints in India and North America. Its differentiated pipeline has long been the backbone of its valuation thesis.

Revenue growth remained healthy year-on-year, while EBITDA expanded sharply due to operating leverage. Margins widened meaningfully as R&D intensity normalized and funding needs around key subsidiaries eased.

In pharma, sustainable margin expansion often signals a shift from investment phase to harvesting phase. Glenmark appears to be entering that transition, where incremental revenues translate more efficiently into profits.

New launches across India and North America, combined with stabilization at key facilities, are expected to improve operating leverage further. From FY28 onward, the earnings profile could look structurally different from the past cycle.

Valuations based on forward earnings remain undemanding relative to historical averages. When margins expand before revenue acceleration, markets often adjust valuations with a lag.