HDFC Securities' research report on CreditAccess Grameen
CreditAccess Grameen (CREDAG) sustained its strong operating performance across vectors, driven by steady AUM growth (+27% YoY), on the back of an uptick in disbursements (24% YoY, 48% QoQ), led by a balanced mix of new customer additions and higher ticket size, especially in the retail portfolio. Asset quality normalised with PAR-0/GNPA at 1.5%/1.2% and is likely to drive steady-state credit costs. CREDAG is poised to sustain a combination of strong growth (~25% AUM CAGR), low credit costs and sustained profitability in the medium term.
Outlook
We tweak our FY24E/FY25E earnings estimates for higher-thanexpected loan growth and maintain BUY, with a revised TP of INR1,280 (2.9x Mar-25 ABVPS). Our implied multiple reflects a snowball effect as a consistently conservative underwriting approach in an inherently risky business translates into high cross-cycle potential RoEs (>20%).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.