$NSE:CREDITACCNSE:CREDITACC
Good company
At support level
Details of stock will upload on y.tube
Target and support will discuss there.
CREDITACC trade ideas
CreditAccess Grameen: Making a Difference in Microfinance◉ Abstarct
The Indian microfinance sector has grown significantly, reaching a total loan amount of about ₹4.33 lakh crore (around $52 billion) by March 2024, which is a 24.5% increase from the previous year. CreditAccess Grameen Limited plays a vital role by providing loans mainly to low-income women, helping them improve their lives.
The company saw an 11.8% growth in its total assets and a 20.8% rise in net interest income for the second quarter of FY25. Despite facing challenges like high-interest rates and regulatory pressures, it expects continued growth due to favorable rural conditions and technology improvements. Lower interest rates in the future could also boost profits and share prices for microfinance institutions like CreditAccess Grameen.
Read full analysis here..........
◉ Introduction
The Indian microfinance sector has evolved significantly over the past five decades, becoming a crucial component of the country's financial landscape. Here’s an overview of its current status, growth trajectory, challenges, and impact.
◉ Current Status
● Market Size: As of March 31, 2024, the microfinance industry boasts a gross loan portfolio of approximately ₹4.33 lakh crore (around $52 billion), marking a year-on-year growth of 24.5%. This growth underscores the sector's resilience and capacity to adapt to changing economic conditions.
● Customer Base: The sector serves around 78 million customers, with a notable increase in clientele from rural and semi-urban areas. This demographic shift reflects the sector's commitment to enhancing financial inclusion.
● Institutional Landscape: The microfinance sector comprises 168 Micro Finance Institutions (MFIs) operating across various states and union territories, with non-banking financial companies (NBFCs) leading the market with a share of 39.1%, compared to traditional banks at 33.5% as of FY23.
◉ Growth Drivers
● Regulatory Framework: The introduction of favourable regulations by the Reserve Bank of India (RBI) has facilitated growth by allowing MFIs greater flexibility in setting interest rates and expanding their lending capabilities. The establishment of MUDRA Bank has also played a pivotal role in financing small businesses.
● Technological Advancements: The integration of technology in operations has improved efficiency and customer outreach, enabling MFIs to serve a larger client base effectively.
● Government Initiatives: Programs aimed at promoting women's entrepreneurship and financial literacy have bolstered the sector's growth. Initiatives such as the Pradhan Mantri Mahila Shakti Kendra aim to empower women through easier access to credit.
◉ Impact of Monetary Policy Decisions on Microfinance
● Interest Rates: Changes in the repo rate influence borrowing costs for microfinance institutions (MFIs). Lower rates reduce loan costs for borrowers, promoting demand for microfinance products.
● Access to Credit: Relaxed monetary policy improves liquidity, encouraging banks to lend to MFIs, which enhances their ability to provide loans to underserved populations.
● Economic Activity: Lower interest rates stimulate economic growth, improving borrowers' repayment capacity and reducing default rates.
◉ Key Players in the Microfinance Sector
Several prominent companies operate within the Indian microfinance landscape:
1. Ujjivan Financial Services Limited: A major player that transitioned into banking with Ujjivan Small Finance Bank, focusing on serving unbanked populations.
2. Bandhan Bank: Initially a microfinance institution, it became a bank in 2015 and provides a variety of financial products aimed at rural and semi-urban areas.
3. Bharat Financial Inclusion Limited (BFIL): Formerly known as SKS Microfinance, BFIL offers microcredit services across India and emphasizes empowering women entrepreneurs.
4. CreditAccess Grameen Limited: This institution focuses on providing loans to low-income households and has established a strong presence in rural regions.
5. Spandana Sphoorty Financial Ltd.: An NBFC-MFI that provides various financial services to economically disadvantaged individuals.
6. Arohan Financial Services Limited: Offers microfinance solutions and is part of the Aavishkaar-Intellecap Group.
Other notable players include Utkarsh Small Finance Bank , Share Microfin Limited , Muthoot Microfin Limited , and Satin Creditcare Network Limited , all contributing to the sector's growth through innovative financial products tailored for low-income clients
◉ Challenges Facing the Sector
Despite its growth trajectory, the Indian microfinance sector faces several challenges:
● Over-Indebtedness: Many borrowers struggle with high-interest rates and multiple loans from different MFIs, leading to financial stress.
● Regulatory Compliance: The sector is subject to strict regulations imposed by the Reserve Bank of India (RBI), which can affect operational flexibility.
● Financial Literacy: Low levels of financial literacy among borrowers can hinder effective utilization of microfinance services
In this in-depth analysis, we'll explore CreditAccess Grameen's market positioning and competitive dynamics, shedding light on its remarkable impact in India's microfinance landscape
◉ Company Overview
CreditAccess Grameen Limited NSE:CREDITACC , a leading non-banking financial company, provides microfinance services to women from low-income households in India. The company offers microcredit loans for income generation, home improvement, and emergency needs, as well as insurance services, retail finance loans, and digital lending products. Incorporated in 1991 and headquartered in Bengaluru, India, CreditAccess Grameen Limited operates as a subsidiary of CreditAccess India BV. Formerly known as Grameen Koota Financial Services Private Limited, the company was renamed in January 2018.
◉ Market Capitalization - ₹ 15,608 Cr.
◉ Investment Advice
💡 Buy CreditAccess Grameen NSE:CREDITACC
● Buy Range - 950 - 970
● Sell Target - 1280 - 1300
● Potential Return - 30% - 35%
● Approx Holding Period - 12-14 months
◉ Q2 FY25 Earnings Performance Summary
● Total AUM Growth: Increased by 11.8% year-over-year, reaching INR 25,133 Crore.
● Gross Loan Portfolio (GL): Rose by 9.3% year-over-year to INR 24,188 Crore.
● Retail Finance (RF) Portfolio: Demonstrated strong growth with an AUM of INR 945 Crore.
● Customer Base: Grew by 7.2% year-over-year to 49.33 Lakh, with the addition of 1.46 Lakh new customers in Q2 FY25.
● Branch Network: Expanded to 2,031 branches across 398 districts, adding 55 new branches during the quarter.
◉ Financial Highlights
● Net Interest Income (NII): Increased by 20.8% year-over-year to INR 933 Crore.
● Cost of Borrowings: Average cost remained stable at 9.8%, with a marginal cost of 9.4%.
● Portfolio Yield: Held steady at 21.1%, with an interest spread of 11.4%, among the lowest in the microfinance sector.
● Net Interest Margin (NIM): Improved to 13.5%, up from 13.0% in Q1 FY25.
● Cost-to-Income Ratio: Reported at 30.7%; Pre-Provisioning Operating Profit (PPOP) grew by 19.5% year-over-year to INR 672 Crore.
● Profit After Tax (PAT): Recorded at INR 186 Crore for Q2 FY25, with a Return on Assets (ROA) of 2.7% and a Return on Equity (ROE) of 10.7%.
◉ Asset Quality Update
A temporary rise in delinquency attributed to:
● Interventions by third parties impacting repayment capabilities.
● Liquidity and cash flow challenges experienced by customers.
● Income fluctuations for agricultural laborers due to adverse weather conditions.
◉ NPA Status Overview
● As of September 2024, preliminary data indicates a slight uptick in NPAs with a gross NPA ratio of 2.44% and a net NPA ratio of 0.76%. This change may reflect broader economic conditions or specific challenges faced by borrowers in the microfinance segment.
◉ FY25 Performance Guidance
● Loan portfolio growth expected at 8-12%.
● NIM forecasted at 12.8-13.0%.
● Credit cost guidance at 4.5-5.0%.
● ROA projected at 3.0-3.5%, ROE at 12.0-14.0%.
◉ Management Confidence
Management is confident that the ongoing delinquency cycle will be short-term, stabilizing by Q3 FY25. Looking ahead, the company expects to gain momentum in Q4 FY25, fueled by favourable rural economic conditions.
◉ Technical Aspects
● After hitting an all-time peak of 1,780, the stock plummeted 50%.
● Currently, it's staging a recovery from the long-term trendline support, with substantial upside potential.
◉ Conclusion
CreditAccess Grameen is well-positioned for substantial growth, driven by increasing demand for financial services among low-income groups, ongoing government support, and advancements in digital technology. The company's strong financial foundation will enable it to capitalize on these trends.
Furthermore, the current high interest rates are expected to decrease soon, leading to lower borrowing costs for microfinance institutions (MFIs) like CreditAccess Grameen. This reduction in borrowing costs will likely enhance profitability, which in turn may positively impact the company's share price, driving it to higher levels.
CreditAccess Grameen Ltd Heading for 2200Current Price: ₹1,264.00 (as of Sep 17, 2024).
Target - 2200
Stop Loss below 1140
Sector: Microfinance, serving the underbanked population with a focus on rural areas.
Revenue Growth: The company has demonstrated strong top-line growth in recent years, owing to increased loan disbursements and a rising customer base.
Profitability: With a focus on expanding its rural reach, the company has shown stable profitability metrics.
Loan Book: CreditAccess Grameen’s loan book has expanded considerably, reflecting high demand for micro-loans in India.
Risk: Operating in the microfinance sector poses risks, including potential defaults in periods of economic stress, but the company's risk management strategy has proven resilient.
Growth Potential: Given the rising focus on financial inclusion in India, the company is well-positioned for long-term growth.
CREDITACCHi guys,
In this chart i Found a Demand Zone in CREDITACC CHART for Positional entry,
Observed these Levels based on price action and Demand & Supply.
*Don't Take any trades based on this Picture.
... because this chart is for educational purpose only not for Buy or Sell Recommendation..
Thank you
Credit Access at Strong SupportThe Strongest stock in one of India's fastest growing sectors has fallen to very strong support.
The fundamentals of the sector were hurt due to lengthy high interest rates, which are soon to witness the much favorable downturn.
Company fundamentals are still intact though and it is the leader in small finance industry.
This idea is to spread awareness and should not be considered as basis of any financial commitment. DO YOUR OWN RESEARCH BEFORE TRADING/INVESTING.
Credit access grameen - The largest microfinance institutionGood fundamentals , available at 35% down from peak. Good stock to buy for long term
Credit Access Grameen Ltd. The chart shows - A hammer at 0.618 retracement of a journey from 835 to 1780. Next week price action is important, can be kept on watch. SL- 1150 WCB>
inside pattern trade with target 18%channel pattern, Currently in supportline, low risk trade.
Stochastics in oversold zone.
target 18%
Buy CREDITACC for 1:2.5 risk reward ratioI am analyzing CREDITACC using a monthly timeframe. Based on my analysis of the chart, CREDITACC appears to be trading near the fourth subwave of its third wave and has recently touched the lower boundary of the channel, as indicated in the chart. If CREDITACC proceeds to form the fifth subwave of its third wave, there is potential for profit. Therefore, my initial target will be set at 1670. If momentum remains strong, the position could be held until it reaches the upper boundary of the channel. I recommend placing a stop-loss below 1190.
CREDITACC BUY@1138. STOP LOSS 1105 TARGET UPSIDE ON CHART#CREDITACC at 1138. The current market price is 1281, and you have set a stop loss of 1105. You are also advising to consult a financial advisor before making any investment decisions.
I am not a financial advisor and cannot provide any specific investment advice. However, I can provide some general information about the stock :#CREDITACC.
#CREDITACC is a financial services company that provides a variety of products and services to businesses and individuals. The company's stock has been on a downward trend in recent months, but it has recently started to rebound.
The current market price of 1281 is above the 50-day moving average of 1250, which is a bullish signal. The stock is also trading above its 200-day moving average of 1200, which is another bullish signal.
However, the stock is still trading below its all-time high of 1400, which is a bearish signal.
Overall, the technical analysis of the stock #CREDITACC is mixed. There are some bullish signals, but there are also some bearish signals.
If you are considering buying the stock, I recommend that you consult with a financial advisor to get their opinion.
The stock is trading at 1281, which is above the 50-day moving average of 1250 and the 200-day moving average of 1200.
The stock is still trading below its all-time high of 1400.
The stock's RSI is 54.4, which is in the neutral range.
The stock's MFI is 26.1, which is in the oversold range.
The stock's MACD is above its signal line, which is a bullish signal.
The stock's ADX is 45.3, which indicates a strong trend.
Overall, the technical analysis of the stock NSE:#CREDITACC is mixed. There are some bullish signals, but there are also some bearish signals.
If you are considering buying the stock, I recommend that you consult with a financial advisor to get their opinion.
Here are some additional points to consider:
The company's financial performance has been strong in recent quarters.
The company has a large customer base and a diversified product offering.
The company is expanding into new markets.
The company is facing some challenges, such as increasing competition and regulatory changes.
Overall, I believe that NSE:#CREDITACC is a good stock to consider for investment. However, I recommend that you do your own research before making any investment decisions.
go long trendline supportgo long in creditaccess grame. touched trendline third time. target 1385 stoploss 1240
CREDITACC - Bullish Candle with High VolumesNSE: CREDITACC is closing with a bullish candle supported with volumes.
Today's volumes and candlestick formation indicates strong demand and stock should move to previous swing highs in the coming days.
The stock has been moving along the horizontal support for the past few days which is indicating demand.
One can look for a 8% to 12% gain on deployed capital in this swing trade.
The view is to be discarded in the event of the stock breaking previous swing low.
#NSEindia #Trading #StockMarketindia #Tradingview #SwingTrade
Disclaimer:
This is for educational purposes only.
CREDITACC Positional Buy IdeaNSE:CREDITACC is consolidating for very long time. My idea is to take entry at the level of 915 with stop loss of 845 (-70 Points).
Can hold till targets of 1000 (+85 Points), 1030 (+115 Points) & 1170 (+255 Points). This could be very high reward idea.
Note: This is my personal analysis, only for learning. Thanks.
CREDIT ACC AS ALWAYS READY TO FIRE Credit acc is typically range bound share on 4 month and create a trend line breakout any day any time that share give 10% to 20% return you can trust on that chart and make profit in that now price is 1017 buy above 1040 trg will be 1100/1150/1200/1300/1400 sl 1050 take risk according to your risk bearing capacity and discuss with your financial advisory first.
CREDIT ACCESS GRAMEEN LTD VIEW for TomorrowIntraday view for Credit access grameen ltd for tomorrow
Resistance area 1035-1040
Considering above for a buying opportunity
with strict sl and risk reward consider
1005 area is having a support.. below that fall expectation
Considering above for a buying opportunity
with strict sl and risk reward consider
CREDITACCESS GRAMEEN - BEARISH HARMONIC PATTERN !
Bearish Harmonic Pattern Established, possible targets mentioned in the chart
Disclaimer - This is not a buy or sell advice. I am sharing what I see on the chat & what I am trading, based on my own knowledge & understanding. Please consult your financial advisor before taking any bets in the stock market. I will not be responsible for any profit/loss you incur on your trades based on my published ideas.
STOCK ANALYSIS CREDIT ACCESS GRAMEENlevel to watch: above 1000
Target: open
Sl: Below 983 on closing basis daily time frame
Horizon: one month
our view only no recommendations Watch video for detailed analysis.
Regards.
Credit Access Grameen BreakoutThe stock has broken out and retested, therefore may undergo a reversal rally. Trade is supported by Supports Nearby.
Risk Reward Ratio - 2:1
SL is placed below the support zone & the lower trendline. The target is placed near resistance.
Credit Access Grameen BreakoutThe stock has broken out and retested, therefore may undergo a reversal rally. Trade is supported by brokerage calls and Supports Nearby.
Risk Reward Ratio - 2:1
SL is placed below support zone & the lower trendline. The target is placed near resistance.
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