CreditAccess Grameen, a company that gives small loans to people, is one of the small-cap companies doing extremely well. Importantly, they’re in a good place right now, and they think the microfinance industry is going to grow steadily at around 25% every year for the next 2-3 years. As of November 18, 2023, CreditAccess Grameen is trading at Rs. 1590 with a market cap of Rs. 25,530 Crore. The current PE ratio is 21.15. 52-week high and low is Rs. 1,745.95 and Rs. 834.10 respectively.
So, what does this mean for CreditAccess Grameen’s shares? What can we predict about where their prices are headed in the future? Let’s take a closer look at what the experts are saying and see what’s in store for the company’s shares.
About CreditAccess Grameen
CreditAccess Grameen is like a financial helper, officially approved by the Reserve Bank of India. Their main job is to provide small loans to groups of women who work together. These women support each other and get the financial help they need. Credit Access Grameen also offers different financial services to its members through its network.
This company takes care of a lot of money, around 16,599 crores as of March 2022. They divide this money into different parts: 79% goes to Income Generation Loans, 17% to MMFL Loans, 2.5% for Home Improvement Loans, and 1% for Retail Finance. And they help 38 lakhs of women with this money!
CreditAccess Grameen isn’t just in one place. They work in 319 districts across 14 states and one union territory in India. They have lots of branches and offices, 1,635 of them! In the year 2022, they opened 211 more branches to help people in new areas.
The company is using modern technology to make things easier. They give their people special tablets that help with things like signing up new customers, checking their identity quickly, and getting loans to people on the same day.
Furthermore, the company encountered a significant legal development when the High Court passed an order rejecting an income tax demand of Rs. 2,333 Crores for AY18-19, initially issued by the National Faceless Assessment Centre (NFAC). This order by the High Court of Karnataka remitted the case back to NFAC, marking a noteworthy step in the legal proceedings related to the organization’s financial matters.
CreditAccess Grameen Q2 FY 2024 Key Points And Summary:
- Customer Base Expansion: The company’s customer base grew significantly by 21.2% YoY and 4.1% QoQ, reaching a total of 46.03 lakh customers.
- Impressive AUM Growth: Credit Access Grameen achieved substantial growth in Assets Under Management (AUM). This growth included a remarkable 36% YoY increase and a 3.1% QoQ growth, totaling INR 22,488 Crore.
- Steady Disbursements: Disbursements increased by 13.5% YoY in Q2 FY24, reaching INR 4,966 Crore, indicating consistent lending activity.
- Robust Interest Income: The company experienced a strong growth in interest income, with a notable 53.9% YoY and 7.4% QoQ increase, amounting to INR 1,187 Crore.
- Cost of Borrowing: The average and margin cost of borrowing for Q2 FY24 were reported at 9.8% and 9.6%, respectively.
- Growing Operating Profitability: Credit Access Grameen continues to witness an increase in operating profitability, with net interest income growing by 49.6% YoY, reaching INR 772 Crore.
- Effective Credit Management: The company maintained an effective approach to credit management, with credit costs amounting to INR 96 Crore in Q2 FY24.
- Stable Collection Efficiency: Collection efficiency, excluding arrears, remained steady at a high level of 98.7%, indicating efficient debt recovery.
- Improved Asset Quality: Credit Access Grameen achieved a significant reduction in Gross Non-Performing Assets (GNPA) measured at 60 plus days past due (dpd), which decreased to a low 0.77%. This signifies an improved quality of the loan portfolio.
Recent News Around CreditAccess Grameen
- CreditAccess Grameen’s MD, Udaya Kumar Hebbar, Expects 20-25% CAGR Growth and Rs 50,000-crore AUM in the Next 5 Years, Citing Strong Regulatory Support. (23 Aug 2023)
- CreditAccess Grameen Achieves Record Q2 FY24 Net Profit of ₹347 Crore, Shares Soar to All-Time High. (23 Oct 2023)
- Promoters: Promoters used to own around 80.19% of the Credit Access Grameen company in March 2019. Over time, their ownership has decreased a bit, and as of September 2023, they hold about 66.69% of the company.
- FIIs (Foreign Institutional Investors): These are foreign investors who invest in the company. In March 2019, they owned about 7.58% of Credit Access Grameen, and their ownership has changed over the years. In September 2023, they hold around 11.46% of the company.
- DIIs (Domestic Institutional Investors): Their ownership has increased steadily from 5.54% in March 2019 to 15.78% in September 2023.
- Public: In March 2019, the public held about 6.69% of the company. While this percentage has fluctuated over the years, in September 2023, the public owns approximately 6.08% of Credit Access Grameen.
- No. of Shareholders: In September 2023, there were 51,172 shareholders.
In summary, over the years, there have been changes in the ownership of Credit Access Grameen. Promoters’ ownership has slightly decreased, while FIIs and DIIs have increased their stakes in the company. Moreover, The number of shareholders has also grown. This data helps us understand how different types of investors are involved with the company’s shares.
| When | Maximum Price | Minimum Price |
| November 2023 | ₹1,731.33 | ₹1,573.94 |
| December 2023 | ₹1,788.47 | ₹1,625.88 |
As 2023 is coming to an end, the expected share prices for Credit Access Grameen exhibit both highs and lows, reflecting potential fluctuations in the stock’s value. The maximum price for the year is projected to be ₹1,788.47, while the minimum price is anticipated to be ₹1,573.94. These figures provide investors with insights into the potential price range for the company’s shares throughout the year, helping them make informed decisions regarding their investments. It’s important to consider such price projections alongside other factors.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹1,824.97 | ₹1,586.93 |
| February 2024 | ₹1,862.21 | ₹1,619.31 |
| March 2024 | ₹1,900.22 | ₹1,652.36 |
| April 2024 | ₹1,844.87 | ₹1,604.23 |
| May 2024 | ₹1,817.61 | ₹1,580.53 |
| June 2024 | ₹1,883.04 | ₹1,637.43 |
| July 2024 | ₹1,864.21 | ₹1,621.05 |
| August 2024 | ₹1,938.78 | ₹1,685.89 |
| September 2024 | ₹2,016.33 | ₹1,753.33 |
| October 2024 | ₹1,976.79 | ₹1,718.95 |
| November 2024 | ₹2,036.10 | ₹1,770.52 |
| December 2024 | ₹2,087.00 | ₹1,814.78 |
In 2024, Credit Access Grameen’s share prices had their ups and downs, which can show that the market was a bit uncertain. The highest share price for the year was ₹2,087.00, and this happened in December, indicating that things might have been looking up at the end of the year. On the other hand, in May 2024, the share price dropped to ₹1,580.53, showing that there was a temporary decrease during that month.
This data points to a pattern of changing prices over the year. We saw prices go up at times and then come down. For instance, from September to November, the share price went from ₹1,753.33 to ₹2,036.10, showing a clear increase. This suggests that during that time, investors might have felt more positive. However, there were also moments like the drop in May, and this shows that the stock market can be quite uncertain. Many things can affect it, like how well the economy is doing, what people think about the market, and how the company itself is performing.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹2,128.74 | ₹1,637.49 |
| February 2025 | ₹2,183.32 | ₹1,679.48 |
| March 2025 | ₹2,268.47 | ₹1,744.98 |
| April 2025 | ₹2,223.99 | ₹1,710.76 |
| May 2025 | ₹2,159.21 | ₹1,660.93 |
| June 2025 | ₹2,256.38 | ₹1,735.68 |
| July 2025 | ₹2,212.14 | ₹1,701.64 |
| August 2025 | ₹2,280.55 | ₹1,754.27 |
| September 2025 | ₹2,360.37 | ₹1,815.67 |
| October 2025 | ₹2,421.74 | ₹1,862.88 |
| November 2025 | ₹2,482.29 | ₹1,909.45 |
| December 2025 | ₹2,544.34 | ₹1,957.19 |
In 2025, Credit Access Grameen’s share prices are set to display a distinctive pattern of fluctuations. Towards the end of the year, the maximum share price is expected to peak at ₹2,544.34, indicating potential growth during this period. Nevertheless, there will be occasional moments of decline, with the minimum share price foreseen at ₹1,637.49 in January 2025.
This data highlights the likelihood of varying share prices throughout the year, with periods of ascent followed by temporary drops. As investors, it’s crucial to take into account these projected price shifts and factor in other market conditions when making decisions. Keep in mind that the stock market is influenced by a multitude of factors, and the trends in prices may reveal market volatility and investor sentiment.
| Year | Maximum Price | Minimum Price |
|---|---|---|
| 2026 | ₹2,671.56 | ₹1,870.09 |
| 2027 | ₹2,938.72 | ₹2,057.10 |
| 2028 | ₹4,114.20 | ₹2,057.10 |
| 2029 | ₹3,562.08 | ₹1,781.04 |
| 2030 | ₹4,630.70 | ₹3,241.49 |
- In 2026, the maximum share price for Credit Access Grameen is projected to reach ₹2,671.56, while the minimum price is anticipated to be ₹1,870.09. This indicates the potential price range for the year, considering periods of growth and temporary declines.
- Moving on to 2027, the share prices are expected to show an upward trend, with a maximum price of ₹2,938.72 and a minimum of ₹2,057.10. This suggests overall positive sentiment among investors during the year.
- In 2028, the share prices are projected to exhibit significant growth, with a maximum of ₹4,114.20 and a minimum of ₹2,057.10. This substantial increase reflects strong market performance during this period.
- In 2029, the share prices are expected to range between ₹3,562.08 (maximum) and ₹1,781.04 (minimum).
- Finally, in 2030, the share prices are projected to reach a maximum of ₹4,630.70 and a minimum of ₹3,241.49, suggesting a relatively steady market with modest fluctuations.
Investors should carefully consider these expected trends in each year, along with other relevant factors, to make informed investment decisions based on the prevailing market conditions and sentiment.
Credit Access Grameen Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Revenue (Crore Rs.) |
1,282 | 1,683 | 2,028 | 2,669 | 3,487 |
| Interest (Crore Rs.) |
417 | 575 | 745 | 987 | 1,216 |
| Expenses + (Crore Rs.) |
361 | 639 | 1,069 | 1,235 | 1,179 |
| Financing Profit (Crore Rs.) |
504 | 470 | 214 | 447 | 1,092 |
| Financing Margin % | 39% | 28% | 11% | 17% | 31% |
| Other Income + (Crore Rs.) |
1 | 1 | 3 | 81 | 64 |
| Depreciation (Crore Rs.) |
8 | 20 | 23 | 47 | 50 |
| Profit before tax (Crore Rs.) |
498 | 451 | 194 | 481 | 1,105 |
| Tax % | 35% | 27% | 27% | 27% | 25% |
| Net Profit + (Crore Rs.) |
322 | 328 | 142 | 353 | 826 |
| EPS in Rs | 22.41 | 22.75 | 9.15 | 22.65 | 52.87 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
- Revenue Growth: Credit Access’s revenue has been steadily increasing from ₹1,282 crore in March 2019 to ₹3,487 crore in March 2023. This reflects a positive revenue growth trend, indicating an expanding business.
- Interest Expenses: The interest expenses, which represent the cost of borrowing, have also grown over the years. It signifies that the company is using borrowed funds to support its operations.
- Operating Expenses: Operating expenses have had some fluctuations. It’s noteworthy that in March 2023, they decreased to ₹1,179 crore compared to the previous year. This might indicate efficient cost management.
- Financing Profit: The financing profit, has notably increased, reaching ₹1,092 crore in March 2023. This reflects an improved financial performance.
- Other Income: Other income for Credit Access, which typically remained at lower levels, experienced variations. However, there was a notable increase in March 2023, with other income reaching ₹64 crore. This significant surge may suggest the emergence of additional income sources or potentially one-time gains during that period.
- Depreciation: Depreciation expenses have been increasing steadily, indicating the wear and tear on company assets.
- Tax Percentage: The tax rate has remained stable at around 27% to 35% during the years, signifying consistent tax management.
- Net Profit: Credit Access’s net profit has grown from ₹322 crore in March 2019 to ₹826 crore in March 2023, demonstrating a positive trend in profitability.
- Earnings per Share (EPS): Additionally, The EPS has significantly increased from ₹22.41 in March 2019 to ₹52.87 in March 2023, showing improved earnings for each share.
- Dividend Payout: Credit Access hasn’t paid out any dividends during this period. This possibly indicates that they are reinvesting profits for growth.
Credit Access Grameen has displayed strong revenue growth, improved financing profitability, and a healthy margin. The increase in EPS reflects a positive outlook for shareholders. However, it’s important to consider that some figures, like other income, have shown fluctuations, and the company hasn’t paid dividends, suggesting a focus on reinvestment.
FAQs
What Is the Market Value of CreditAccess Grameen?
The market capitalization of Credit Access Grameen is ₹25,539 Crores.
What Is CreditAccess Grameen’s ROE?
Credit Access Grameen’s Return on Equity (ROE) currently stands at 17.8%.
In the year 2025, the target share prices for Credit Access Grameen are expected to range from ₹1,637.49 to ₹2,544.34.
The target share price for Credit Access Grameen in the year 2030 is projected to range between ₹3,241.49 and ₹4,630.70.
Also read:
- SBI Cards Share Price Target 2024 to 2030
- Tata Elxsi Share Price Target 2024 to 2030
- Cams India Share Price Target 2024 to 2030
Should One Invest In CreditAccess Grameen?
Investing in Credit Access Grameen can be an attractive opportunity, given several positive aspects. The company has reported a remarkable 31.2% CAGR profit growth over the last five years, indicating a strong financial performance. Additionally, the median sales growth of 31.6% over the past decade highlights the company’s consistent ability to expand its business.
Moreover, the company’s expectation of delivering a good quarter, along with its strong financial performance, reflects a promising outlook for potential investors. The market capitalization of ₹27,219 Cr. indicates that Credit Access Grameen is a well-established player in the industry.
However, it’s essential to consider some factors when contemplating an investment. The stock is currently trading at 4.63 times its book value, which may imply that it is relatively more expensive compared to its asset value. The absence of dividend payments could be a drawback for income-oriented investors.
Furthermore, the company’s return on equity (ROE) has been on the lower side, averaging 11.3% over the last three years. While this may indicate room for improvement, it’s important to note that the ROE has shown an upward trend.
Additionally, the decrease in promoter holding by 13.2% over the past three years might raise questions about the level of commitment from the company’s promoters.
In conclusion, investing in Credit Access Grameen offers potential for growth, given its strong financial performance and market position. However, investors should carefully weigh the stock’s valuation, the absence of dividends, and the evolving ROE against the positive indicators. It is advisable to conduct thorough research and consider personal investment goals and risk tolerance before making an investment decision.
What did we learn?
- 1 About CreditAccess Grameen
- 2 CreditAccess Grameen Q2 FY 2024 Key Points And Summary:
- 3 Recent News Around CreditAccess Grameen
- 4 CreditAccess Grameen Shareholding Pattern Analysis
- 5 CreditAccess Grameen Share Price Target 2023 To 2030
- 6 Credit Access Grameen Financial Condition (Last 5 Years)
- 7 FAQs
- 8 Should One Invest In CreditAccess Grameen?
