Buy CreditAccess Grameen; target of Rs 1960: Emkay Global Financial

Emkay Global Financial is bullish on CreditAccess Grameen has recommended buy rating on the stock with a target price of Rs 1960 in its research report dated October 22, 2023.

Broker Research

October 24, 2023 / 19:53 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Emkay Global Financial's research report on CreditAccess Grameen

CREDAG maintained its strong earnings performance with in-line PAT at Rs3.5bn, up 98% YoY, and RoA of 5.6% on the back of strong growth (36% YoY) and margin expansion (+110bps YoY/10bps QoQ). Going ahead, CREDAG expects growth to remain strong led by expansion in customer-count and ticketsize. From the medium-term perspective, Company expects GLP CAGR at 24- 25%, NIM moderation to 12.6-12.7% from the current ~13%, and steady increase in LLP including counter-cyclical contingent provision build-up. Factoring-in the better growth trajectory and margin delivery, partly offset by higher provisions to build buffers, we raise our earnings for FY24-26E by 7- 15%.

Outlook

We retain BUY on the stock, with revised TP of Rs1,960/share (from Rs1,800), rolling forward on 3.4x Sep-25E ABV vs 3.5x Jun-25 ABV, given strong delivery on RoA/RoE at 5-6%/22-25% over FY24-26E, Management depth and better cross-cycle return metrics/asset-quality experience. CREDAG remains our preferred pick in the NBFC-MFI sector.

For all recommendations report, click here