CreditAccess trades at 2.0x FY27E price/book value and its premium valuations over its MFI peers will sustain, given higher confidence in its ability to bounce back to normalcy, much ahead of its peers. Reiterate Buy with a revised target price of Rs 1,425 (based on 2.4x Mar’27E P/BV).
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Motilal Oswal Report
CreditAccess Grameen Ltd.’s Q4 FY25 PAT stood at Rs 472 million (estimate Rs 698 million). FY25 PAT declined ~63% YoY to Rs 5.3 billion. Q4 net interest income was flat YoY at ~Rs 8.8 billion (in line). Pre-provision operating profit declined ~7% YoY to Rs 6.3 billion (~7% miss). Cost-income ratio rose ~50 bp QoQ to ~31.8% (previous year:~30% and previous quarter: ~31.3%).
Reported yields rose ~20 bp QoQ to ~20.4% (because of lower interest income reversals) and cost of fund was stable QoQ at 9.8%. Reported NIM expanded ~20bp QoQ to ~12.7%. We model NIMs of 14.5% in FY26/FY27 each (vs ~14.6% in FY25).
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Also Read: Hyundai Motor India Q4 Review: Motilal Oswal Maintains 'Buy' On Premiumization Trend, New Launches
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