SKS Microfinance jumps on reports foreign brokerage initiates buy rating

SKS Microfinance jumped 7.55% to Rs 375.30 at 12:35 IST on BSE after a foreign brokerage house reportedly initiated rating on the stock with a buy rating.

Meanwhile, the BSE Sensex was up 84.34 points, or 0.3%, to 27,881.35.

On BSE, so far 7.8 lakh shares were traded in the counter, compared with an average volume of 3.4 lakh shares in the past one quarter.

The stock hit a high of Rs 379.50, also a 52-week high for the stock. The stock hit a low of Rs 354.15 so far during the day. The stock hit a 52-week low of Rs 163.70 on 10 January 2014.

Shares of non-banking microfinance company had underperformed the market over the past one month till 8 December 2014, falling 2.51% compared with 0.9% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 4.94% as against Sensex's 2.93% rise.

Non-banking microfinance companies have resumed their growth trajectory, a foreign brokerage house reportedly said. It expects earnings compounded annual growth rate (CAGR) of 66% for the period from financial year ending 31 March 2015 (FY 2015) to (FY 2017), report added.

SKS Microfinance's net profit jumped 247.3% to Rs 56.75 crore on 48.7% rise in total income to Rs 201.02 crore in Q2 September 2014 over Q2 September 2013.

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