Shares of CreditAccess Grameen (CAG) rose 6% to Rs 982.25 on the BSE in intraday trade on Wednesday, surging 10% in the past three days after the Insurance Regulatory and Development Authority of India (Irdai) granted CreditAccess a certificate of registration for life insurance. CAG is the largest microfinance institution in India and has the largest microfinance market share in the world.

On Friday, March 31, 2023, CAG announced the completion of three direct transfer transactions totalling Rs 936.63 crore and one PTC transaction worth Rs 98.77 crore in March 2023. In Q4FY23, the company raised Rs 5,840.09 crore through term loans, NCD, MLD, ECB, direct distribution and PTC.

CAG is a niche player with sustained market leadership and consistent performance across cycles, giving confidence in a robust business model. Analysts at ICICI Securities believe that CAG is well-positioned to capture the huge untapped opportunity in the MFI space by penetrating deeper into new and existing geographies and expanding its client base. FY22-25 earnings are expected to grow at a healthy CAGR of 52% and return on assets of around 4%, which will drive valuations, it added. The brokerage firm initiated coverage on the stock with a Buy recommendation and a target price of Rs 1,100 per share.