SKS Microfinance gains after securitization deal

SKS Microfinance rose 1.15% to Rs 198 at 14:17 IST on BSE after the company said it completed eleventh securitization transaction during the current financial year of Rs 183.02 crore.

The company made the announcement after market hours on Monday, 24 March 2014.

Meanwhile, the BSE Sensex was almost flat at 22,056.36.

On BSE, so far 91,000 shares were traded in the counter, compared with an average volume of 2.95 lakh shares in the past one quarter.

The stock hit a high of Rs 199.65 and a low of Rs 195.65 so far during the day. The stock hit a 52-week high of Rs 213.60 on 7 March 2014. The stock hit a 52-week low of Rs 95.60 on 24 May 2013.

The stock had outperformed the market over the past one month till 24 March 2014, rising 6.27% compared with the Sensex's 5.98% rise. The scrip had, however, underperformed the market in past one quarter, falling 5.07% as against Sensex's 4.86% rise.

The small-cap company has an equity capital of Rs 108.21 crore. Face value per share is Rs 10.

With this, the total sum of securitizations completed for the fiscal year ending March 2014 (year to date) is Rs 1560.96 crore, the company said in a statement.

The entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines. The pool is rated AA (SO) by a leading rating agency signifying a 'high degree of safety regarding timely servicing of financial obligations'. Such instruments carry a very low credit risk, the company added.

SKS Microfinance's net profit galloped 1763.5% to Rs 21.43 crore on 54.8% growth in total income to Rs 139.66 crore in Q3 December 2013 over Q3 December 2012.

SKS Microfinance is a non banking financial company - micro finance institution (NBFC-MFI), registered and regulated by the RBI, whose mission is to provide financial services to low-income households. SKS operates across 15 states of India. They include: Andhra Pradesh, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala and Punjab.

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