KRChoksey's research report on CreditAccess Grameen
NBFC-MFI has reported consolidated total income of INR 3.9 bn and PAT after minority interest reported at INR 72.1 cr. Consolidated GLP has grown by 53.9% YoY to INR 117.2 bn. According to management, lifting of lockdown to support further advances growth. Standalone NII reported at INR 3 bn (26% YoY, 6% QoQ) for Q1FY21 backed by NIMs at 12.6%. Total income reported at INR 3.3 bn (29% YoY, 11% QoQ) along with 73% YoY growth in Non-interest income at INR 22.4 cr (94% QoQ). Standalone Pre-provision profit reported at INR 2.2 bn (37% YoY, 32% QoQ) backed by improved operating efficiency where cost to income ratio was at 31% from 41.9% in Mar’20 and 35.4% in Jun’19. Opex/GLP ratio also improved from 4.8% in Jun’19 to 4.1% in Jun’20. PAT has lowered by 33.6% YoY due to additional COVID provisioning of INR 1.4 bn for the quarter where PAT reported at INR 63.6 cr. Asset quality is stable with GNPA of 1.62% and NNPA of 0.0%. Capital adequacy is stable at 23.7%. Its collection efficiency improved to 74% of Jun’20 and 76% in Jul’20.
Outlook
At CMP of INR 531, CAGL is trading at a multiple of 2.7x of consolidated adjusted book value of INR 195.3/share. Full recovery in business operations is expected in the next financial year. Accordingly, we assign P/ABV multiple of 2.43x to FY22E consolidated adjusted book value of INR 281.6/share to arrive at a target price of INR 684/share and maintain BUY rating on the stock.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Read More
