India's CreditAccess Grameen jumps as Goldman Sachs starts with 'buy'

CreditAccess Grameen

12/04/2024 07:33

** Shares of non-banking microfinance lender CreditAccess
Grameen  CRDE.NS  up 4.9% at 1,498 rupees
    ** Goldman Sachs starts covering stock with "buy" rating and
PT of 1,788 rupees
    ** Says CRDE "well-poised" to capture share of expanded
~$136 bln microfinance lending market, sees AUM growing 19% CAGR
from FY24-28
    ** FY24-26 profit after tax to grow 21% CAGR, driven by 24%
CAGR in lending - Goldman
    ** CRDE can narrow "unwarranted" valuation gap with larger
peers over next two years if it continues to deliver "superior
operating metrics", brokerage says
    ** CRDE's FY25 P/E of 12.4x is a 27% discount on avg to
non-bank lenders covered by brokerage
    ** Avg rating of 16 analysts is a "strong buy;" median PT is
1,900 rupees - LSEG data
    ** Stock narrows YTD losses to 6.7%

 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))