- As of May 2, 2025, CreditAccess Grameen (CREDITACC) traded around ₹1,121–₹1,145, which is approximately 52% above its 52-week low of ₹750.20 (set in January 2025), but below its 52-week high of ₹1,551.95 (set in June 2024)[2][3].
- The stock has shown volatility over the past year, with a notable decline from its peak, reflecting both sector trends and company-specific events[2][3][4].
**Valuation and Financial Metrics**
- **P/E Ratio (TTM):** 20.3–21.2, indicating moderate valuation relative to earnings[2][3].
- **Book Value:** ₹438 per share, with the stock trading at about 2.6 times book value, which is considered on the higher side for the sector[3].
- **Dividend Yield:** Around 0.86–0.89%, with recent dividend payouts[2][3].
- **Return on Equity (ROE):** 24.8% (latest year), reflecting strong profitability[3].
- **Return on Capital Employed (ROCE):** 14.8%[3].
**Growth and Profitability**
- The company has delivered robust profit growth (35% CAGR over the last 5 years) and strong median sales growth (31.6% over 10 years)
- However, profit growth has turned negative in the trailing twelve months (-35%), primarily due to higher provisioning and write-offs in recent quarters
- The company reported a loss of ₹99.5 crore in Q3 FY25, mainly due to early risk recognition, conservative provisioning, and accelerated write-offs, but management expects this to safeguard future profitability as growth normalizes
**Operational Highlights**
- **Assets Under Management (AUM):** Grew by 6.1% YoY to ₹24,810 crore in Q3 FY25
- **Borrower Base:** Increased by 2.4% YoY to 48.05 lakh customers
- **Branch Network:** Expanded by 8.7% YoY to 2,059 branches
- **Collection Efficiency:** Remained robust at 93.3% (excluding arrears) and 94.1% (including arrears), with improving trends
- **Asset Quality:** PAR 90+ at 2.64%, NNPA at 1.28%, indicating some stress but manageable levels
- **Capital Adequacy:** CRAR at 25.9%, reflecting a strong capital position
**Strengths and Risks**
**Strengths:**
- Consistent long-term growth in profits and sales
- Strong capital position and liquidity buffer
- High collection efficiency and expanding branch network
**Risks/Concerns:**
- Recent decline in promoter holding (-7.42% over three years)
- Low interest coverage ratio, suggesting higher financial risk
- Elevated provisioning and write-offs impacting near-term profitability
- Stock is trading at a premium to book value, which may limit upside if growth slows
**Relative Performance**
- Over the past year, the stock is down 24%, underperforming the broader market, but over five years, it has delivered a 154% return, broadly in line with sector peers
- In the short term (last three months), the stock has rebounded by about 13% from its lows
## Summary
CreditAccess Grameen remains a leading NBFC-MFI with a strong track record of growth and profitability. While recent quarters have seen a dip in profits due to prudent risk management and provisioning, the company’s fundamentals-such as robust capital adequacy, liquidity, and operational scale-remain intact. The stock is moderately valued but carries risks related to asset quality and sector volatility. Investors should watch for normalization of growth and profitability in upcoming quarters, as indicated by management
- The stock has shown volatility over the past year, with a notable decline from its peak, reflecting both sector trends and company-specific events[2][3][4].
**Valuation and Financial Metrics**
- **P/E Ratio (TTM):** 20.3–21.2, indicating moderate valuation relative to earnings[2][3].
- **Book Value:** ₹438 per share, with the stock trading at about 2.6 times book value, which is considered on the higher side for the sector[3].
- **Dividend Yield:** Around 0.86–0.89%, with recent dividend payouts[2][3].
- **Return on Equity (ROE):** 24.8% (latest year), reflecting strong profitability[3].
- **Return on Capital Employed (ROCE):** 14.8%[3].
**Growth and Profitability**
- The company has delivered robust profit growth (35% CAGR over the last 5 years) and strong median sales growth (31.6% over 10 years)
- However, profit growth has turned negative in the trailing twelve months (-35%), primarily due to higher provisioning and write-offs in recent quarters
- The company reported a loss of ₹99.5 crore in Q3 FY25, mainly due to early risk recognition, conservative provisioning, and accelerated write-offs, but management expects this to safeguard future profitability as growth normalizes
**Operational Highlights**
- **Assets Under Management (AUM):** Grew by 6.1% YoY to ₹24,810 crore in Q3 FY25
- **Borrower Base:** Increased by 2.4% YoY to 48.05 lakh customers
- **Branch Network:** Expanded by 8.7% YoY to 2,059 branches
- **Collection Efficiency:** Remained robust at 93.3% (excluding arrears) and 94.1% (including arrears), with improving trends
- **Asset Quality:** PAR 90+ at 2.64%, NNPA at 1.28%, indicating some stress but manageable levels
- **Capital Adequacy:** CRAR at 25.9%, reflecting a strong capital position
**Strengths and Risks**
**Strengths:**
- Consistent long-term growth in profits and sales
- Strong capital position and liquidity buffer
- High collection efficiency and expanding branch network
**Risks/Concerns:**
- Recent decline in promoter holding (-7.42% over three years)
- Low interest coverage ratio, suggesting higher financial risk
- Elevated provisioning and write-offs impacting near-term profitability
- Stock is trading at a premium to book value, which may limit upside if growth slows
**Relative Performance**
- Over the past year, the stock is down 24%, underperforming the broader market, but over five years, it has delivered a 154% return, broadly in line with sector peers
- In the short term (last three months), the stock has rebounded by about 13% from its lows
## Summary
CreditAccess Grameen remains a leading NBFC-MFI with a strong track record of growth and profitability. While recent quarters have seen a dip in profits due to prudent risk management and provisioning, the company’s fundamentals-such as robust capital adequacy, liquidity, and operational scale-remain intact. The stock is moderately valued but carries risks related to asset quality and sector volatility. Investors should watch for normalization of growth and profitability in upcoming quarters, as indicated by management
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.