CreditAccess Grameen NSE Stock Price Analysis and Insights

CreditAccess Grameen is a leading microfinance company in India, and its stock price on the NSE (National Stock Exchange) can be a great investment opportunity.

Its stock price has shown significant growth over the years, with a high of ₹1,143.65 in 2022.

However, the stock price can be volatile, and it's essential to analyze the market trends and fundamentals before making any investment decisions.

The company's strong financial performance, including a high return on assets (ROA) of 8.2% in 2022, makes it an attractive option for investors.

One of the key factors driving the stock price is the company's increasing loan book, which has grown by 23% year-over-year in 2022.

CreditAccess Grameen's financials are a crucial aspect to consider when evaluating the stock price. The company's financial statements are well-structured, making it easy to understand the financial health of the organization.

The Balance Sheet Decomposition shows that CreditAccess Grameen has a significant amount of current assets, totaling 11.1 billion, with a substantial portion being cash and short-term investments, amounting to 10.3 billion. This indicates a strong liquidity position.

The Profit and Loss Statement reveals that the company's total income has been increasing over the years, with a notable growth in FY 2023, reaching 3,545.1. This is a positive sign, indicating a healthy revenue stream.

Here's a breakdown of the company's financial performance:

Overall, CreditAccess Grameen's financials suggest a strong and stable financial position, which is a positive indicator for the stock price.

The balance sheet is a snapshot of a company's financial situation at a specific point in time. It's a crucial document that provides a comprehensive overview of a company's assets, liabilities, and equity.

A company's assets are its resources, such as cash, inventory, and property, plant, and equipment (PP&E). For example, CreditAccess Grameen Ltd's current assets are a significant portion of its total assets, at 11.1 billion.

The balance sheet also shows a company's liabilities, which are the debts it owes to others. CreditAccess Grameen Ltd's current liabilities are 2.8 billion, which is a substantial amount compared to its current assets.

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The balance sheet also includes a company's equity, which represents the ownership interest in the company. CreditAccess Grameen Ltd's total equity is 5.1 billion, which is a significant portion of its total assets.

Here's a breakdown of CreditAccess Grameen Ltd's balance sheet:

The balance sheet is a powerful tool for understanding a company's financial health and making informed investment decisions. By analyzing a company's balance sheet, investors can gain insights into its financial performance, management's strategies, and potential risks.

The Profit and Loss (P&L) statement is a fundamental component of a company's financials, providing a snapshot of its revenues and expenses over a specific period. It's often divided into several sections, including Income Statement, Balance Sheet, and Cash Flow Statement.

The Income Statement, also known as the P&L statement, typically includes items such as Total Income, Total Expenditure, Operating Profit, and Profit Before Tax. Let's take a look at an example from CreditAccess Grameen Ltd:

As you can see, the company's Total Income has been steadily increasing over the years, while Total Expenditure has also risen but at a slower rate.

The P&L statement is crucial for understanding a company's profitability and cash flow. By analyzing the statement, investors and analysts can identify trends, assess the company's financial health, and make informed decisions.

Here are some key metrics to look for in a P&L statement:

These metrics provide valuable insights into a company's financial performance and can help investors make informed decisions.

When evaluating a company's financial health, it's essential to take a closer look at their dividend and buyback policies. The current dividend yield is a respectable 1.08%, which is a great incentive for investors looking to generate passive income.

This yield is also in line with the industry average, suggesting that the company is performing competitively in terms of dividend distribution. The dividend payout ratio is a relatively low 0.08%, indicating that the company is not overburdening itself with dividend payments.

One metric that stands out is the 5-Year Yield-on-Cost, which is 1.09%. This suggests that investors who have held onto their shares for an extended period have seen a relatively stable return on their investment. In contrast, the 3-Year Average Share Buyback Ratio is -0.8%, indicating that the company has been buying back shares at a rate that's slightly faster than the rate at which they're being issued.

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This can be a sign that the company is confident in its future prospects and is using its cash reserves to reduce the number of outstanding shares. However, the Shareholder Yield % of -30.58% suggests that the company is actually returning value to shareholders through buybacks and dividends, rather than simply reducing the number of shares outstanding.

Creditaccess Grameen's financials are a crucial aspect of evaluating its stock price. The company's financial statements, including the Balance Sheet, P&L Statement, and Cash Flow Statement, provide a comprehensive view of its financial health.

The company's industry quick ratio stands at 2.90, which is lower than the industry average of 3.91, indicating a negative aspect. However, the debt to equity ratio of 3.50 is relatively low, suggesting a lower risk for investors.

In terms of credit risk, Creditaccess Grameen's credit ratings are as follows:

The credit ratings indicate that the company's creditworthiness has varied over different timeframes, with a moderate to high risk in some periods.

Financial Statement Analysis is a crucial step in understanding a company's financial health. It involves analyzing the financial statements, such as the Balance Sheet, Income Statement, and Cash Flow Statement, to identify trends, patterns, and anomalies.

To begin with, let's look at the Industry Quick Ratio, which stands at 2.90, compared to the company's Quick Ratio of 3.91, resulting in a Positive aspect. This indicates that the company has a strong ability to meet its short-term obligations.

The Industry Debt to Equity Ratio is 3.59, while the company's Debt to Equity Ratio is 3.50, also resulting in a Positive aspect. This suggests that the company has a manageable level of debt compared to its equity.

The Industry Current Ratio is 2.91, whereas the company's Current Ratio is 3.91, resulting in a Positive aspect. This indicates that the company has sufficient liquid assets to meet its short-term obligations.

However, the Industry Price to BV stands at 4.22, whereas the company's Price to BV is 2.85, resulting in a Negative aspect. This suggests that the company's stock price is relatively high compared to its book value.

Here's a summary of the key ratios:

By analyzing these ratios, we can gain insights into the company's financial health and identify areas for improvement.

Price Targets are a crucial aspect of financial analysis, and they can be set based on various factors such as the company's historical stock price, industry averages, and analyst estimates.

A common method for setting price targets is to use the company's historical stock price as a benchmark, as seen in the example of XYZ Corporation, which has a historical stock price of $50 per share.

Price targets can also be set based on industry averages, as in the case of ABC Inc., which has a price target of $75 per share based on its industry's average stock price.

In some cases, price targets are set based on analyst estimates, as in the example of DEF Company, which has a price target of $100 per share based on the consensus estimate of 12 analysts.

Price targets can be adjusted over time as new information becomes available, such as changes in the company's financial performance or industry trends.

A price target of $80 per share was set for EFG Ltd. based on its expected earnings growth rate of 15% per annum.

Price targets can also be used to evaluate the performance of a company's stock over time, allowing investors to compare their returns to the expected price target.

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Analyzing the valuation history of a company can be a crucial step in making informed investment decisions. In the case of CreditAccess Grameen Ltd, we can see that the stock is currently trading at its lowest valuation over the past 5 years.

This is a significant indicator that the stock may be undervalued, making it a potential buying opportunity. To put this into perspective, CreditAccess Grameen's stock has seen a significant increase in value over the past year, with a return of 41.95%.

However, it's essential to consider the risks involved, as the company's risk profile is somewhat balanced, with 44% of investors categorizing it as low risk, 44% as moderate risk, 44% as balanced risk, 44% as high risk, and 44% as extreme risk.

Here's a breakdown of CreditAccess Grameen's risk profile:

In terms of short-term performance, CreditAccess Grameen's stock has seen a return of 7.57% over the past week, 3.51% over the past three months, and 29.77% over the past six months.

The GF Value Rank is a crucial metric in financial analysis, and it's calculated based on several key factors. One of the most important is the PE Ratio, which for this company is 11.06.

The GF Value Rank also takes into account the Forward PE Ratio, which is 9.42. This suggests that the company's stock is relatively undervalued compared to its future earnings potential.

Another key factor is the PEG Ratio, which is 0.28. This means that the company's stock is trading at a relatively low price compared to its growth rate.

The GF Value Rank also considers the Price-to-Tangible-Book, which is 2.26. This suggests that the company's stock is trading at a relatively low price compared to its tangible book value.

Here's a breakdown of the GF Value Rank components:

The GF Value Rank is a powerful tool for investors, and it can help identify undervalued stocks with strong growth potential.