JPMorgan cuts SKS Microfin profit, price targets

MUMBAI: JPMorgan cut its profit forecasts for leading microfinance lender SKS Microfinance by 25 to 35 percent for the next three financial years and lowered its price target on the stock to Rs 700 from Rs 1,000 amid ongoing turmoil in the industry.

"We believe that the headwinds for SKS and the MFI industry are still not over," JPMorgan analysts wrote in a noted dated Nov. 17.

At 1:10 PM, shares in SKS were down 19.7 percent at Rs 653 on Thursday after the company said a crackdown imposed by the Andhra Pradesh government on industry business practices threatened to squeeze profit.

Spandana, India's second largest micro-finance company is believed to have deferred its Rs 1500 crore IPO.