⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CREDITACC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | CREDITACC | Market Cap | 19,024 Cr. | Current Price | 1,188 ₹ | High / Low | 1,497 ₹ |
| Stock P/E | 39.2 | Book Value | 448 ₹ | Dividend Yield | 0.00 % | ROCE | 9.55 % |
| ROE | 7.86 % | Face Value | 10.0 ₹ | DMA 50 | 1,257 ₹ | DMA 200 | 1,267 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | -0.10 % | PAT Qtr | 252 Cr. | PAT Prev Qtr | 126 Cr. |
| RSI | 43.3 | MACD | -30.4 | Volume | 3,39,057 | Avg Vol 1Wk | 2,64,392 |
| Low price | 860 ₹ | High price | 1,497 ₹ | PEG Ratio | 2.68 | Debt to equity | 2.81 |
| 52w Index | 51.5 % | Qtr Profit Var | 353 % | EPS | 30.3 ₹ | Industry PE | 23.8 |
📊 Core Financials
- Revenue Growth: Strong PAT jump (₹252 Cr vs ₹126 Cr), but sustainability uncertain
- Profit Margins: EPS ₹30.3, moderate profitability
- Debt Ratio: High leverage (Debt-to-Equity 2.81)
- Cash Flows: Supported by recent profit surge, but debt burden is heavy
- Return Metrics: ROCE 9.55%, ROE 7.86% — below industry standards
💹 Valuation Indicators
- P/E Ratio: 39.2 (well above industry PE of 23.8, overvalued)
- P/B Ratio: ~2.65 (reasonable valuation)
- PEG Ratio: 2.68 (growth priced expensively)
- Intrinsic Value: Current price ₹1,188 is closer to lower band (₹860), offering cautious entry
🏢 Business Model & Competitive Advantage
- NBFC focused on retail lending and credit access
- High growth potential in underserved markets
- Heavy debt load reduces financial flexibility
- No dividend yield, reinvestment strategy focused on expansion
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹1,050–₹1,150 range (near support levels)
- Long-Term Holding: Risky due to high debt and stretched valuation
- Guidance: Suitable only for aggressive investors seeking exposure to NBFC growth
✅ Positive
- Quarterly PAT growth of 353% (₹126 Cr → ₹252 Cr)
- Strong market presence in credit access and retail lending
- 52-week index gain of 51.5% shows investor interest
⚠️ Limitation
- High debt-to-equity ratio (2.81) raises financial risk
- ROE and ROCE are weak compared to peers
- Valuation premium with P/E above industry average
📰 Company Negative News
- Decline in FII holdings (-0.61%) and DII holdings (-0.10%)
- Stock trading below DMA 50 & DMA 200, showing weak momentum
🌟 Company Positive News
- Massive PAT growth in latest quarter
- Strong EPS improvement supports valuation
🏦 Industry
- NBFC sector with strong demand for retail credit
- Industry PE at 23.8, CREDITACC trades above this, showing premium valuation
- Sector growth supported by financial inclusion initiatives
🔎 Conclusion
- CREDITACC shows strong profit momentum but weak efficiency metrics
- High debt and premium valuation limit near-term upside
- Entry near ₹1,050–₹1,150 is favorable only for high-risk investors
- Best suited for speculative portfolios, not conservative long-term holdings