External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

CreditAccess Grameen Ltd / Equity Bottom-Up

<ul><li>CreditAccess Grameen (CREDAG) has emerged as the largest NBFC-MFI (~6% market share) on the back of its strong parentage, conservative underwriting, and a calibrated approach to building scale (partly inorganic) with inherently strong cross-cycle profitability (~3.6% RoA) and growth outcomes (&gt;30% AUM CAGR)</li><li>With the RBI hinting at its discomfort with super-normal margins enjoyed by NBFC-MFIs, we argue that peak growth and profitability for the MFI sector are behind on the back of rising competitive intensity and increasing consumer leverage</li><li>In this backdrop, CREDAG’s current valuation (3.6x Mar-25 ABVPS), post a near-doubling in the stock price during CY23, offers limited margin of safety.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

CreditAccess Grameen (CREDAG) has emerged as the largest NBFC-MFI (~6% market share) on the back of its strong parentage, conservative underwriting, and a calibrated approach to building scale (partly inorganic) with inherently strong cross-cycle profitability (~3.6% RoA) and growth outcomes (&gt;30% AUM CAGR)With the RBI hinting at its discomfort with super-normal margins enjoyed by NBFC-MFIs, we argue that peak growth and profitability for the MFI sector are behind on the back of rising competitive intensity and increasing consumer leverageIn this backdrop, CREDAG’s current valuation (3.6x Mar-25 ABVPS), post a near-doubling in the stock price during CY23, offers limited margin of safety.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CreditAccess Grameen: Priced for Peak Profitability, Downgrade to ADD

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>CAGrameen added ~3.4 Lc borrowers, with ~40% coming from states other than the Top.</li><li>The diversification strategy is on track with the share of Top-3 states reducing to 55% from 58% YoY.</li><li>Disbursements grew by 14/4% YoY/QoQ, translating into robust GLP growth of 36/3% YoY/QoQ.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

CAGrameen added ~3.4 Lc borrowers, with ~40% coming from states other than the Top.The diversification strategy is on track with the share of Top-3 states reducing to 55% from 58% YoY.Disbursements grew by 14/4% YoY/QoQ, translating into robust GLP growth of 36/3% YoY/QoQ.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CreditAccess Grameen Ltd - Yet Another Robust Quarter; Strong Performance to Continue!

<ul><li>CAGrameen added ~3.3 Lc borrowers in Q1FY24, with ~47% coming from other than Top-3 states.</li><li>Disbursements de-grew by ~33% QoQ owing to seasonality, while YoY growth was strong at 122%.</li><li>GLP growth was in line with our expectations of 40%/4% YoY/QoQ.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

CAGrameen added ~3.3 Lc borrowers in Q1FY24, with ~47% coming from other than Top-3 states.Disbursements de-grew by ~33% QoQ owing to seasonality, while YoY growth was strong at 122%.GLP growth was in line with our expectations of 40%/4% YoY/QoQ.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CreditAccess Grameen Ltd. - Stellar Quarter; Strong Performance to Continue!

<div><div><div><div><ul><li>Company Outlook: Even as competitive intensity in the MFI segment continues to intensify with banks and NBFCs chasing growth aggressively, we believe CAGrameen remains well-placed to tap the large unmet demand which would be supported by its large branch network, deep rural penetration, customised product offerings, and competitive pricing.</li><li>We prefer CAGrameen amongst the microfinanciers owing to the company’s ability to (a) Deliver healthy GLP growth driven by continued growth in the MFI book and improving mix of non-MFI products, (b) Strong NIMs, (c) A Stable cost structure, (d) Moderating credit costs with asset headwinds decisively behind and (e) The company’s potential to deliver strong RoA/RoE of 4.7-4.8%/20-21% over the medium term.</li><li>We maintain our BUY recommendation on the stock and believe that the strong performance delivery potential justifies premium valuations. </li></ul></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Company Outlook: Even as competitive intensity in the MFI segment continues to intensify with banks and NBFCs chasing growth aggressively, we believe CAGrameen remains well-placed to tap the large unmet demand which would be supported by its large branch network, deep rural penetration, customised product offerings, and competitive pricing.We prefer CAGrameen amongst the microfinanciers owing to the company’s ability to (a) Deliver healthy GLP growth driven by continued growth in the MFI book and improving mix of non-MFI products, (b) Strong NIMs, (c) A Stable cost structure, (d) Moderating credit costs with asset headwinds decisively behind and (e) The company’s potential to deliver strong RoA/RoE of 4.7-4.8%/20-21% over the medium term.We maintain our BUY recommendation on the stock and believe that the strong performance delivery potential justifies premium valuations. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CreditAccess Grameen Ltd. - Strong Growth Runway, Premium Valuations Justified!

<ul><li>CAGrameen’s strong disbursement momentum (+24/48% YoY/QoQ) translated into a healthy GLP growth of 27/18% YoY/QoQ.</li><li>Robust GLP growth coupled with strong NIMs of 12.2% (+90/30 bps YoY/QoQ) drove NII growth of 34/15% YoY/QoQ.</li><li>Higher-than-expected non-interest income and lower Opex growth (Q3FY23 other Opex was higher owing to higher expenses towards NCD raise issue, while it normalised in Q4FY23) driving healthy PPOP growth of 36/33% YoY/QoQ</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

CAGrameen’s strong disbursement momentum (+24/48% YoY/QoQ) translated into a healthy GLP growth of 27/18% YoY/QoQ.Robust GLP growth coupled with strong NIMs of 12.2% (+90/30 bps YoY/QoQ) drove NII growth of 34/15% YoY/QoQ.Higher-than-expected non-interest income and lower Opex growth (Q3FY23 other Opex was higher owing to higher expenses towards NCD raise issue, while it normalised in Q4FY23) driving healthy PPOP growth of 36/33% YoY/QoQContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CreditAccess Grameen Ltd. - Robust Quarter;Well-Poised to Deliver RoA of over 4.5%!

India

CreditAccess Grameen Limited provides consumer finance services. The Company offers income generation, home improvement, emergency, and family welfare loans, as well as retail finance, insurance, and healthcare programs. CreditAccess Grameen serves clients in India.

CreditAccess Grameen Ltd (CREDAG IN)

CreditAccess Grameen: Priced for Peak Profitability, Downgrade to ADD

In this backdrop, CREDAG’s current valuation (3.6x Mar-25 ABVPS), post a near-doubling in the stock price during CY23, offers limited margin of...

HDFC Securities

CreditAccess Grameen Ltd - Yet Another Robust Quarter; Strong Performance to Continue!

CAGrameen added ~3.4 Lc borrowers, with ~40% coming from states other than the Top. The diversification strategy is on track with the share of Top...

Axis Direct

CreditAccess Grameen Ltd. - Stellar Quarter; Strong Performance to Continue!

CAGrameen added ~3.3 Lc borrowers in Q1FY24, with ~47% coming from other than Top-3 states. Disbursements de-grew by ~33% QoQ owing to seasonality,...

Axis Direct

CreditAccess Grameen Ltd. - Strong Growth Runway, Premium Valuations Justified!

We maintain our BUY recommendation on the stock and believe that the strong performance delivery potential justifies premium valuations.

Axis Direct

CreditAccess Grameen Ltd. - Robust Quarter;Well-Poised to Deliver RoA of over 4.5%!

CAGrameen’s strong disbursement momentum (+24/48% YoY/QoQ) translated into a healthy GLP growth of 27/18% YoY/QoQ. Robust GLP growth coupled with...

Axis Direct