SKS Microfinance hits five-year high ahead of board meet
The stock gained 3% to Rs 635, its highest level since March 2011 on the BSE in intra-day trade.
 "SKS Microfinance hits five-year high ahead of board meet")
SKS Microfinance jumped 3% to Rs 635, its highest level since March 2011 on the BSE, ahead of board meeting tomorrow, May 4, 2016, to consider audited financial results for the quarter/year ended March 31, 2016.
The board will also consider a proposal to raise funds by issue of securities by such mode as permitted under the companies Act, 2013, SEBI (issue of capital and disclosure requirements) Regulations, 2009 and subject to such approvals as may be required,” SKS Microfinance said in a statement.
The board will also consider a proposal to raise funds by issue of securities by such mode as permitted under the companies Act, 2013, SEBI (issue of capital and disclosure requirements) Regulations, 2009 and subject to such approvals as may be required,” SKS Microfinance said in a statement.
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“SKS Microfinance is likely to report strong 66% assets under management (AUM) growth and 126% profit growth on continuous strong credit demand from the target segment, coupled with increase in ticket sizes, which is helping growth further,” Motilal Oswal Securities said in a Q4 results preview.
Reduction in lending rates on the back of declining cost of funds, consistent spreads and increase in one-year loan size by the Reserve Bank of India should boost demand for microcredit, the report said.
Post Q3 (October-December) quarter results, since January 27, the stock rallied 28% as compared to 5% rise in the benchmark S&P BSE Sensex.
For the first nine months (April-December) of the financial year 2015-16, the company had reported 49% year on year growth in net profit at Rs 219 crore. It had profit of Rs 188 crore in the financial year 2014-15.
At 10:25 am, the stock was up 2.5% at Rs 631 with a combined 1.16 million shares changing hands on the BSE and NSE so far.