CREDITACC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

💳 Fundamental Analysis: CreditAccess Grameen Ltd (CREDITACC) Fundamental Rating: 3.3

📊 Core Financial Overview

Earnings & Growth

EPS: ₹12.2 ➜ moderate earnings base

PAT dipped 84.9% QoQ ➜ sharp fall, likely due to provisioning or seasonal effects

Returns

ROE: 7.86%, ROCE: 9.55% ➜ subdued efficiency levels

Leverage & Dividend

Debt-to-equity: 2.94 ➜ heavily leveraged — typical for NBFC/MFI business models

Dividend Yield: 0.81% ➜ token income payout

💰 Valuation Metrics

Metric Value Observation

P/E Ratio 102 very rich valuation — well above industry avg (55.3)

P/B Ratio ~2.84 (₹1,238 / ₹436) ➜ reasonable for financial firms

PEG Ratio 6.99 growth already priced in; indicates caution

📉 Verdict: Premium pricing suggests market expects strong long-term growth, but near-term fundamentals don't justify current valuations.

🧬 Business Model & Strategic Positioning

Operates as a microfinance institution focused on rural and underserved segments

Loan portfolio geared toward women entrepreneurs and self-help groups

Competitive Moats

Deep rural penetration

High customer retention through community linkages

Tech-driven collections and data monitoring systems

📍 Key Risks

High credit cycle sensitivity

Elevated leverage structure

Regulatory intervention vulnerability

📈 Ownership & Market Sentiment

FII Holding ↑ 0.75% ➜ mild foreign confidence building

DII Holding ↑ 0.09% ➜ neutral institutional stance

📉 Technical Picture

RSI: 45.7 ➜ neutral zone — no strong directional bias

MACD: +21.4 ➜ uptrend gathering pace

Trading near DMA 50 & above DMA 200 ➜ supportive medium-term strength

✅ Suggested Entry Zone: ₹1,150–₹1,200 📌 Prefer entry on pullback; current price looks elevated in relation to fundamentals

📈 Long-Term Investment Outlook

📌 Proxy to India’s financial inclusion agenda

🌱 Scalable model if managed prudently — strong upside during macro recovery

📊 Ideal for investors with a high risk appetite seeking exposure to grassroots credit growth

⚠️ Conservative portfolios should be wary of valuation excess and operational volatility. Watch next 2–3 quarters for earnings stabilization.

Want me to map CreditAccess against peers like Ujjivan Small Finance or Spandana Sphoorty to see who's punching above their weight? I’ve got just the snapshot for that.

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