Buy CreditAccess Grameen; target of Rs 1850: KR Choksey

KR Choksey is bullish on CreditAccess Grameen has recommended buy rating on the stock with a target price of Rs 1850 in its research report dated May 14, 2024.

Broker Research

May 15, 2024 / 14:58 IST

buy

26 Aug, 2025 12:21

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KR Choksey's research report on CreditAccess Grameen

Net Interest Income (NII) for Q4FY24 increased by 33.6% YoY (+14.9% QoQ) to INR 9,219 Mn. NII was higher by 4.7% than our estimates, led by the lower-than-expected cost of borrowings. CreditAccess Grameen reported a healthy performance where the core operating profits were better than our estimates. The Pre-Provisioning Operating Profits (PPOP) grew by 35.8% YoY and 13.5% QoQ to INR 6,828 Mn in Q4FY24. The NBFC registered a net profit of INR 3,971 Mn in Q4FY24. This represents a growth of 33.9% YoY (+12.4% QoQ). Healthy operating performance led to robust earnings growth. The net profit was 1.1% higher than our estimates.

Outlook

We have adjusted our P/ABV multiple to 2.8x from 3.0x to reflect the anticipated increase in credit costs in FY25E/FY26E, as indicated by the management. We, accordingly, revise our target price to INR 1,850/share with an upside of 32.0% over the CMP and maintain our “BUY” rating.

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