ASA International Group – too cheap to ignore, shares at 213.50p on just 3.9 times earnings, yielding 6.4%, TP 370p

Mark Watson-Mitchell - 01.05.2026

I got this stock wrong in early December 2024, when I estimated that its shares, then 70p, offered at least a 50% uplift in the short-term.

I was too conservative!

The subsequent rise has seen them hit 248p in late February this year, up 354%, they drifted back to 176p a month later, on understandable short-term profit-taking.

However, they are now on the uptack again and look incredibly appealing.

The First Quarter Trading Update issued yesterday by the ASA International Group (LON:ASAI) showed real strength, while highlighting just how significantly undervalued its shares are at the current 213.50p level.

The Business

The £213m-capitalised group is one of the world's largest international microfinance institutions, with a strong commitment to financial inclusion and socioeconomic progress.

The company provides small, socially responsible loans to low-income, financially underserved entrepreneurs, predominantly women, across South Asia, South East Asia, West and East Africa.

The Q1 Trading Update

The group reported a strong start to 2026, with its Gross Outstanding Loan Portfolio reaching $583.2m as of end-March, which was a massive 25% increase year-on-year, driven by growth in Pakistan, Uganda, and Kenya.

Significant progress was made in winding down the group’s Indian operations, reducing clients by 75% and the loan portfolio by 76% to $7.2m, generating an accounting gain of $11.4m.

Across the group, its client base, excluding India, expanded by 12% to 2.7m.

The company also successfully launched its enhanced banking platform and digital financial services app in Tanzania.

Management Comment

CEO Rob Keijsers stated that:

"Q1 2026 demonstrates the underlying strength and discipline of ASA International's platform. Across our continuing operating platform, we delivered solid portfolio performance alongside continued client growth across key markets, with particularly strong momentum in Pakistan and East Africa.

Portfolio quality remains robust and among the best in the industry, reflecting the effectiveness of our risk management and long-standing client relationships.

We also made decisive progress in reshaping and simplifying the Group, while advancing our digital agenda with the successful rollout of our new core banking system and digital financial services platform in Tanzania.

These actions strengthen our foundation for sustainable growth, enhance operational resilience, and position us well to expand responsible financial access for millions of underserved female entrepreneurs."

The Equity

There are some 100m shares in issue, with institutional investors holding a significant portion, roughly 56.79% of the equity.

The larger holders include Catalyst Microfinance Investment Co. (20.13%), Conifer Capital Management LLC (19.53%), and APG Asset Management NV (18.67%), Phoenician Capital LLC (10.10%), RWC Asset Management LLP (4.12%), Renta 4 Gestora SGIIC SA (3.37%) and Dirk Brouwer (via various vehicles) (19.30%).

Analyst Views

At Cavendish Capital Markets, analysts Rahim Karim and Jens Ehrenberg have a Buy note on the stock, with a very solid 370p Target Price.

For the current year to end-December, they are going for revenues of $315.7m ($260.1m), while pre-tax profits could rise to $129.7m ($103.9m), elevating earnings to 54.1p (42.8p) and paying out a dividend of 13.5p (10.9p) per share.

For 2027, the analysts look for £351.8m revenues, $147.5m profits, with earnings of 61.5p and a payment of 15.4p in dividend.

The 2028 year could see £402.3m in revenues, with $173.3m profits, 72.2p earnings and a dividend of 18.1p per share.

My View

The shares of ASA International look to me to be a screaming Buy at 213.50p.

On the 2025 results, the shares are trading at 4.99 times historic earnings.

On the current year estimates, they are on a 3.94 price-to-earnings multiple.

For next year, the rating drops to just 3.47 times earnings.

By 2028, that ratio falls even lower – to 2.95 times – which is almost like giving money away.

I now see the shares rising further ahead of the group’s AGM on Wednesday, 3^rd May.

On top of those immensely alluring earnings, there is also a massive yield on the shares rising from 5.2% for 2025, to 6.4% this year, 7.3% next year and then a whopping 8.6% for 2028.

As I have clearly stated above, based upon the broker estimates, I consider the shares of ASA International to be an absolute bargain!

(Profile 09.09.24 @ 87p set a Target Price of 130.50p*)

(Profile 23.10.24 @ 67.50p set a Target Price of 102p*)

(Profile 10.12.24 @ 70p set a Target Price of 105p*)

(Profile 08.12.25 @ 192p set a Target Price of 240p*)

ASA International is one of the world's leading microfinance companies