SKS Microfinance stock target slashed

JPMorgan has cut stock target price of troubled financier SKS Microfinance to Rs 100 from Rs 200 and retained its 8216;underweight8217; rating citing increasing non-performing assets NPAs and need of recapitalisation.

We believe the company could face going-concern issues8230;. A strategic deal may be required,as a QIP is unrealistic,the stock being down 26 percent last week,said JPMorgan.

The bank now values SKS Microfinance at 28 percent of assets while most non-banking finance companies trade at 33-40 percent of assets.

At 10:55 a.m.,the stock was locked at the its maximum daily decline limit of 5 percent at 141.95 rupees.

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