Chemmanur Credits and Investments Limited

Chemmanur Credits and Investments Limited (CCIL) is a non-deposit-taking Non-Banking Financial Company (NBFC - Base Layer) registered with the Reserve Bank of India. The company’s core business model is centered on high-yielding retail gold loans, providing credit against the pledge of household gold jewelry. Supported by the promoter’s extensive experience and the goodwill of the brand, the company has operated its financial services division successfully for over 14 years, serving as a trusted financial intermediary for under-banked retail customers. The company caters to a diverse client base consisting of self-employed professionals, salaried individuals, and micro, small, and medium enterprises (MSMEs) who lack immediate access to formal bank credit. Its operations target Tier-II and Tier-III cities across underserved regions. Geographically, the company is highly concentrated in Southern India; as of March 31, 2026, Kerala contributed 35.16% of the overall loan portfolio, followed closely by Andhra Pradesh at 30.34%, with remaining footprints in Tamil Nadu (16.77%), Karnataka (14.34%), Maharashtra (1.96%), and Telangana (1.43%). The business operates through a widespread network of 302 branches staffed by over 1,268 personnel. As a services-oriented financial intermediary, CCIL does not carry out any industrial manufacturing or raw material processing. Consequently, the company does not own or operate any manufacturing plants, factories, or assembly units, and traditional metrics such as "installed manufacturing capacity" and "capacity utilization" are entirely inapplicable to its business model. The company’s physical infrastructure consists strictly of its administrative offices, regional centers, and branch retail outlets equipped with secure vaults. The company employs robust operational standards, including real-time electronic surveillance systems, surprise internal audits, and comprehensive vault insurance to safeguard pledged collateral. Additionally, the company is expanding its portfolio in a calibrated manner by distributing insurance and micro-insurance products as a corporate agent, and offering minor exposures in microfinance loans (3.91% of AUM) and business loans (0.35% of AUM). As per financials, Chemmanur Credits and Investments Limited has shown exceptional profitability turnaround with its overall AUM expanding past Rs 790 Cr, RoNW is 14.20% and the Post-Issue P/E is 80.00x, 55.17x, and 6.87x respectively as per FY24, FY25, and FY26 earnings. So the issue looks attractively priced from both a valuation and coupon yield perspective. The company is a retail gold loan non-banking financial company offering products starting from small-ticket retail gold loans to business, microfinance, and insurance distribution services. So, we give a NEUTRAL rating for this NCD (specifically for the NCD debt issue due to its attractive interest coupon rates up to 12.00% p.a. and stable IND BBB credit rating). Readers must consult a qualified financial advisor prior to making any actual investment decisions.

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