Good results. Delivered on their earlier guidance and have given a good guidance up ahead. Now to track if they deliver the same.

Hi Guys,

I am new to the entire value investing thing and while I was scouting for stocks to invest and found out CreditAccess. However, I am confused with the recent price movement of CreditAccess.

While I understand that there is ambiguity due to RBI’s stance on NBFC and MFI, however, I felt that this stock has fallen sharply compared to other peers in the industry.

I was trying to list down possible reasons for the same:

• RBI policies [impact seen in the entire industry]
• Increasing D/E [?]
• Future guidance towards the cautious side [?]
• Increasing NPAs [?]
• Also, this industry is cyclical and we are at the cusp of a “bad cycle” now [?] …somewhere increasing NPAs would point towards that [?]
• Election uncertainty: I noticed that a few politicians are talking about loan waivers [?]

IMO, the scrip looked strong fundamentally and rudimentary DCF shows that the stock is undervalued by 20-25%. Also, whenever the fed rate cuts happen, it would have helped with the overall growth of the industry as well.

I was surprised to see a sharp correction of this stock even with good Q4’24 results.

It would be helpful if someone who has a strong understanding of MFI or tracking this stock for a longer period could present their hypothesis.

Thank You.

Im expecting it to bounce back from this level,
Looks like there was a gap to be filled.
Will hold till 50dma crosses 200 dma

Disc. No reco

I refrained from buying Monte Carlo despite low valuations because I observed such brands stores are located on 2nd or 3rd floor of a typical mall. When someone reaches that floor, either he/she has bought clothes already or there is no intent to buy by then and go to a food court
Even the store aesthetics were not great to appeal consumers.

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