Brokerage firm Goldman Sachs has maintained its bullish opinion on 'CreditAccess Grameen' due to the ongoing slowdown in the microfinance segment. In fact, the brokerage does not see any signs of improvement in the segment at the moment. Goldman Sachs has maintained its Sell call on CreditAccess Grameen. The company has set a target price of ₹ 577 per share for the stock, which reflects a potential decline of 40%.

Let us tell you that the shares of the firm have already fallen 45% from its 52-week high of ₹ 1,736 to ₹ 959 per share. This decline is increasing further at the moment, as the shares of CreditAccess Grameen fell 5% to ₹ 910.15 per share in the morning trade.

The risk of default is increasing
Goldman Sachs said that 37% of the people taking loans from MFIs are defaulting on retail loans or MFIs or both. Goldman Sachs said that retail loans contribute at least $ 18 billion and microfinance loans contribute $ 10 billion to this. The brokerage said that slippage in retail loans has increased by 120 basis points since March 2024 and has reached 4.3%. Earlier this month, CNBC-TV18 had reported that the Department of Financial Services (DFS) is holding meetings with companies from the fintech as well as MFI segments between January 7-16 to understand the issues faced by the industry and also take their feedback. Meanwhile, there are also expectations of more focus on the microfinance sector in the upcoming Union Budget, which has increased the possibility of improvement in this sector. This stock has been included in the coverage by 19 analysts. Out of this, 14 have given a Buy rating. At the same time, 3 analysts have given a Hold opinion. At the same time, 2 analysts have given a Sell opinion on the stock. These analysts expect a rise of about 11% from the current level.