Recommend to avoid microfiance space: Daljeet Singh Kohli

In a chat with ET Now, Daljeet Singh Kohli, HoR, IndiaNivesh, shares his views on SKS Microfinance.

ET Now: A quick word on SKS Microfinance given the rally and the upbeat mood there is in the stock with the business also picking up are you recommending it to clients?

Daljeet Singh Kohli: No, we are not recommending from research. As a stock idea at one point of time much lower levels, we had recommended this stock but that was only for trading perspective.

On the fundamental terms, I do not like this business model of going into microfinance because mainly my concern is that these deals with very poor people and therefore there is always a very high risk of political intervention from various political parties.

So, I would rather avoid such a sector therefore I do not like this stock so we are not recommending this.