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Marketmen’s radar scanning for beaten down stocks today locked in on SKS Microfinance. The stock, which has gained over 20 per cent since September 1, closed Wednesday at Rs 125, a gain of 2 per cent over the previous day.
Trading volumes have also been on the rise in the last few days. On Tuesday and Wednesday, Deutsche Securities sold 50 lakh and 45 lakh shares to Royal Bank of Scotland and Morgan Stanley respectively.
According to analysts, the possible reason for the rise in the SKS Microfinance stock price was the market rally. “Value-buyers for the stock are not there. It is trading significantly below its intrinsic value. There is a lot of negativity surrounding this stock and it would make sense to opt for other better stocks,” said Madhumita Ghosh, Head of Research, Unicon Financial Intermediaries.
SKS Microfinance, which is under trade-to-trade segment on the bourse where delivery is compulsory, raised funds from Kumaon Investment Holdings by allotting about 45 lakh shares.
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