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What is the story about?
Shares of CreditAccess Grameen Ltd. gained as much as 9% on Wednesday, after multiple brokerages tracking the stock issued upgrades in response to its third quarter results that were reported after market hours on Tuesday.
HSBC has upgraded the stock to "buy" from its earlier rating of "hold", and raised its price target to ₹1,630 from ₹1,310 earlier.
The brokerage said that the third quarter performance was underscored by margin expansion and a sharp decline in provisions.
HSBC anticipates a stronger financial year 2027 than implied by the guidance from the company, and therefore, it has increased its financial year 2026-2028 estimates for its Earnings Per Share (EPS) by 7% and 13% respectively.
CLSA has also upgraded the stock to "buy" from its earlier rating of "hold" with a price target of ₹1450, stating that the share of new products in retail finance, non-MFI mix in the overall portfolio could be higher than 15% this year.
Other brokerages such as JM Financial, ICICI Securities, Avendus Spark, and Nomura have also upgraded the stock to "buy" ratings.
17 analysts have coverage on CreditAccess Grameen, of which 14 have a "buy" rating, two say "hold", while one has a "sell" rating.
For financial year 2027, CreditAccess Grameen sees credit costs to be between 4% to 4.5%, and reiterated that the 20% growth guidance remains intact. The management also expects Net Interest Margins (NIMs) to trend back to 14% to 14.5% over time, while Return on Assets (RoA) could rise to 4% to 4.5% from 3.5% currently.
Shares of CreditAccess Grameen are trading 8.6% higher on Wednesday at ₹1,349. The stock is up 40% over the last 12 months.
HSBC has upgraded the stock to "buy" from its earlier rating of "hold", and raised its price target to ₹1,630 from ₹1,310 earlier.
The brokerage said that the third quarter performance was underscored by margin expansion and a sharp decline in provisions.
HSBC anticipates a stronger financial year 2027 than implied by the guidance from the company, and therefore, it has increased its financial year 2026-2028 estimates for its Earnings Per Share (EPS) by 7% and 13% respectively.
CLSA has also upgraded the stock to "buy" from its earlier rating of "hold" with a price target of ₹1450, stating that the share of new products in retail finance, non-MFI mix in the overall portfolio could be higher than 15% this year.
Other brokerages such as JM Financial, ICICI Securities, Avendus Spark, and Nomura have also upgraded the stock to "buy" ratings.
17 analysts have coverage on CreditAccess Grameen, of which 14 have a "buy" rating, two say "hold", while one has a "sell" rating.
For financial year 2027, CreditAccess Grameen sees credit costs to be between 4% to 4.5%, and reiterated that the 20% growth guidance remains intact. The management also expects Net Interest Margins (NIMs) to trend back to 14% to 14.5% over time, while Return on Assets (RoA) could rise to 4% to 4.5% from 3.5% currently.
Shares of CreditAccess Grameen are trading 8.6% higher on Wednesday at ₹1,349. The stock is up 40% over the last 12 months.
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