New Delhi: Shares of SKS Microfinance rose as much as 5.75 per cent to Rs 369 on the National Stock Exchange (NSE) after UBS initiate coverage on the stock with ‘Buy' rating and price target of Rs 500.
The brokerage gave the positive rating due to the company's high return on equity (ROE) and its strong growth. UBS expects FY15-17 earnings CAGR of 66 per cent for SKS.
NBFC-micro finance institutions (MFIs) are now regulated by the Reserve Bank of India, and new regulations restrict leverage and lending rates.
The stock opened at Rs 355 and touched a high of Rs 369 on NSE.
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