CreditAccess Grameen Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 10032.12 Crore) operating in NBFC sector.
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Promoters held 79.9 per cent stake in the company as of June 30, 2020, while FIIs held 9 per cent, DIIs 5.6 per cent and public and others 5.5 per cent.
ICICI Securities has given a buy rating to CreditAccess Grameen with a target price of Rs 820. The share price moved down by 1.42 per cent from its previous close of Rs 708.30. The stock’s last traded price is Rs 698.25. CreditAccess Grameen Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 10032.12 Crore) operating in NBFC sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 619.29 Crore, up 28.56 % from last quarter Sales of Rs 481.71 Crore and unchanged .00 % from last year same quarter Sales of Rs Crore Company has reported net profit after tax of Rs 74.62 Crore in latest quarter.
Investment Rationale The brokerage believes CAGL would still deliver RoAuM in excess of 2.5% in FY21E even if it factors in credit cost at ~3% in FY21E and and normalising to >4% in FY22E. The stock is currently trading at 3.3x/2.7x FY21/22e BVPS, respectively. It maintains BUY with a revised TP of Rs820 (earlier: Rs700). Key risk remains delay in synergies from Madhura acquisition and higher-than-expected delinquency from current in-active customer base.
Promoter/FII Holdings Promoters held 79.9 per cent stake in the company as of June 30, 2020, while FIIs held 9 per cent, DIIs 5.6 per cent and public and others 5.5 per cent.
