Some analysts feel that SKS Microfinance has good business prospects as it revamped its business model following the crisis in the microfinance sector in Andhra Pradesh.
The microfinance institution (MFI), which was incurring loss since early 2011, posted profit after a long gap in December 2012 quarter.
It announced a marginal net profit of Rs 1.15 crore during Oct-Dec 2012 as it adopted a sensible and workable market-driven model, analysts feel.
Microfinance firms with the right approach can address poverty alleviation in India, where banks are unable to reach the bottom of the pyramid, analysts opine.
On August 16, 2010, the shares of SKS Microfinance debuted in the stock exchange at an issue price of Rs 985 per share. The shares of the Andhra-based MFI hit an all-time low of Rs 54 after the crisis. Later, it recovered nicely to Rs 121 as foreign investors are said to be buying the stock.
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