ASA International – shares trebled from 70p in the last year, more to come, now at 192p trading on only 4.5 times earnings, TP 335p

Mark Watson-Mitchell - 08.12.2025

This group’s shares have trebled since I featured them a year ago and there is still so much more to come yet!

Last Thursday, 4th December, ASA International (LON:ASAI) issued a surprise Trading Update stating that:

“Building on the sustained momentum seen during the first half of the year, the 2025 full year outlook remains positive with improved business and financial performance driven by continued strong client demand and loan portfolio growth.

Accordingly, the expectation is that both underlying and reported net profit for 2025 will significantly exceed the current company compiled consensus for FY 2025 of $48.3m.”

Stunning Price Performance

The shares hit 213.70p in early October, that was a couple of weeks before its Q3 Business Update, subsequent to which they eased back to 168p on profit-taking before last week hitting 208.33p in reaction to the Update news.

They closed the week at 192p, at which level they trade on a mere 4.5 times current year price-to-earnings ratio, and just 4 times prospective.

That is too cheap a rating and in 2026 the upwards progression in price should continue.

We will know more come Thursday, 29th January next year, when the group releases its Q4 Business Update, by which time the shares could well be on the move ahead again.

The Business

ASAI is one of the world's largest international microfinance institutions, with a strong commitment to financial inclusion and socioeconomic progress.

Microfinance is the provision of financial services to the poor.

This involves small amounts of savings, credit, insurance and money transfer services.

There is significant net demand for such financial services in many areas of the developing world, especially in rural areas.

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.

ASA International provides small socially responsible loans, bank accounts, savings and other financial services to start or grow businesses.  

The business, which has over 2,016 branches, across 13 countries, handling its 2.7m clients, operates in Pakistan, India, Sri Lanka, The Philippines, Myanmar, Ghana, Nigeria, Sierra Leone, Tanzania, Kenya, Uganda, Rwanda and Zambia. 

Management Comment

On Tuesday, 21st October, the group declared an update on its business operations for the three-month period to end-September, at which time CEO Rob Keijsers stated that:

"Our operational performance in Q3 reflects the ongoing strength and resilience of ASA International's business model.

With continued growth in our loan portfolio and client base-particularly in Pakistan, Tanzania, Uganda, Myanmar, and Nigeria-we are delivering on our mission to expand financial inclusion across our operating markets.

The successful digital transformation in Ghana marks a major milestone, offering a more compelling and seamless offering to our clients and setting the stage for broader resilience, efficiency and innovation across the Group.

We remain focused on sustainable growth, operational excellence, and empowering underserved communities."

The Equity

There are some 100m shares in issue.

The larger holders include Catalysts Microfinance Investment (37.8%), Conifer Capital Management (19.53%), APG Asset Management (18.67%), Phoenician Capital (10.10%), RWC Asset Management (4.12%), and Renta 4 Gestora (3.37%).

Broker’s Views

There are just three brokers following the group closely, the consensus average shows a Target Price of 285p, the Lowest at 259p, and the Highest at 335p.

That Highest Target Price of 335p was increased from 275p last week by analysts Rahim Karim and Jens Ehrenberg, at Cavendish Capital Markets.

The brokers state that:

“The shares have continued to perform well through 2025, up 106% YTD.

Our new 335p target price is based on our FY26E target adj. P/E of 7x and implies 87% potential upside.

We believe continued momentum and consistent delivery against earnings expectations are key to unlocking value for ASAI.

Further operational progress and the roll-out of its digital transformation underpin our assumptions that ASAI will continue to grow its loan book with stickier and more profitable clients.”

Their estimates for the current year to the end of this month are for revenues of $243.0m ($187.7m), with adjusted pre-tax profits almost doubling to $114.0m ($63.5m), lifting its adjusted earnings to 43.1p (27.2p) and paying a dividend of 8.0p (5.6p) per share.

For 2026 they look for $273.7m revenues, $131.4m profits, earnings of 48.0p and a dividend per share of 11.8p.

In My View

I got it wrong in December last year when I concluded my feature on the group, stating that:

“this really is an undervalued situation that needs to be followed.

Its shares at 70p, offer at least a 50% uplift in the short-term – it just takes other investors to realise!”

Well they did!

And took them up not by 50% but by an added 200% to 213.70p at their best.

Now, after profit-taking, at 192p, I see them making another 50% plus advance!

I now set another easily achieved Target Price of 240p.

(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)