Creditaccess Grameen IPO: Strong growth in financials; Subscribe

Hem Securities | Aug. 7, 2018, 11:35 a.m.

Valuation:
The company is bringing the issue at p/b multiple of 2.94 on post issue book value at higher end of price band of Rs 418-422/share. Although co has shown strong growth with CAGR of more than 50% from FY14 to FY18 in its financials added by solid fundamentals as some of the co’s ratios are one of the best in industry but low ROE which will dilute post listing is a concern . Hence, we rated issue a “Subscribe” one with limited upside potential.



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