Antique Stock Broking's report on SKS Microfinance"SKS has emerged as one of the strongest player in the microfinance space post its turnaround over FY12-14. It is the only diversified microfinance player with a significant presence across most states in India. Its improving credit profile has helped in lowering borrowing costs to an extent that it is able to lend at an interest rate of 22%, making it the lowest cost microfinance lender in the country. To add to this, there is a possibility that SKS could be awarded a small finance bank license by the RBI.""The benign environment and dominant position will enable SKS to post AUM / earnings CAGR of 37% / 36% over FY15-17e. We remain confident on SKS's growth as well as asset quality prospect given the strong adherence to the spirit of JLG. The recent price correction provides an opportunity to accumulate the stock. We assign price target of INR570/share which discounts FY17e earnings by 21x. Upgrade to BUY", says Antique Stock Broking.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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