Morgan Stanley upgrades SKS Microfinance to overweight, shares gain

By: |
New Delhi | Updated: December 17, 2015 4:30:39 PM

SKS Microfinance shares gained over 1 per cent in the early trade on Thursday after Morgan Stanley upgraded the microfinance company to overweight on strong medium-term earnings visibility.

SKS Microfinance shares, Sensex, Nifty, Stock market todayAt 10.12 am, the share price of SKS was trading 1.30 per cent up at Rs 473.10. The scrip opened at Rs 471.90 and had touched a high and low of Rs 474 and Rs 468.60, respectively, in trade so far. (Photo: Reuters)

SKS Microfinance shares gained over 1 per cent in the early trade on Thursday after Morgan Stanley upgraded the microfinance company to overweight on strong medium-term earnings visibility. The global financial firm had ‘equal weight’ ratings on SKS Microfinance earlier.

At 10.12 am, the share price of SKS Microfinance was trading 1.30 per cent up at Rs 473.10. The scrip opened at Rs 471.90 and had touched a high and low of Rs 474 and Rs 468.60, respectively, in trade so far. Sensex was up 27.52 points at 25,521.89.

Later, the scrip closed 3.30 per cent up at Rs 482.45.

In a report, Morgan Stanley said, “RBI recently doubled loan limits for shorter-tenor loans; this should drive higher loan growth and operating efficiency at SKS. However, long-term uncertainty remains, due to not receiving small finance bank licence. We see very strong earnings growth in the near-to-medium term.”

In the past one year, the share price of SKS Microfinance soared 27.35 per cent and outperformed benchmark index BSE Sensex which fell 4.80 per cent during the same period. The share price of SKS Microfinance jumped from Rs 366.75 on December 16 last year to Rs 467.05 on Wednesday (December 16 this year).

For the quarter ended September 2015, the company posted net profit of Rs 77.86 crore, up 37.19 per cent, against Rs 56.75 crore in the corresponding quarter a year ago.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.