CREDITACC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | CREDITACC | Market Cap | 20,828 Cr. | Current Price | 1,300 ₹ | High / Low | 1,497 ₹ |
| Stock P/E | 42.9 | Book Value | 448 ₹ | Dividend Yield | 0.00 % | ROCE | 9.55 % |
| ROE | 7.86 % | Face Value | 10.0 ₹ | DMA 50 | 1,239 ₹ | DMA 200 | 1,256 ₹ |
| Chg in FII Hold | 1.26 % | Chg in DII Hold | -0.64 % | PAT Qtr | 252 Cr. | PAT Prev Qtr | 126 Cr. |
| RSI | 65.9 | MACD | 17.5 | Volume | 5,23,799 | Avg Vol 1Wk | 3,62,259 |
| Low price | 1,066 ₹ | High price | 1,497 ₹ | PEG Ratio | 2.94 | Debt to equity | 2.81 |
| 52w Index | 54.3 % | Qtr Profit Var | 353 % | EPS | 30.3 ₹ | Industry PE | 26.5 |
📊 CreditAccess Grameen (CREDITACC) shows strong short-term earnings momentum with quarterly PAT growth (252 Cr vs 126 Cr, +353%). EPS of ₹30.3 supports earnings visibility, and price action remains above both 50 DMA (1,239 ₹) and 200 DMA (1,256 ₹). However, efficiency metrics are weak with ROE (7.86%) and ROCE (9.55%), while debt-to-equity (2.81) highlights high leverage risk. Valuation is stretched with P/E (42.9) compared to industry average (26.5) and PEG ratio (2.94), limiting growth-adjusted comfort.
🎯 Entry Zone: 1,220 ₹ – 1,240 ₹ (near 200 DMA support)
📌 Long-Term Holding: Suitable for medium-to-long term accumulation with disciplined exposure. Strong earnings momentum supports near-term upside, but high leverage and stretched valuations require cautious monitoring.
Positive
- Quarterly PAT surged (+353%), showing strong earnings momentum.
- EPS of ₹30.3 supports earnings visibility.
- Price trading above 50 DMA and near 200 DMA support.
- FII holdings increased (+1.26%), reflecting foreign investor confidence.
Limitation
- High debt-to-equity (2.81) increases financial risk.
- Low ROE (7.86%) and ROCE (9.55%) highlight weak efficiency.
- Stretched P/E (42.9) vs industry average (26.5).
- PEG ratio (2.94) suggests limited growth-adjusted value.
- No dividend yield, reducing investor income appeal.
Company Negative News
- No major negative news reported; valuation and leverage remain primary concerns.
Company Positive News
- Strong quarterly profit growth (+353%).
- Momentum indicators (RSI 65.9, MACD 17.5) show bullish sentiment.
- FII inflows support confidence in growth trajectory.
Industry
- Industry P/E at 26.5 is lower than CREDITACC’s P/E (42.9), showing premium valuation.
- Microfinance sector remains growth-oriented, supported by rural credit demand.
Conclusion
⚡ CREDITACC is a momentum-driven stock with strong short-term earnings growth but weak efficiency and high leverage. Entry around 1,220–1,240 ₹ offers better valuation comfort. Long-term holding is justified only with disciplined exposure, as upside depends on sustained earnings growth and improved efficiency metrics.
This HTML report highlights CREDITACC’s strong momentum but stretched valuations and leverage risks. If you’d like, I can prepare a peer benchmarking overlay against other microfinance and NBFC players like Ujjivan or Spandana to show relative positioning. Would you like me to build that next?