Q3 FY21 Result Update - CreditAccess Grameen - YES Securities

(Rating: BUY, TP: Rs 1,000, Upside 44.1%)

- Overall CREDAG's Cycle-completing provisions drives the loss in Q3 FY21; however, growth/profitability metric should be normal in FY22/23

- Our view of a normal growth and profitability in FY22/23 remains unchanged (rather earnings estimates undergo slight uptick), and thus we continue to expect a material re-rating of the stock.

- Valuation at 1.9x FY23 P/ABV for a best-in-class MFI franchise is attractive. Retain BUY recommendation and 12m TP of Rs1000.

Shares of CreditAccess Grameen Ltd was last trading in BSE at Rs.692.75 as compared to the previous close of Rs. 710.95. The total number of shares traded during the day was 9012 in over 1002 trades.

The stock hit an intraday high of Rs. 739 and intraday low of 690.5. The net turnover during the day was Rs. 6296902.

Source : Equity Bulls

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