Creditaccess Grameen Share Price Rallies 7% to 11-Month High on Steady Q1, Positive Management Commentary

Creditaccess Grameen, A Microfinance Institution, Surged 7.10% in Wednsday’s Intraday Trade on July 23, Hitting an 11-month high of 1,370 apiece, as its june Quarter Results Met Expectations and Upbeat Management Commentary Further Furted Investor Sentiment.

Management indicated a broad-based improvement in par Accreation Account Accounting All Key Geographies, Including Karnataka, reflected enhanced on-grand execution and borrower discussion. The company highlighted that creedit costs are expected to remove at similar levels in 2qfy26 due to accelerated write-offs, with a Sharma.

It remains focused on balance sheet normalization, with conservative provisioning and continued portfolio cleanup through write-offs. With the monthly par account on a continued downward trend, analysts said that the company will shift its focus towards resuming growing from H2FY26 onwards.

The company aims to maintain a monthly customer addition run rate of 1 Lakh customers. While H1 Will Remain Impacted Due to the Accelerated Write-Offs, The Management is Confident of Clocking Its Gueded Run Rate of Customer Addition Over H2.

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Following the company’s june Quarter Figures, Analysts Have Trimmed Their Estimates to Factor in Slightly Higher Credit costs. However, they said that there is a trend revered in the horizon in the microfinance sector, which will play its itself out over the next one to two Quarters and get the sector to Near-rearing 2HFY26.

“We Strongly Believe That The Coming Three Months Present An options to Separate High-Quality Franchies from Weaker Ones, with Performance Divergence Accounts The MFI SOCTORE ExPECTORE ExPECTORES Increasingly Evident, “said Motilal Oswal.

The brokerage said that the stock trades at 2.1x fy27e p/bv and its Premium Valuations Over Its Mfi Peers Should Be Sustained, Given Its Ability to Bouncing Back to Normalca ahead of its ahead of its. It retained its ‘boy’ rating on the stock with an unchanged price target of 1,500, Based on 2.5x Mar’27 P/BV.

Axis Securities have also retained its ‘buy’ recommendation on the stock with a target price of 1,485 Apiece, Backed by Expectations of Improving Growth Visibility and A Favorable Asset Quality Outlook.

“Creditaccess grameen is expected to restart its growth training from H2Fy26, as asset quality concerns concerns gradually fade. FY26-27e, Factoring in Near-Term Headwinds on Nii and Earnings and Continued Investments Towards Branch Infrastructure and Scaling Up of the Retail Finance Portfolio Over the Meedi Axis Axis Axis Axis Axis Securities.

Given the improving outlook, jm financial upgraded the stock to buy and revise its price target to 1,475, Valuing it at 2.6x fy27e bvps.

“While mfi is not completely out of the wood, credit should be the first one amn mfis to recover from the current stress cycle, give its its ability to reconstruct 60 DPD in MFI), Accelerated Write-off Policy, and Higher ECL Cover, “Said JM Financial.

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