Avoid –SKSMICROFIN Cmp Rs.1135
This newly listed stock which has traded just 44trading days has been in news in last few weeks for all negative reason. Many investor and traders have brought into the stock as George Soros Quantum (M) fund, invested about Rs 26 crore to pick up a small stake. But some time brilliant investor too can make mistake and my personnel experience says collecting money from borrowers is never easy and now with many state government imposing strict laws on collection and with legal process in India being weak. Small or Micro financing can be a big failure so I would advised caution in this stock as this is the first company to list so. Investor can wait for few more quarters to know how the company can perform before investing their hard earned money.
http://timesofindia.indiatimes.com/business/india-business/Soros-fund-biggies-invest-in-SKS-Micro/articleshow/6230207.cms George Soros has now identified opportunities to make profit by putting money into the hands of poor Indian women. On Tuesday, his fund, Quantum (M), invested about Rs 26 crore to pick up a small stake in SKS Microfinance, the company that gives small loans exclusively to poor women located in the rural areas.
Shares of SKS Microfinance, the only listed microfinance entity in the country, plunged by about 9% on Friday on concerns that microfinance sector may come under tight government regulations. http://www.financialexpress.com/news/ap-action-axes-sks-microfinance-stock/698106/
http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/finance/30-commit-suicide-in-45-days-to-escape-microfinance-agents/articleshow/6755644.cms About 30 persons have committed suicide in the last 45 days, apparently due to the coercive methods of Micro-Finance Institutions (MFIs) in Andhra Pradesh, a shocking figure that prompted the state government to issue a special ordinance to rein in the MFIs today.
http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/finance/SKS-ready-to-reduce-lending-rate-by-2/articleshow/6756543.cms Vikram Akula, the chief executive officer of SKS Microfinance, on Friday offered to meet the harsh critics of the microfinance sector half-way by declaring that he is willing to reduce his firm’s lending rates by 2%.
