BUZZ-J.P.Morgan says India's Cholamandalam Investment attractive over long term

Shares of Cholamandalam Investment and Finance CHLA.NS rise 1.8% to 1,214.80 rupees

Shares of non-banking lender are down 26% over last 3 months vs a 9% drop in Nifty 50 .NSEI and a 5% fall in NSE Bank index .NSEBANK

J.P.Morgan says drop amid concerns of slowing macro and auto volumes with rural lending impacted due to unseasonal rains

While we remain cautious in near-term, correction offers favourable risk-reward to enter CHLA over medium-to-long term - J.P.Morgan

Says, CHLA's pan-India presence, diversified products offering positions it to deliver steady earnings

J.P.Morgan expects 26% FY25-27 earnings per share CAGR for CHLA, making current valuations reasonable

Maintains "overweight" with PT of 1,550 rupees, a 30% premium on last close

Average rating of 34 analysts covering stock is "buy"; their median PT is 1,530 rupees - LSEG data

(Reporting by Nishit Navin)

((nishit.navin@thomsonreuters.com;))