Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd
“Creditaccess Grameen (CAGL) share price jumped 9% during the trading session and closed 3% up, on news of fundraising and improvement in collection efficiency. The Board of Credit Access Grameen approves fundraising up to Rs 1000 cr via equity issue. This fundraising will help CAGL in two ways a) help them to meet the regulatory requirement of promoter holding of 75% which is currently at 79.71%. b) I uncertain time fundraising will help them to shore up capital and support the future growth of the business. CAG share price throughout the day saw buying interest today as the company has given a business update which is positive. In August collection efficiency improved to 82% from 76% in July, and 74% in June. Moratorium reduced from 24% in June to 18% in August. Credit access currently trades at 3.7x on TTM book value, which is premium compared to listed peers Satin credit and Spandana Sphoorty. MNC parentage and market leadership position will support premium valuation.”
Shares of CreditAccess Grameen Ltd was last trading in BSE at Rs.703.4 as compared to the previous close of Rs. 689.35. The total number of shares traded during the day was 29514 in over 2393 trades.
The stock hit an intraday high of Rs. 749 and intraday low of 685.85. The net turnover during the day was Rs. 21203231.
