Buy CreditAccess Grameen, target price Rs 1130: Rajesh Palviya

Rajesh Palviya of Axis Securities has buy call on CreditAccess Grameen with a target price of Rs 1130. The current market price of CreditAccess Grameen is Rs 1044.9. Rajesh Palviya recommended to keep stop loss at Rs 990.

CreditAccess Grameen, incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 16382.39 Crore) operating in NBFC sector.

CreditAccess Grameen key Products/Revenue Segments include Interest, Income From Sale Of Share & Securities, Other Services and Fees & Commission Income for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 909.72 Crore, up 11.72 % from last quarter Total Income of Rs 814.31 Crore and up 31.90 % from last year same quarter Total Income of Rs 689.69 Crore. Company has reported net profit after tax of Rs 216.75 Crore in latest quarter.

The company’s top management includes Mr.George Joseph, Mr.Udaya Kumar Hebbar, Ms.Sucharita Mukherjee, Mr.Manoj Kumar, Ms.Jessie Paul, Mr.Sumit Kumar, Mr.Massimo Vita, Mr.Paolo Brichetti, Ms.Rekha Gopal Warriar. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2023, the company has a total of 16 Crore shares outstanding.

Investment Rationale
Weekly “multiple resistance” breakout at 1,015, rising volumes, sustaining above key SMAs.

Promoter/FII Holdings
Promoters held 73.68 per cent stake in the company as of 31-Mar-2023, while FIIs owned 9.67 per cent, DIIs 12.27 per cent.