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Economic Times
7 days ago
- Business
- Economic Times
Turnaround stocks: IFCI, Shree Renuka Sugars among six BSE 500 stocks to swing to profit in Q4
Despite their strong quarterly turnarounds, stock market performance in CY2025 has been mixed for these six companies. Six BSE 500 companies, including CreditAccess Grameen and IFCI, reported profits in Q4FY25 after losses in the previous quarter. While CreditAccess Grameen and IFCI have seen positive stock returns in CY2025, others like Mahindra Lifespace Developers have lagged. Experts suggest accumulating Mahindra Life and Nuvoco long-term, favoring Balrampur Chini over Shree Renuka Sugars. Tired of too many ads? Remove Ads Mixed CY2025 stock returns Tired of too many ads? Remove Ads What to do with them? As the Q4FY25 earnings season is set to culminate this week, six listed companies in the BSE 500 index have scripted a strong turnaround, reporting profits in the reported quarter after losses in the previous quarter. The notable names which have delivered a remarkable shift in performance include CreditAccess Grameen Mahindra Lifespace Developers , Nuvoco Vistas, and Shree Renuka Sugars As of May 28, 2025, 461 companies in the BSE 500 index declared their quarterly Grameen saw a striking reversal, posting a profit of Rs 47.21 crore in Q4FY25 compared to a loss of Rs 99.52 crore in Q3. IFCI also swung to a profit of Rs 260.43 crore from a loss of Rs 8.74 crore. Similarly, Graphite India turned profitable with Rs 49 crore versus a Rs 21 crore QoQ loss. As for Mahindra Lifespace Developers, the real estate company reported Rs 85.09 crore in earnings after a Rs 22.47 crore and building material company Nuvoco Vistas posted Rs 165.54 crore in Q4 profits against a loss of Rs 61 crore, while Shree Renuka Sugars recovered from a massive Rs 203.70 crore loss in Q3FY25 to post Rs 93.10 crore in net profit in the quarter under their strong quarterly turnarounds, stock market performance in CY2025 has been mixed for these companies. CreditAccess Grameen has rewarded investors with a 33.69% return so far this year, and IFCI is up 12.78%. However, others have lagged—Graphite India is down 5.84%, Mahindra Lifespace Developers has slipped 20.57%, Nuvoco Vistas is nearly flat with a marginal 0.06% uptick, and Shree Renuka Sugars has declined 15.89%, indicating investor caution despite earnings Bathini, Director-Equity Strategy at WealthMills Securities, summed up the Q4 season as a decent quarter with no negative surprises considering the domestic and global uncertainties. In his view, all six stocks are "decent" CreditAccess, he said that the company's performance is improving. "BFSI as a sector is doing well, and NIMs are gradually getting better. The RBI policy announcements could act as a trigger if rates are cut," he said. He declined to recommend the Mahindra Life and Nuvoco, he suggested accumulation with a long-term view. As for Renuka, he said his top bet in the sugar sector is the "sector bellwether" Balrampur Chini. He has an 'Avoid' view on state-run on the growth story of IFCI, Share. Market expert Om Ghawalkar said that the turnaround came on the back of strategic divestments and a capital infusion by the government. Although the revenue of this state-run company dropped 41.6% YoY due to elevated NPAs and ongoing consolidation, the improved bottom line has powered a strong market reaction with the stock rallying 60% this for Shree Renuka Sugars, growth in ethanol sales and tighter cost control were key drivers, this analyst said. "Despite a slight decline in annual revenue, operational improvements helped narrow full-year losses. The stock is in a clear uptrend and has gained nearly 20% while trading above key moving averages," he added.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Economic Times
21-05-2025
- Business
- Economic Times
CreditAccess expects recovery amid improving PAR performance
The stock of CreditAccess Grameen has lost nearly 9% in the past three trading sessions after the country's largest listed microfinance company declared rising slippages, higher credit cost, reduced collection efficiency, and rising gross non performing assets (GNPA) ratio for the March quarter. ADVERTISEMENT On a positive note, the lender reported lower accretion in the portfolio at risk (PAR) in states other than Karnataka in the March quarter. The condition in Karnataka is expected to improve in the second half of the current fiscal year. The credit cost is expected to normalise in the second half of FY26 to around 3.5% from 7.8% in FY25. Analysts have reduced FY27 earnings estimates by 4-8%. Karnataka and Tamil Nadu, which contribute 31% and 19% to the gross loan portfolio respectively, exhibited higher delinquencies in the March quarter. An ordinance issued by these states to protect vulnerable borrowers from coercive loan recovery affected the collection efficiency. The PAR-AUM (assets under management) ratio in Karnataka and Tamil Nadu increased sequentially to 2.4% and 4.5% in the March quarter from 1.2% and 3.2% in that order. The ratio also shot up in Bihar to 7.3% from 5.3% by similar comparison though the state has a relatively small share of 4.8% in the total loan book. The company expects a reversal in the PAR trend not before the September credit cost shot up to 7.7% in FY25 from 2.1% in the previous year due to higher provisioning and write-offs. This also affected the return ratios. The return on assets (RoA) contracted to 1.9% from 5.6% in FY24 while the return on equity dropped to 24.9% from 7.7%. ADVERTISEMENT The situation is likely to improve in the current fiscal year given the possibility of a recovery from the December quarter. The company expects to limit credit cost between 5.5% and 6% for FY26 while RoA and RoE are likely to be 2.9-3.4% and 11.8-13.3% respectively. The company's gross loans fell by 2.9% to Rs 25,948 crore in the March 2025 quarter. Net profit nearly halved to Rs 47.2 crore from Rs397 crore a year ago. Net interest margin (NIM) contracted by 40 basis points to 12.7%. Motilal Oswal Financial Services has cut the FY27 earnings estimate by 10% amid higher credit cost and lower credit growth. It expects AUM growth of 18% between FY25 and FY27. The brokerage expects CreditAccess to bounce back to normalcy faster than other microfinance peers and therefore, it has raised the stock's target price to Rs1,425 from Rs1,170. The stock was traded at Rs1,101 on Wednesday on the BSE. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
21-05-2025
- Business
- Time of India
CreditAccess expects recovery amid improving PAR performance
CreditAccess Grameen faces rising delinquencies and credit costs, but analysts expect asset quality to recover gradually from the second half of FY26. CreditAccess Grameen stock fell 9% in three sessions after Q4 showed rising slippages, higher credit cost, and weakening asset quality. Analysts cut FY27 earnings, but expect a rebound from H2FY26 as collection efficiency improves. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The stock of CreditAccess Grameen has lost nearly 9% in the past three trading sessions after the country's largest listed microfinance company declared rising slippages, higher credit cost, reduced collection efficiency, and rising gross non performing assets (GNPA) ratio for the March a positive note, the lender reported lower accretion in the portfolio at risk (PAR) in states other than Karnataka in the March quarter. The condition in Karnataka is expected to improve in the second half of the current fiscal year. The credit cost is expected to normalise in the second half of FY26 to around 3.5% from 7.8% in FY25. Analysts have reduced FY27 earnings estimates by 4-8%.Karnataka and Tamil Nadu, which contribute 31% and 19% to the gross loan portfolio respectively, exhibited higher delinquencies in the March quarter. An ordinance issued by these states to protect vulnerable borrowers from coercive loan recovery affected the collection PAR-AUM (assets under management) ratio in Karnataka and Tamil Nadu increased sequentially to 2.4% and 4.5% in the March quarter from 1.2% and 3.2% in that order. The ratio also shot up in Bihar to 7.3% from 5.3% by similar comparison though the state has a relatively small share of 4.8% in the total loan book. The company expects a reversal in the PAR trend not before the September credit cost shot up to 7.7% in FY25 from 2.1% in the previous year due to higher provisioning and write-offs. This also affected the return ratios. The return on assets (RoA) contracted to 1.9% from 5.6% in FY24 while the return on equity dropped to 24.9% from 7.7%.The situation is likely to improve in the current fiscal year given the possibility of a recovery from the December quarter. The company expects to limit credit cost between 5.5% and 6% for FY26 while RoA and RoE are likely to be 2.9-3.4% and 11.8-13.3% company's gross loans fell by 2.9% to Rs 25,948 crore in the March 2025 quarter. Net profit nearly halved to Rs 47.2 crore from Rs397 crore a year ago. Net interest margin (NIM) contracted by 40 basis points to 12.7%. Motilal Oswal Financial Services has cut the FY27 earnings estimate by 10% amid higher credit cost and lower credit growth. It expects AUM growth of 18% between FY25 and FY27. The brokerage expects CreditAccess to bounce back to normalcy faster than other microfinance peers and therefore, it has raised the stock's target price to Rs1,425 from Rs1,170. The stock was traded at Rs1,101 on Wednesday on the BSE.
Business Upturn
19-05-2025
- Business
- Business Upturn
CLSA on CreditAccess share price: Downgraded to underperform, target price at Rs 1,050
By News Desk Published on May 19, 2025, 07:53 IST CLSA has downgraded CreditAccess Grameen to underperform and set a target price of Rs 1,050, implying a downside of nearly 13% from the current market price of Rs 1,200.00. The brokerage noted that the company reported a net profit of Rs 470 million in Q4, impacted by annualised credit costs of around 9%. It cited ongoing challenges in Karnataka, concerns around over-leveraging, and MFIN guardrails as factors contributing to an expected FY26 credit cost of 5.5%–6%. Management has indicated that the stress could persist for another six months. Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions. News desk at
Business Upturn
19-05-2025
- Business
- Business Upturn
Goldman Sachs maintains sell on CreditAccess Grameen share price, sees 42% downside
By News Desk Published on May 19, 2025, 07:48 IST Goldman Sachs has maintained its sell rating on CreditAccess Grameen, with a target price of Rs 700, implying a potential downside of approximately 42% from the current market price of Rs 1,200.00. The brokerage highlighted that the company's pre-provision operating profit (PPOP) declined 7% year-on-year, though it was 6% ahead of estimates due to sharply lower employee operating expenses. However, credit costs remained elevated at around 9.85%, 35 basis points above Goldman Sachs' expectations, leading to a steep 88% drop in profit after tax on a year-on-year basis. Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions. News desk at
