Here's why Kunj Bansal picks SKS Microfinance

Kunj Bansal of Centrum Wealth Management told CNBC-TV18, "SKS Microfinance's business has been growing and is likely to grow at 40 percent plus. The return on assets (RoA) are closer to 5 depending on what expectation of growth and numbers you take, it could even be higher or maybe lower. After the correction, because of the market as well as in the stock, we had some news of it not getting the small bank licence and as a result some selling.""With almost a peak of Rs 600, the stock is now available at Rs 440-450 which is price to book of 3-3.5 which for RoA of close to 5 is quite an attractive valuation and that is the reason for picking this stock," he said.