SKS Microfinance is all set to list on the exchanges today. The issue price has been fixed at Rs 985 per share. Udayan Mukherjee, Managing Editor of CNBC-TV18 believes the stock may see price of Rs 1000-1050 a share on listing and may go upto Rs 1150 in the near-term.
According to Mukherjee SKS Micro will be in the category of stocks, which would forever trade expensive. "We have seen some of these stocks in the past, which are very niche/novelty kind of theme stories-like some of the private banks that have always traded at very premium valuations of four times book but they've always continued to generate returns from those kinds of elevated valuation levels," he adds.
On the business front, he believes, it is not very difficult to conceive SKS growing its balance sheet and its profitability by 40-50% for the next 2-4 years. "This business is quite nascent for them and they are growing at that trajectory. Given the opportunity those kinds of growth levels could sustain for at least three-years if not more from here."
