CreditAccess Grameen Ltd - Stock Valuation and Financial Performance

BSE: 541770 | NSE: CREDITACC | Finance - NBFC | Small Cap

CreditAccess Grameen Share Price

1,079.95 12.05 1.13%
as on 31-Jan'25 13:53

DeciZen - make an informed investing decision on CreditAccess Grameen

Overall Rating
Bole Toh

1. Quality

2. Valuation

Undervalued

3. Price Trend

CreditAccess Grameen stock performance -

P/E Ratio (SA):
19.34
Market Cap:
17,044 Cr.
52-wk low:
750.1
52-wk high:
1,660

Is CreditAccess Grameen Ltd an attractive stock to invest in?

1. Is CreditAccess Grameen Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that CreditAccess Grameen Ltd is a good quality company.

2. Is CreditAccess Grameen Ltd undervalued or overvalued?

The key valuation ratios of CreditAccess Grameen Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.

3. Is CreditAccess Grameen Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of CreditAccess Grameen Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of CreditAccess Grameen:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
CreditAccess Grameen Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Operating Income (₹ Cr.)
2684577028711,2821,6832,0282,7433,5455,1675,770
YoY Gr. Rt. %
-70.4%53.6%24.1%47.3%31.3%20.5%35.3%29.3%45.7%-
Adj EPS (₹ )
6.811.58.816.522.422.79.222.75290.755.2
YoY Gr. Rt. %
-69.3%-23.5%88.4%35.5%1.5%-59.8%147.5%129.5%74.5%-
BVPS (₹ )
51.763.280.5111.5164.1184.8233.1266.6320.2410.3431.6
YoY Gr. Rt. %
-22.2%27.3%38.6%47.2%12.6%26.2%14.4%20.1%28.2%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)
3.63.72.44.953.51.22.34.15.50

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income38.9%32.1%36.6%45.7%
Adj EPS33.4%32.3%114.8%74.5%
BVPS25.9%20.1%20.7%28.2%
Share Price - 6.1% 19.8% -32.1%

Key Financial Ratios

RATIOS \ YEARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)
0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%)
0000000000-
Margins
Net Profit Margin (%)
18.418.310.724.425.119.5712.923.32815.3
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)
16.92013.1201713.14.59.117.924.912.8

Recent Performance Summary

Total Income has increased 36.58 CAGR in last 3 years

Net Profit has increased 114.83 CAGR in last 3 years

Return on Equity has declined versus last 3 years average to 13.10%

Total income growth is poor in last 4 quarters

Latest Financials - CreditAccess Grameen Ltd.

Standalone Consolidated
TTM EPS (₹) 55.2 55.2
TTM Sales (₹ Cr.) 5,770 5,770
BVPS (₹.) 431.6 431.6
Reserves (₹ Cr.) 6,729 6,729
P/BV 2.47 2.47
PE 19.34 19.34
From the Market
52 Week Low / High (₹) 750.05 / 1659.95
All Time Low / High (₹) 245.75 / 1794.40
Market Cap (₹ Cr.) 17,044
Equity (₹ Cr.) 159.6
Face Value (₹) 10
Industry PE 27

Quarterly Results

 Mar'24 YoY Gr. Rt. %Jun'24 YoY Gr. Rt. %Sep'24 YoY Gr. Rt. %Dec'24 YoY Gr. Rt. %
Operating Income1,444 37.81,504 29.91,446 17.11,375 7.3
Adj EPS (₹)24.91 33.524.95 14.511.67 -46.8-6.24 -128.1
Net Profit Mgn %27.24 -59 bps26.30 -330 bps12.80 -1521 bps-7.21 -3456 bps

Management X-Ray of CreditAccess Grameen:

Shareholding Pattern

JavaScript chart by amCharts 3.21.5
JavaScript chart by amCharts 3.21.5Promoters:66.5%Institutions:23.93%Non-Institutions:9.57%

Promoter's Holding & Share Pledging

JavaScript chart by amCharts 3.21.5Sep22Dec22Mar23Jun23Sep23Dec23Mar24Jun24Sep24Dec240%20%40%60%80%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Valuation of CreditAccess Grameen

MRP
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MOS
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DP
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Base BVPS
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DPS
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MRP: ₹ 0
DP: ₹0
Base BVPS ₹:
DPS ₹:
MOS (%):
Save my Valuation
Expected BVPS Growth Rate:
0%
Base 0%
30%
Expected Rate of Return:
0%
Base 0%
30%
Future PBV:
0
Base 0
40
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max

Event Update

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Analyst's Notes

CreditAccess Grameen: Q4FY23 Result Update - 19 May 2023

 

 

Q4FY23

% Change YoY

Comments

Advances

21,031

26.7%

 

Net Interest Income (NII)

690

34.2%

NIM at 12.2%

Gross Non-Performing Asset (GNPA)

1.21%

-170 bps

 

Profit after tax (PAT)

296

86%

 

Solid set of results with improving metrics on all paramters.

 

Intiating Coverage: CreditAccess Grameen Ltd - 16 Mar 2023

CreditAccess Grameen Limited: Initiating Coverage

About the Company:

CreditAccess Grameen Limited is a registered NBFC - Microfinance Institution with the RBI, engaged in providing microfinance services to women who are enrolled as members and organized as Joint Liability Groups.Its primary focus is to provide income generation loans to its customers in rural areas, while also providing other categories of loans such as family welfare loans, home improvement loans and emergency loans to its existing customers.

Micro-Finance Industry overview:

Indian MFI industry comprises of various entities serving the bottom of the pyramid including Non-Banking Financial Companies - Micro Finance Institutions (NBFC-MFIs), Banks, Small Finance Banks (SFBs), NBFCs, and non-profit MFIs. At the end of Sept 2022, the Indian microfinance industry’s total gross loan portfolio (GLP) stood at 300,974 Cr, with 6.2 Cr unique borrowers which has crossed only one-third of market penetration. The NBFC-MFI segment accounted for 35.2% of the universe portfolio. The urban-rural mix reveals that over 45% of the urban market has been penetrated while the rural market has merely crossed 25-30% levels, providing huge opportunity for MFI to provide credit to underserved segment.

Micro Finance Credit & Borrowers

MF loan ticket size for the industry has grown by 23% from INR 39,286 to INR 48,544 per unique borrower between Mar20 to Sept22.

Source: MFIN

Financials:

 

FY22

FY21

Advances

15,466.3 Cr

11,011.2 Cr

Net Interest Income

1527.68 Cr

1755.40 Cr

PAT

357.10 Cr

131.40 Cr

Deposits

14,050.4 Cr

12,135.7 Cr

Branches

1,635

1,424

 

CreditAccess (CA) is the largest NBFC-MFI in India, has been able to grow loan book at 35.2% over FY18-22 period. CA has strategically grown its branch network & employee count in rural India which is relatively underpenetrated. CA market share across its top four states of business operations was 24.3% in Karnataka, 16.3% in Maharashtra, 9.4% in Tamil Nadu and 7.1% in Madhya Pradesh.

Company’s cost ratios have remained at the lower end of the spectrum vs. its peers due to its steady branch expansion strategy and underwriting quality. CA has been able to maintain its yield and cost of borrowing, while reducing operating expenses.

CA has been giving loans to higher vintage borrower with whom it has credit relationship. This allows it to lend higher ticket sizes and top-up these loans, increasing its revenue.  In Q2FY23 CA average loan amount grew by 9.4% to 47,364 from 43,287in Q2FY22. While for its subsidy Madura Micro Finance Limited (MMFL) grew by 42.1% from INR 24,979 in Q2FY22 to 35,487 in Q3FY23.

Business Model:

 

CreditAccess follows the Joint Liability Group (JLG) business model to meet credit demand of poor women. It is a rural-focussed (84% borrowers from rural areas in FY22) NBFC MFI. The company has developed a flexible customer-centric business model to cater to its borrower base with a wide variety of products. Apart from typical MFI loans, CA offers home improvement, family welfare and other emergency loans also under the JLG model with flexible repayment intervals. While group meetings between members and loan officers are conducted on a weekly basis, borrowers have been given the option to repay either on a weekly, fortnightly or monthly basis. We believe this helps them in maintaining high borrower retention (around 85%) which further supports its cost ratios.

Source: Company Report

 

Company on a consolidated basis held a 5.8% market share in the overall microfinance industry. Within the NBFC-MFI segment, the Company maintained its position as the largest NBFC-MFI, with 16.5% share of the total GLP of the NBFC-MFI segment.

CreditAccess Grameen has access to impact funds for funding from IFC, Blue Orchard, Microvest Funds and ReponsAbility and Triodos Investment Management. With the MNC parentage, the company can access foreign currency loans. As the size of the company grows, access to foreign debt capital will help to diversify funding and provide stability.

Management:

UDAYA KUMAR HEBBAR, MANAGING DIRECTOR  & CHIEF EXECUTIVE OFFICER

He is a seasoned banker with over 35 years of rich experience spanning across operations, including rural, agriculture, and micro-banking fields. Prior to joining CA Grameen, he held various leadership positions including Head of Commercial Banking and Payment Operations at Barclays Bank PLC.

GEORGE JOSEPH, CHAIRMAN & LEAD INDEPENDENT DIRECTOR

He is a banking industry veteran with diverse experience spanning over four decades. He retired as Chairman and Managing Director of Syndicate Bank. He was earlier associated with Canara Bank for a period of over 36 years. He also serves as a Director on the boards of Wonderla Holidays Limited, Popular Vehicles and Services Limited, and Madura Micro Finance Limited and has been associated with CA Grameen Board as an Independent Director since September 2015

CreditAccess India NV (Promoter Group)

CreditAccess India NV owns a 73.71% stake in the company and specialises in micro and small enterprise financing with operations in India, Indonesia, Philippines and Vietnam. CA India is a professionally managed company invested in by 220+ shareholders including Olympus Capital Asia (US PE firm) holding 15% and Asian Development Bank holding 9%. 

 

Key Ratios of CreditAccess Grameen

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Company Name CMP(₹)
Change ₹(%)
Market Cap
Net Sales (₹ Cr.)
Latest EPS (₹)
Net Profit Margin %
Latest P/E
Latest P/BV
Piramal Enterprises 1,015.2 38.6 (4%) Small Cap 10,020 23.1 -16.8 42.3 0.8
Edelweiss Financial 109.8 3.5 (3.3%) Small Cap 9,500 4.9 5.6 21.7 2
Manappuram Finance 196.2 -3.2 (-1.6%) Small Cap 8,848 26.7 24.8 7.5 1.4
CreditAccess Grameen 1,080 12.1 (1.1%) Small Cap 5,167 55.2 28 19.3 2.5
Spandana Sphoorty 330 14.6 (4.6%) Small Cap 2,424 -66.2 20.7 - 0.7
Fusion Finance 175 5.3 (3.1%) Small Cap 2,317 -8.1 21.8 - 0.7
Muthoot Microfin 161.1 1.1 (0.7%) Small Cap 2,270 24.6 19.8 6.5 0.9
Five Star Business 772 21.4 (2.8%) Small Cap 2,183 33.1 38.3 22.7 3.9
Northern ARC Capital 203.5 9.2 (4.7%) Small Cap 1,829 17.4 15.3 11.2 1
Fedbank Financial 94.6 0.4 (0.4%) Small Cap 1,577 5.9 15.5 15.9 1.5
Shows rows:

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Income2814677091,0021,2831,6842,0312,7503,5525,173
Interest Income2684577028711,2821,6832,0282,7433,5455,167
Other Income 13108131113776
Expenditure 2053365936747861,2341,8372,2692,4473,233
Interest Expense 1282073243544175757459871,2161,738
Operating Expenses 691091561932824044306658131,023
Provisions 92011212786255662617418472
Exceptional Items 0000000000
Profit Before Tax 761301173284984511944811,1051,939
Taxes 27474111617612352128279493
Profit After Tax 4984752123223281423538261,446
Adjusted EPS (₹)6.811.58.816.522.422.79.222.752.090.7
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%11%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Equity Capital3814656911,4372,3652,6693,6354,1675,1076,570
Share Capital 737386128144144156156159159
Reserves 3083926051,3092,2222,5253,4794,0114,9486,411
Minority Interest0000000000
Long Term Borrowings5841,1251,1583,7375,1068,1929,20913,20316,80223,083
Current Liabilities 7621,2151,66751158191302595625356
Trade Payables0003510480170259304256
Short term borrowings02000372525262525
Other Liabilities0-200-35-141-105-195-284-329-282
Total Liabilities 1,7282,8053,5165,2257,62911,05313,14617,96522,53330,009

Assets

Non Current Asset 3508226655,0706,96910,42611,08715,90420,21927,090
Loan Asset 2627666324,8966,6039,1739,71814,76519,04325,105
Other Non Current Asset 8756331743661,2531,3691,1381,1751,985
Current Asset 1,3751,9802,8511566616272,0592,0612,3152,919
Current Investment000000004541,438
Other Current Asset1,3751,9802,8511566616272,0592,0611,8611,480
Total Assets 1,7282,8053,5165,2257,62911,05313,14617,96522,53330,009

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity -616-988-425-1,726-1,378-2,302-364-2,713-3,290-4,734
Cash Flow From Investing Activity -8353-554-7-636-32-33-314-994
Cash Flow From Financing Activity 5979345791,4701,8292,9291,7061,9673,3655,494
Net Cash Flow -102-1149-202444-91,310-780-239-234
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Operational & Financial Ratios

EPS (₹)71191722239235291
DPS (₹)00000000010
BVPS (₹)526380112164185233267320410

Performance Ratios

ROA (%)3.63.72.44.95.03.51.22.34.15.5
ROE (%)16.920.013.120.017.013.14.59.117.924.9
ROCE (%)15.215.514.616.214.911.68.210.012.114.8

Valuation Parameters

Price/Book(x)0.00.00.00.03.11.82.93.22.93.5

CreditAccess Grameen Ltd Stock News

CreditAccess Grameen Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of CreditAccess Grameen on 31-Jan-2025 13:53 is ₹1,080.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 31-Jan-2025 13:53 the market cap of CreditAccess Grameen stood at ₹17,044.
The latest P/E ratio of CreditAccess Grameen as of 31-Jan-2025 13:53 is 19.34.
The latest P/B ratio of CreditAccess Grameen as of 31-Jan-2025 13:53 is 2.47.
The 52-week high of CreditAccess Grameen is ₹1,660 and the 52-week low is ₹750.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of CreditAccess Grameen is ₹5,770 ( Cr.) .

About CreditAccess Grameen Ltd

The company was incorporated as ‘Sanni Collection Private Limited (SCPL)’ on June 12, 1991 at Calcutta, West Bengal, India as a private limited company under the Companies Act, 1956. In February 2007, the entire shareholding of SCPL was acquired by Vinatha M. Reddy, Vijitha Subbaiah and Suresh K. Krishna, in their respective individual capacity. At the time of the acquisition, SCPL also held a certificate of registration as a non-deposit taking NBFC dated March 30, 1998. Subsequently, in October 2007, the microfinance business being operated under T. Muniswamappa Trust (TMT), a public charitable trust engaged in the business of providing micro loans in Karnataka (including all associated assets, liabilities, goodwill, receivables, loan assets and intellectual property, including the brand name Grameen Koota) was transferred to SCPL. The microfinance business being operated under TMT was established as a programme under the name Grameen Koota in 1999. Subsequent to the acquisition of SCPL and the transfer of the microfinance business of TMT to SCPL, SCPL was rebranded under the Grameen name, and pursuant to a resolution of the shareholders of SCPL, its name was changed from SCPL to ‘Grameen Financial Services Private Limited (GFSPL)’. A fresh certificate of incorporation consequent upon change of name by the Registrar of Companies, West Bengal on March 14, 2008, post which the Reserve Bank of India (RBI) granted a certificate of registration dated July, 28, 2009 reflecting the change of name. Subsequently, the RBI granted a fresh certificate of registration dated February 6, 2012 for registration as an NBFC under Section 45 IA of the Reserve Bank of India Act, 1934. The company was granted NBFC-Microfinance Institution (NBFC-MFI) status by the RBI with effect from September 5, 2013. Subsequently, pursuant to a resolution passed by the shareholders of company, the name of company was changed to ‘Grameen Koota Financial Services Private Limited’, and a fresh certificate of incorporation consequent upon change of name was issued by the RoC on November 13, 2014.

Further, a fresh certificate of registration consequent upon change of name was issued to company by the RBI on December 16, 2014. Subsequently, the company was converted into a public limited company pursuant to a special resolution passed by its Shareholders at the EGM held on November 27, 2017 and the name of company was changed to ‘Grameen Koota Financial Services Limited (GFSL)’. A fresh certificate of incorporation consequent upon conversion to a public limited company was issued by the RoC on December 18, 2017. Subsequently, pursuant to a resolution passed by the shareholders of company at the EGM held on January 2, 2018, the name of company was changed to ‘CreditAccess Grameen Limited’, and a fresh certificate of incorporation consequent upon change of name was issued by the RoC on January 12, 2018. Subsequently, the RBI granted a fresh certificate of registration dated January 19, 2018 as an NBFC under Section 45 IA of the Reserve Bank of India Act, 1934 under the name ‘CreditAccess Grameen Limited’.

The company provides loans primarily under the joint liability group (JLG) model. Its primary focus is to provide income generation loans to its customers. It also provides other categories of loans such as family welfare loans, home improvement loans and emergency loans to its existing customers. In 2016, with a view to diversifying its product profile, it introduced individual retail finance loans for customers who had been its customers for at least three years and fulfill certain other eligibility criteria linked primarily to their credit history with it, income, and business position. It offers these loans to customers to establish a new enterprise or expand an existing business in their individual capacity (for instance, for the purchase of inventories, machinery or two wheelers).

Business area of the company

CreditAccess Grameen is a leading Indian micro-finance institution headquartered in Bangalore, focused on providing micro-loans to women customers predominantly in Rural Areas in India. Its wide range of lending products addresses the critical needs of its customers throughout their life cycle and includes income generation, family welfare, home improvement and emergency loans. It focuses predominantly on customers in Rural Areas in India, who largely lack access to the formal banking sector and present a latent opportunity for offering micro-loans. Its products are built on a deep understanding of the requirements of its customers (especially customers from Rural Areas) and the flexibility of products (in terms of ticket sizes, end-uses and repayment options) and the manner of their delivery differentiates it from its competitors and generates customer loyalty.

Awards and Accreditations

  • 2015: The company was awarded the Microfinance India Award - 2015 for Microfinance Organisation of the Year (large) by Access and HSBC.
  • 2015: The company was awarded the Smart Campaign Client Protection Certification by the Smart Campaign.
  • 2016: The company was awarded the COCA - 1 (Very High Level of Adherence) awarded by Smera Ratings Limited.
  • 2017: The company was awarded the Skoch Award - Resilient India Award 2017 for Sanitation Loan by the Skoch Group.
  • 2017: The company was awarded the ISC - FICCI Sanitation Award - Best Financial Accessibility for Sanitation by the FICCI.
  • 2017: The company was rated as “ICRA A1” for Rs 200 Commercial Programme of company by ICRA Limited.
  • 2018: The company was rated as “ICRA A” for Rs 2,013.27 crore credit limits by ICRA Limited.
  • 2018: The company was rated as “ICRA A” for Rs 887 crore NCD Programme of company by ICRA Limited.
  • 2018: ICRA Limited changed company's outlook rating from “stable” to “positive”.
  • 2019: CreditAccess Grameen has been adjudged as the winner in the Best NBFC category at one of India's most prestigious financial sector awards - FE Best Banks awards 2017-18.
  • 2019: Micro Finance Organization of the Year Award 2019.
  • 2020: CNBC-AWAAZ CEO Awards 2019.

Major events and milestones

  • 1991: The company was incorporated as Sanni Collection Private Limited.
  • 1998: The company obtained NBFC registration.
  • 2007: Acquired the microfinance business under the brand name “Grameen Koota” from TMT.
  • 2008: Launched Mifos software in all branches.
  • 2008: Commenced operations in Maharashtra.
  • 2010: Raised Rs 576 million through securitization.
  • 2011: Commenced integration with Credit Bureau for credit decisions.
  • 2013: Granted NBFC - MFI license with effect from September 5, 2013.
  • 2014: CAA acquired a majority stake in Company.
  • 2015: Commenced operations in Madhya Pradesh and Chhattisgarh.
  • 2015: Established seven regional processing centres across our Company’s operational geographies.
  • 2015: Launched a core banking IT solution - T24.
  • 2016: Introduced business loans facilities as part of the Retail Finance division of company.
  • 2017: Grameen Koota partners with Artoo to develop digital lending model.
  • 2017: Grameen Koota gets Rs 250 crore capital from CreditAccess Asia.
  • 2018: Launched IPO.
  • 2019: CreditAccess Grameen Strengthens Its Pan India Presence, Expands In Five New StatesView
  • 2020: CreditAccess Grameen has completed the acquisition of 75.64% of equity share capital of Madura Micro Finance (MMFL) on March 18, 2020.
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