CreditAccess Grameen Shares At Record High After Reporting Its Highest Q4, FY23 Profit

Shares of CreditAccess Grameen Ltd. hit record high after its highest-ever fourth-quarter profit beat analysts' estimates.

The company reported its highest ever quarterly net profit, up 86.4% year-on-year to Rs 296.60 crore, according to an exchange filing. It beat the consensus analyst estimates pooled by Bloomberg, which stood at Rs 244.95 crore.

The profit for FY23 also rose 134% year-on-year to Rs 826 crore, a record high for the company.

The company's net interest income rose by 32.7% year-on-year to Rs 689.90 crore in the fourth quarter. This compares with the revenue of the same period in the previous fiscal, which stood at Rs 519.6 crore, according to its exchange filing.

Apart from this, CreditAccess Grameen's gross load portfolio also grew by 26.7% year-on-year to Rs 21,031 crore, as compared to Rs 16,599 crore in FY22.

The company also announced that it became the first-ever pure-play microfinance institution to cross the Rs 20,000 crore portfolio mark.

CreditAccess Grameen Q4 (Consolidated)

• Net interest income rose 32.7% YoY to Rs 689.90 crore.

• Net profit is up 86.4% YoY at Rs 296.60 crore. (Bloomberg estimate: Rs 244.95 crore.)

• Gross non-performing assets ratio at 1.21% vs. 1.71% (QoQ).

• Net non-performing assets ratio at 0.42% vs. 0.59% (QoQ).

Shares of CreditAccess Grameen gained 6.28% to Rs 1.154.05 apiece, compared to a 0.31% decline in the benchmark NSE Nifty 50 as of 10:45 a.m.

The stock rose as much as 9.97% intraday, the most in over five weeks since April 10, 2021. The scrip hit an record high at Rs 1,183.3 apiece in trade, since listing. Total traded volume stood at 21.8 times its 30-day average. The relative strength index was at 82, implying that the stock may be overbought.

Out of the 16 analysts tracking the company, 15 maintain a 'buy' rating and one recommends a 'hold' on the stock, according to Bloomberg data.

The average calculated from the 12-month price target given by analysts implies a potential upside of 12.8%.