CreditAccess Grameen shares dropped more than 3% in morning trade after brokerage firm Nomura downgraded it to “Reduce” from “Neutral” and slashed the target price to ₹950.
The downgrade follows as Nomura pointed out a number of challenges for the microfinance (MFI) industry, especially regarding forthcoming state elections in important markets such as Maharashtra, Bihar and Jharkhand, which account for 28% of the company’s assets under management (AUM). The brokerage reports a sharp fall in disbursements and AUM growth, as well as deteriorating asset quality.
As of 10:26 am, CreditAccess Grameen shares were trading 3.29% lower at Rs 1,082.40 on the NSE.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
