CreditAccess Grameen Shares Surge Over 12% As Q2 Profit Nearly Doubles
The company's standalone net profit rose 99.35% year-on-year to Rs 349.2 crore in the September quarter.
Shares of CreditAccess Grameen Ltd. rose over 12% on Monday after its second-quarter profit nearly doubled.
The company's standalone net profit rose 99.35% year-on-year to Rs 349.2 crore in the September quarter, according to an exchange filing. Total income rose 53.2% to Rs 1,247.6 crore.
CreditAccess Grameen Ltd.'s gross non-performing assets dived to 0.77% in the said quarter, compared to 2.17% in the quarter ended September of the previous fiscal, as per its investor presentation.
The company also added 51 new branches this quarter and entered Andhra Pradesh with eight new branches and Telangana with four branches in contiguous districts. It also raise Rs 990 crore via non-convertible debentures in the same quarter, with a coupon rate of 9.3% for three years.
Shares of the company rose as much as 12.38% to hit an all-time high, before paring gains to trade 7.70% higher at 10:35 a.m. This compares to a 0.34% decline in the NSE Nifty 50.
The stock has risen 63.8% on a year-to-date basis. Total traded volume so far in the day stood at 35 times its 30-day average. The relative strength index was at 74, implying that the stock may be overbought.
Of the 20 analysts tracking the company, 18 maintain a 'buy' rating and two recommend a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 11%.
