Buy CreditAccess Grameen, target price Rs 850: ICICI Securities

ICICI Securities has given a buy rating to CreditAccess Grameen with a target price of Rs 850. The share price moved up by 4.68 per cent from its previous close of Rs 719.25. The stock’s last traded price is Rs 752.90.

CreditAccess Grameen Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 11271.61 Crore) operating in NBFC sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 576.02 Crore, down 6.99 % from last quarter Sales of Rs 619.29 Crore and up 46.58 % from last year same quarter Sales of Rs 392.98 Crore Company reported net profit after tax of Rs 79.57 Crore in latest quarter.

Investment Rationale
The brokerage maintains BUY with a revised target price of Rs850 (earlier: Rs820) as it factors in capital infusion of Rs8bn in Oct’20.

Promoter/FII Holdings
Promoters held 74.1 per cent stake in the company as of Sept 30, 2020, while FIIs held 11.9 per cent, DIIs 6.9 per cent and public and others 7.1 per cent.