Shares of CreditAccess Grameen surged as much as 10.7% to an intraday high of Rs 1,496.70 on Thursday, marking a second consecutive session of gains and a cumulative rally of around 20% in two trading sessions. The sharp rise in the stock comes after the microfinance lender reported a return to profitability in its December quarter results, compared with a net loss in the same period last year.

In the third quarter, CreditAccess Grameen posted a net profit of Rs 252 crore, reversing a net loss of Rs 100 crore in the year ago period. The improvement was supported by lower provisions for bad loans, which fell to Rs 343 crore from Rs 752 crore in the previous year.

The company’s pre provision operating profit (PPOP) also rose 9.2% year on year to Rs 681 crore. However, the lender’s gross non performing assets (GNPA) ratio increased slightly to 4.04% from 3.65% in the previous quarter.

“Our third quarter performance reaffirms the strength and stability of our business model,” said Managing Director Ganesh Narayanan.

The company’s assets under management (AUM) grew 7% year on year to Rs 26,566 crore. “We have witnessed normalisation in asset quality trends across our operating regions, enabling us to refocus on growth with confidence,” he added.

Currently, CreditAccess Grameen is trading with a market capitalisation of approximately Rs 23,366 crore. In today’s trading session, the stock touched a 52 week high of Rs 1,496.70, reflecting strong investor interest and positive market momentum following the company’s return to profitability.

On the valuation front, the stock has a price to earnings (PE) ratio of 44.7, indicating that investors are paying a premium for its earnings potential. The price to book (PB) ratio stands at 3.11, showing that the market values the company at more than three times its net asset value. These metrics suggest that while the stock is relatively expensive, the market is optimistic about its growth prospects.From a technical perspective, the 14 day Relative Strength Index (RSI) is 58.0, which is in the neutral range. Generally, an RSI above 70 signals overbought conditions, while below 30 indicates oversold levels. Additionally, CreditAccess Grameen is trading above all key moving averages, from the short term 5 day SMA to the long term 200 day SMA, indicating consistent bullish momentum across multiple timeframes.

Overall, the stock is showing strong technical strength and sustained investor confidence, supported by its recent earnings turnaround, even as it trades at premium valuation levels.

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