CreditAccess Grameen Q4 Review: Normalization In Growth, Credit Costs Expected In H2 FY26 - Motilal Oswal

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).

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.'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).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.