SKS Microfinance may rally to Rs 120: SP Tulsian

Tulsian told CNBC-TV18, “The indications had already come in where SKS Microfinance has stated that they are expecting a loss of about Rs 30 to Rs 50 crore. In fact I see that a more of cleaning up process which has completed in FY12 because if you see the losses having posted by the company in FY12 Rs 300 crore losses practically in each quarter has cleaned the balance sheet.”

He further added, “The losses which we are expecting now in Q1 maybe to the extent of about Rs 30-40 crore is largely because of the non deployment of the funds which the company has been sitting on as on March 31 to the extent of maybe as high as Rs 750 to Rs 800 crore so now the revival of the business activity will really happen or will see getting reflected in the first quarter. So because of that I am keeping my positive stance though the stock has seen a good run up- it use to rule at about Rs 68 to Rs 70 maybe a month back and move to about Rs 91. But post results and the indications or the guidance which we will be hearing from the management after the announcement of the Q1 results will make the positive bias on the stock which can move to about Rs 120 in the next couple of months also.”