CreditAccess Grameen Ltd is Rated Hold by MarketsMOJO

Rating Context and Current Position

On 24 October 2025, MarketsMOJO revised CreditAccess Grameen Ltd’s rating from 'Sell' to 'Hold', reflecting an improvement in the company’s overall assessment. The Mojo Score increased by 16 points, moving from 42 to 58, signalling a more balanced outlook. This rating indicates that while the stock is not currently a strong buy, it is also not recommended for selling, suggesting a cautious stance for investors considering exposure to this smallcap finance company.

It is important to note that all fundamentals, returns, and financial metrics referenced in this article are as of 20 January 2026, ensuring that readers receive the most up-to-date information rather than data from the rating change date.

Quality Assessment

CreditAccess Grameen Ltd holds a good quality grade, supported by its strong long-term fundamental strength. The company has demonstrated a compound annual growth rate (CAGR) of 22.00% in net sales, reflecting robust top-line expansion over recent years. This growth trajectory is a positive indicator of the company’s operational capabilities and market positioning within the finance sector.

Despite this, the latest six-month profit after tax (PAT) figures show a decline, with PAT at ₹186 crores, representing a contraction of 68.14%. This flattening of financial results suggests some near-term challenges in profitability, which investors should monitor closely. The company’s dividend payout ratio (DPR) is currently at 0.00%, indicating a conservative approach to shareholder returns amid these earnings pressures.

Valuation Considerations

From a valuation perspective, CreditAccess Grameen Ltd is considered very expensive. The stock trades at a price-to-book (P/B) ratio of 2.9, which is a premium compared to its peers’ historical averages. This elevated valuation reflects market optimism but also implies limited margin for error if the company’s financial performance does not improve.

Interestingly, while the stock has delivered a strong 1-year return of +25.10% as of 20 January 2026, its profits have fallen sharply by 90% over the same period. This divergence between price appreciation and earnings performance highlights the importance of cautious valuation analysis for investors, as the market appears to be pricing in future growth or other positive catalysts.

Financial Trend Analysis

The financial trend for CreditAccess Grameen Ltd is currently flat. The company’s return on equity (ROE) stands at a modest 1.9%, which is low relative to typical benchmarks in the finance sector. This subdued profitability metric, combined with the flat financial trend, suggests that while the company has stable operations, it is not currently generating strong returns on shareholder capital.

Institutional investors hold a significant stake of 25.61%, with their holdings increasing by 0.72% over the previous quarter. This level of institutional interest often signals confidence from more sophisticated market participants who have the resources to analyse company fundamentals thoroughly.

Technical Outlook

Technically, the stock is rated as mildly bullish. Despite recent short-term declines — including a 2.58% drop on the latest trading day and a 3.16% fall over the past week — the stock’s momentum remains positive over the longer term. The 1-year return of +25.10% significantly outperforms the broader BSE500 index return of 7.53%, indicating that the stock has been a market-beating performer despite some volatility.

Investors should weigh this technical strength against the company’s valuation and earnings challenges to determine the appropriate level of exposure.

What the Hold Rating Means for Investors

The 'Hold' rating assigned to CreditAccess Grameen Ltd suggests a neutral stance for investors. It indicates that the stock is fairly valued given its current fundamentals and market conditions, and that investors should neither aggressively buy nor sell at this stage. The rating reflects a balance between the company’s strong sales growth and technical momentum, and its expensive valuation alongside flat profitability trends.

For investors, this means that while the stock may offer some upside potential, it also carries risks related to earnings volatility and valuation premiums. Those considering adding the stock to their portfolio should monitor upcoming quarterly results and sector developments closely to reassess the company’s trajectory.

Summary of Key Metrics as of 20 January 2026

• Mojo Score: 58.0 (Hold)


• Market Capitalisation: Smallcap


• Net Sales CAGR: 22.00%


• PAT (Latest 6 months): ₹186 crores, down 68.14%


• Dividend Payout Ratio: 0.00%


• Return on Equity (ROE): 1.9%


• Price to Book Value: 2.9 (Very Expensive)


• 1-Year Stock Return: +25.10%


• Institutional Holdings: 25.61%, increased by 0.72% QoQ


• Technical Grade: Mildly Bullish

In conclusion, CreditAccess Grameen Ltd’s current 'Hold' rating by MarketsMOJO reflects a nuanced view of the company’s prospects. Investors should consider both the strong sales growth and market-beating returns alongside the challenges of flat profitability and elevated valuation before making investment decisions.

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