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The stock of SKS Microfinance Ltd tumbled 18.26 per cent on the Bombay Stock Exchange on Monday to touch a new low of Rs 270.80.
The stock had opened for trading at Rs 305 for the first time after the Hyderabad-based company had posted Rs 70 crore net loss in the fourth quarter of 2010-11 on Friday evening and had lost Rs 60.50 by the closure.
The only-listed microfinance institution in the country said the loss was a ‘direct' result of Rs 236 crore provisioning necessitated by the Andhra Pradesh Microfinance (Money-lending) Regulation Act.
On Friday, JP Morgan cut its share price target for SKS by more than half from Rs 550 to Rs 200.
Stating that 75 per cent of AP book of SKS (Rs 1,098 crore) could turn ‘bad' in FY12, JP Morgan also opined that the credit charges for the non-AP portfolio could inch up.
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