Kotak cuts forecasts for SKS Microfinance, lifts rating

Kotak cuts forecasts for SKS Microfinance, lifts rating

Mumbai: Kotak Securities has lowered its earnings forecasts for India’s SKS Microfinance for the next three financial years by 27, 28, and 23% respectively but upgraded its rating on the stock to buy, as the company has been beset by regulatory uncertainty.

Shares in SKS Microfinance fell as much as 20% on Thursday after it said a clampdown on business practices by lenders to the poor in the Indian state of Andhra Pradesh threatened to squeeze profits and revenue.

In its note dated Thursday, Kotak set a target price of 950 for the stock. SKS shares were up 6.2% at 680.50 early on Friday.

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