Stock Market Expert: Share Of Credit Access Grameen With 9% Discount

Rudra Investment Stock Market Expert says There was another stock listing on Thursday in the stock market. credit access Grameen's shares are listed on the BSE with a discount of 8.77 per cent to Rs 385. Credit Access Village had fixed the issue price of Rs 422 for the listing. After listing, the credit access Grameen's share went up to Rs 414.80. credit access Grameen's IPO was 2.21 times subscribed. QIB quota was more than 5 times while retail quota was not full.

Learn About The Company

Credit access is in the business of distributing small loans to poor women in rural areas. The company has a preference in 132 districts of 8 states of the country. These 8 states are from Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh, Madhya Pradesh, Odisha, Kerala and Goa and Puducherry. The company has a total of 516 branches and 4544 loan officers. The company gives loans under the Live Liability Group model. According to the Crisil Research study, it is India's third-largest NBFC-MFI in terms of gross loan portfolio by March 2017.

How is the financial position

Between FY15 and 2018, the company's total income has increased by 48 percent according to the annual growth rate compounding. During this period, net interest has increased by 54 per cent according to the annual growth rate. 

Stock Market Expert belief The company's profits increased at the rate of 37 per cent compound annual growth rate. During the financial year 2013 to 2018, the company's asset under management has increased from Rs 57.97 per annum to Rs 4,975 crore. The company's asset quality is better. The problem of trapped debt is low.

Lending model

Asset Quality Healthy due to Robust Customer Selection and Risk Management Policy. The problem of NPA is very low. Due to the deep penetration in rural areas and due to diversifying the portfolio, the company's business model is better. In order to lend, a group is identified according to the income of his family and income on the basis of family income. After this loan is given on the basis of single capacity. But the debt repayment is from the whole group. This reduces the risk of debt squeezing.