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For the quarter ended March 2013, SKS posted a 11% year-on-year rise in income at Rs.95.09 crore as against Rs.85.05 crore in the December quarter. Net profit doubled to Rs.2.70 crore as against Rs.1.15 crore posted in the sequential quarter. For the full year ended March 2013, the company’s income fell to Rs.332.2 crore from Rs.435.7 crore in the previous year. It, however, booked a lower loss of about Rs.297.14 crore as against Rs.1,360.59 crore in the previous year, which is thing to be appreciated.
It is pertinent to mention here that, the company slipped into significant losses after Andhra Pradesh, a key market for microfinance institutions (MFIs), promulgated a law to discipline the micro-lenders that were indulging in coercive recovery practices. SKS’s operations in the state, which accounted for about a third of the total portfolio, had come to a grinding halt, forcing the company to look for other markets. “Now, the impact of the Andhra Pradesh MFI Act is behind us. We are gearing up for growth and our strategy to turn around the operations has worked,” Raj said.
Conclusion: Looking at the above factors and considering the turnaround of the company's business, the investors can take a bet on the scrip at the CMP of Rs.124 for a target of Rs.141-142, with the next 3-4 weeks.