Buy SKS Microfinance
Firstcall Research report on SKS Microfinance
Microfinance Limited was founded in 1997, a non banking financial company micro finance institution, provides micro Pandora Ring finance services to women in the rural areas in India who are enrolled as members and organized as joint liability groups. It offers income generation and mid term loans to self employed women to support their business enterprises, such as raising livestock, running local retail shops, tailoring, and other assorted trades and services. The company also provides mobile loans for financing mobile phones and telephone services; housing loans for the construction of new houses, or improvement and extension of existing houses; and gold loans secured by gold jewelry to meet short term liquidity requirements. In addition, it provides life insurance products. SKS distributes small loans that begin at Rs. 2,000 to Rs. 12,000 (about to poor women so they can start and expand simple businesses and increase their incomes. Their micro enterprises range from raising cows and goats in order to sell their milk, to opening a village tea stall.
company uses the group lending model where poor women guarantee each other loans. Borrowers undergo financial literacy training and must pass a test before they are allowed to take out loans. Weekly meetings with borrowers follow a highly disciplined approach. Re payment rates on our collateral free loans are more than 99% because of this systematic process. The company offers micro insurance to the poor as well as financing for other goods and services that can help them combat poverty. It is committed to creating a distribution network across underserved sections of society in order to Pandora Black Pave Star Charm provide easy Pandora Black Pave Star Charm access to the full portfolio of microfinance products and services. It also looks at using this network to add value to the lives of its members by providing quality goods and services that our members need at less than market rates. SKS delivers microfinance through a joint group liability model. The villages are selected on the basis of a thorough survey and consequently sangam meetings and group recognition tests conducted. The company firmly believes that Technology is one of its biggest differentiator in the industry. It has designed and deployed a web based Business Intelligence portal using state of art technology and a highly flexible and scalable platform to support the business growth and operations and has also built an integrated and encrypted MPLS communication network encompassing a world class Data Centre delivering mission critical services and enhancing collaboration across the organization.
the current market price of Rs. 284.45, the stock P/E ratio is at 27.56 x FY15E and 22.06 x FY16E respectively. Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Pandora Winter Mittens Charm Rs. 10.32 and Rs. 12.90 respectively. Net Sales of the company are expected to grow at a CAGR of 29% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 9.47 x for FY15E and 8.16 x for FY16E. Price to Book Value of the stock is expected to be at 5.90 x and 4.66 x respectively for FY15E and FY16E. We recommend in this particular scrip with a target price of Rs. 327.00 for Medium to Long term investment, says Firstcall Research report.