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Wednesday, August 8, 2018

Creditaccess Grameen IPO opens - Should you apply? Brokerage Analysts Recommendations

Brokerage recommendations for Creditaccess Grameen IPO

Antique Broking
Recommends ‘Avoid’.
Geographic concentration, lack of technology and people, and its inability to offer beyond joint lending group loans raises questions on long-term competitive positioning.
Valuations do not leave investors with much margin of safety.

Emkay Global
Recommends ‘Avoid’.
Valuations doesn’t justify adherent business risks and low returns on equity.

SMC Global
Recommends ‘Subscribe’.
While 11.8 percent return on equity for 2017-18 is still sub-optimal compared to some of the large MFIs, the valuation adequately captures this and any improvement in the return on equity will aid further valuations.

Prabhudas Lilladher
Recommends ‘Subscribe’ for long term.
Expensive valuations and high business concentration risks are key deterrents
Improvement of return on equity is crucial
Listing gains may be limited.

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