Buy CreditAccess Grameen; target of Rs 1600: ICICI Securities

ICICI Securities is bullish on CreditAccess Grameen has recommended buy rating on the stock with a target price of Rs 1600 in its research report dated January 21, 2026.

Broker Research

January 23, 2026 / 14:37 IST

Buy

ICICI Securities's research report on CreditAccess Grameen

CA Grameen’s (Grameen) Q3FY26 financial performance indicates faster-than-anticipated recovery, with collections nearing pre-disruption levels (X-Bucket CE at 99.71% in Dec’25) and a sharp revival in disbursements with 26% MoM growth in Dec’25 volume. Notably, fresh PAR 15+ accretion rate dropped to 18bps in Dec’25, largely driven by monthly PAR 15+ accretion in KTK falling to 13bps in Dec’25 vs. 34bps in Nov’25. Similarly, PAR 0+ fell to 4.4% vs. 4.7% in Sep’25. Notably, credit cost settled at 5.4% (adjusted credit cost at 3.9%), lowest in past six quarters, driven by sustained improvement in collections. AUM growth revived to 7% YoY / 2.6% QoQ (8% YoY / 3% QoQ adjusted for accelerated write-off).

Outlook

We upgrade to BUY (earlier Hold) with a revised TP of INR 1,600 (earlier INR 1,470), as we roll over to Mar’27E (Sep’26 earlier) and value the stock at 2.75x.

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