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CreditAccess Grameen's Valuations Attractive Says Motilal Oswal — Check Rating, Target Price

As credit costs normalise and earnings visibility brightens, the brokerage sees scope for gradual rerating.

CreditAccess Grameen's Valuations Attractive Says Motilal Oswal — Check Rating, Target Price
CreditAccess is transitioning from a stress-recovery phase to a structurally stronger growth trajectory.
(Photo: Radhakisan Raswe/ NDTV Profit)
STOCKS IN THIS STORY
CreditAccess Grameen Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

CreditAccess Grameen Ltd. is transitioning from a stress-recovery phase to a structurally stronger growth trajectory, supported by retail-led diversification, margin resilience, and embedded risk discipline, according to Motilal Oswal.

The brokerage models an assets under management/net interest income/pre-provision operating profit/net profit of 21%/16%/13%/50% over FY26-28E with an RoA/ RoE of ~4.5%/17.5% by FY28E.

At ~2.3x FY27E P/BV and ~14x FY27E P/E, CreditAccess's valuations remain reasonable relative to the medium-term RoE potential of ~17-18%.

As credit costs normalise and earnings visibility brightens, the brokerage sees scope for gradual rerating and reiterates its Buy rating with a target price of Rs 1,600 (premised on 2.4x Dec'27E book value per share).

Click on the attachment to read the full report:

Hdc Securities Creditaccess Grameen Update.pdf
VIEW DOCUMENT

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