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HomeNewsBusinessBuy CreditAccess Grameen; target of Rs 1070: Motilal Oswal

Buy CreditAccess Grameen; target of Rs 1070: Motilal Oswal

Motilal Oswal is bullish on CreditAccess Grameen has recommended buy rating on the stock with a target price of Rs 1070 in its research report dated January 26, 2025.

January 28, 2025 / 14:32 IST
BUY

BUY

 
 
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Motilal Oswal's research report on CreditAccess Grameen

CreditAccess Grameen (CREDAG)’s 3QFY25 loss stood at INR995m (vs. MOFSLe PAT of INR1.3b). NII grew ~7% YoY to ~INR8.6b (~6% miss) and PPoP rose 4% YoY to ~INR6.2b (~6% miss). Cost-income ratio was stable at ~31% (PY: ~30% and PQ: ~31%). Reported yields declined ~90bp QoQ to ~20.2%, while CoF was stable QoQ at 9.8%. Reported NIM contracted ~100bp QoQ to ~12.5%, primarily because of interest income reversal of INR750m. We model NIMs of 14.0%/14.1% for FY26/FY27 (FY25E: ~14%)

Outlook

With a strong capital position (Tier-1 of ~25%), it is well-equipped to navigate the near-term disruption in the MFI sector and will embark on a healthy loan growth trajectory once there is higher confidence in the reversal of this delinquency trend. Reiterate BUY with a revised TP of INR1,070 (based on 1.8x Sep’26E P/BV).

For all recommendations report, click here

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CreditAccess Grameen_27012025_Motilal Oswal

Broker Research
first published: Jan 28, 2025 02:31 pm

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