Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by strategic diversification and digital transformation.
Basis of our Recommendation
CreditAccess Grameen is positioned for robust growth, targeting a 20-25% increase in AUM for FY27, driven by strategic diversification into retail finance and enhanced digital capabilities. Management's focus on operational efficiency and leveraging government support underpins a positive outlook, despite facing execution risks and inflationary pressures. The company's transition towards a more inclusive finance model under 'Project Shakti' aims to strengthen its market position and customer relationships.
Why We Like This Stock
- Targeting 20-25% AUM growth for FY27
- Strategic diversification into retail finance and non-MFI segments
- Enhanced digital capabilities improving customer engagement and operational efficiency
Things To Watch Out For
- Execution risks related to maintaining asset quality and regulatory compliance
- Inflationary pressures impacting borrower affordability and margins
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,429 | 3,797 | 4,160 | 4,855 | 5,672 |
| Profit Before Tax (Cr.) | 1,939 | 709 | 1,033 | 1,759 | 2,118 |
| PBT Margin | 56.5% | 18.7% | 24.8% | 36.2% | 37.3% |
| Net Profit (Cr.) | 1,395 | 320 | 790 | 1,338 | 1,611 |
| EPS | 87.1 | 20.0 | 49.3 | 83.5 | 100.5 |
Company Overview
Show Company Profile
CreditAccess Grameen Limited, a non-banking financial company, provides micro finance services for women from poor and low-income households in India. The company offers microcredit loans for income generation, home improvement, emergency, family welfare, and Grameen Unnati, as well as Grameen Suraksha, Grameen Sanchay, life insurance, and national pension schemes. It also provides retail finance loans, such as Grameen Vikas, Unnati loan, Grameen two-wheeler, and Grameen housing loan. In addition, the company offers digital lending products comprising Grameen Mahi, a customer app, Pragathi digital and multi-purpose digital loans. The company was formerly known as Grameen Koota Financial Services Private Limited and changed its name to CreditAccess Grameen Limited in January 2018. CreditAccess Grameen Limited was incorporated in 1991 and is headquartered in Bengaluru, India. CreditAccess Grameen Limited is a subsidiary of CreditAccess India BV.