Gaurang Shah of Geojit BNP Paribas Financial Services told CNBC-TV18, "At Rs 460 SKS Microfinance has done its bit in terms of the earnings also that they delivered. If you are looking at interest sensitives, then our advice would be to look at private sector banks; that is where as a brokerage house we have been extremely bullish and we continue to have that stance. I have got two stock picks amongst the private sector banks. One is a large one, Axis Bank and the other one is a midcap, IndusInd Bank.”
“If you just fall back on the numbers that these banks have delivered, they have been a stellar numbers and the stocks have got rerated. In fact we ourselves have raised our price target to about Rs 640 on Axis Bank and Rs 1080 on IndusInd Bank. In case if the interest rate scenario has to go down, we believe by this calendar year end, December 2015 there will be two more cuts in form of 25 bps which will also be incremental positive. So, in terms of risk return if you are going to purchase SKS Microfinance at these levels then it is not favourable. Axis Bank and IndusInd Bank would be advised,” he added.
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