SKS Microfinance at new low, down 28% post Q2 nos

SKS Microfinance is frozen at the 5% lower circuit at Rs 150 for the second consecutive day. The stock have seen almost one-third of its value erosion from Rs 209 on November 4, after reporting a net loss of Rs 385 crore for the quarter ended September 2011, much larger than estimates, driven by higher provisions in the non-Andhra Pradesh loan book than those required as per regulatory guidelines. The company had a net profit of Rs 81 crore in the same quarter of previous year.

The only-listed microfinance company had written off Rs 485 crore from October last year to end of September this year, is likely to write off about Rs 300 crore in the next two quarters due to the Andhra Pradesh Microfinance Act, the newspaper report suggests.

Analysts fell that it would be a difficult task to the company, which is planning to raise about Rs 900 crore by issuing equity shares to qualified institutional buyers (QIB) due to overall weak market condition.

A combined 267,065 shares have changed hands on the counter till 1104 hours, and there are pending sell orders for 105,600 shares on both the exchanges.