CreditAcc. Gram. (CREDITACC)
TurnaroundFairStock Score: 56/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,549.4 |
| Market Cap | ₹24,830.61 Cr |
| P/E Ratio | 20.58 |
| ROCE | 9.55% |
| ROE | 16.36% |
| Dividend Yield | 0% |
| Profit Growth | 719.72% |
| Debt/Equity | 3.03 |
| Sales Growth | 21.92% |
| Free Cash Flow | ₹1,833 Cr |
| Promoter Holding | 66.28% |
| 52-Week Range | ₹1,113 — ₹1,634.4 |
| Sector | Finance |
| Book Value | ₹489.54 |
Strengths
- Promoter holding of 66.28% aligns shareholder and management interests.
- Piotroski F-Score of 8/9 indicates recent improvement in financial health and operational efficiency.
- Free cash flow of ₹1,833 Cr offers a meaningful liquidity cushion despite elevated leverage.
- Latest quarter net profit of ₹252 Cr on ₹1,490 Cr sales hints at a recovery in momentum.
Concerns
- Profit growth is sharply negative at -44.93%, and ROE is just 6.98%, showing weak earning power.
- Valuation is demanding: P/E of 41.75 and P/B of 2.86 offer no margin of safety, especially with Graham Number at ₹546.51.
- Debt/Equity of 2.94 and Altman Z-Score of 1.20 signal high financial risk.
- Near-zero sales growth of 1.12% and no dividend provide little support for the current price.
AI Analysis
I prefer businesses that throw up simple, predictable earnings. CreditAcc. Gram does not meet that test today. Sales growth is barely 1.12%, profits are down 44.93%, and return on equity is only 6.98% — far below the 15% I look for in a financial institution. The debt-to-equity ratio is 2.94, and the Altman Z-Score of 1.20 sits in the distress zone. A P/E of 41.75 for a company with falling earnings is not a bargain; it is a hope. The Graham Number is ₹546.51 against a price of ₹1,243.30, giving a margin of safety of -131.5%. I cannot take comfort in a DCF value of ₹6,129 while actual profits are shrinking; I prefer hard book value and sustained earning power. On the positive side, promoter holding of 66.28% is healthy, the Piotroski F-Score of 8/9 suggests recent fundamentals are improving, and free cash flow of ₹1,833 Cr provides a cushion. The latest quarter’s net profit of ₹252 Cr on sales of ₹1,490 Cr shows a possible spark of revival. But one quarter does not make an investment. In microfinance, leverage and credit cycles can change quickly. I would keep it on a watchlist, not in the portfolio, until profitability and underwriting prove durable.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer