CreditAccess Grameen Ltd. share price target

CreditAccess Grameen (CREDAG) delivered a healthy operational
performance in 4QFY24, with 34% YoY growth in PAT to ~INR3.97b (inline).
4QFY24 NII grew ~42% YoY to ~INR8.8b and PPoP grew 36% YoY to
~INR6.8b. FY24 PAT grew ~31% YoY to ~INR5.1b.

CredAG continues to report strong GLP growth at 32% YoY/14% QoQ. This,
coupled with stable margins and higher other income and partially offset by
higher LLP and staff costs (due to one-off provision of Rs260mn towards bonus
and ex-gratia), led to an almost in-line PAT at Rs4bn/RoA @5.7% (Emkay PAT:
Rs3.9bn).

We maintain our BUY recommendation on the stock.

High Conviction Stocks Idea

As of December 31, 2023, GLP (Gross Loan Portfolio) reported a 31.5% YoY/4.0% QoQ growth at INR 2,33,820 Mn on the back of a lower base from last year and healthy additions of customers during the quarter. The focus on process stabilization post-completion of the CBS upgrade resulted in an expected impact on disbursements and customer additions during the 2–3 weeks of November 2023.

Strong franchise aligned to its revised upwards guidance

Recommendation: We maintain our BUY recommendation on the stock.