⚠ 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: 3.4
| Stock Code | CREDITACC | Market Cap | 20,420 Cr. | Current Price | 1,273 ₹ | High / Low | 1,497 ₹ |
| Stock P/E | 42.1 | Book Value | 448 ₹ | Dividend Yield | 0.00 % | ROCE | 9.55 % |
| ROE | 7.86 % | Face Value | 10.0 ₹ | DMA 50 | 1,315 ₹ | DMA 200 | 1,276 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | -0.10 % | PAT Qtr | 252 Cr. | PAT Prev Qtr | 126 Cr. |
| RSI | 46.2 | MACD | 0.67 | Volume | 1,78,483 | Avg Vol 1Wk | 9,18,259 |
| Low price | 848 ₹ | High price | 1,497 ₹ | PEG Ratio | 2.88 | Debt to equity | 2.81 |
| 52w Index | 65.6 % | Qtr Profit Var | 353 % | EPS | 30.3 ₹ | Industry PE | 25.5 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT surged from 126 Cr. to 252 Cr. (353% growth), but sustainability remains uncertain.
- Profit Margins: ROE at 7.86% and ROCE at 9.55% are modest, reflecting average efficiency.
- Debt Ratios: Debt-to-equity at 2.81 indicates high leverage, raising financial risk.
- Cash Flows: Dividend yield at 0.00% shows no direct shareholder return, with focus on reinvestment.
💹 Valuation Indicators
- P/E Ratio: 42.1 vs Industry PE of 25.5, suggesting overvaluation relative to peers.
- P/B Ratio: Current Price 1,273 ₹ / Book Value 448 ₹ ≈ 2.84, moderate valuation.
- PEG Ratio: 2.88, indicating growth is priced expensively.
- Intrinsic Value: Estimated fair value around 1,050–1,100 ₹, making current price slightly overvalued.
🏢 Business Model & Competitive Advantage
- CreditAccess Grameen operates in microfinance, focusing on rural lending and financial inclusion.
- Competitive advantage lies in strong rural network, customer base, and government-backed financial inclusion initiatives.
- High leverage is typical in NBFCs, but it increases risk during economic downturns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,050–1,100 ₹, closer to intrinsic value.
- Long-Term Holding: Suitable for investors seeking exposure to microfinance growth, but high debt and valuation warrant cautious entry.
✅ Positive
- Strong quarterly PAT growth (353%).
- Extensive rural presence and financial inclusion focus.
- Moderate P/B ratio compared to peers.
⚠️ Limitation
- High debt-to-equity ratio (2.81) increases financial risk.
- P/E ratio significantly above industry average.
- ROE and ROCE relatively modest, limiting efficiency.
📉 Company Negative News
- Decline in FII holding (-0.61%) and DII holding (-0.10%) shows reduced institutional confidence.
- High leverage raises concerns about sustainability in volatile markets.
📈 Company Positive News
- Quarterly PAT doubled sequentially, showing strong operational performance.
- Stock trading near DMA 200, indicating technical support zone.
🏭 Industry
- NBFC/microfinance industry PE at 25.5, lower than CreditAccess’s 42.1, suggesting relative overvaluation.
- Industry growth supported by government initiatives for rural financial inclusion.
🔎 Conclusion
- CreditAccess Grameen shows strong profit growth but suffers from high leverage and modest efficiency ratios.
- Valuation is stretched compared to industry peers, making current levels risky for fresh entry.
- Best suited for long-term investors with cautious entry around 1,050–1,100 ₹; accumulation strategy recommended for exposure to rural microfinance growth.
I can also map out risk scenarios under rising interest rates to show how CreditAccess’s high leverage could impact future profitability. Would you like me to add that?