Satin Creditcare has a smooth run

Satin Creditcare Network. This stock was seldom heard about on the streets but off late, it has become a favorite of quite a few. Today, the stock clocked volumes of some 1.5 lakh shares compared to two-week average of 12,000 shares. The stock price intra day rose over 19% at Rs.449.

The stock is up today as Morgan Stanley has went ahead put quite a lot of faith in the company – it has picked up a 2.6% stake or purchased 8.30 lakh shares in the company at Rs.375/share. This was done through a block deal on the NSE.

Data on the NSE reveals that Shorecap II sold 10 lakh shares at Rs.376.25/share while Rajsonia Consultancy sold 1.54 lakh shares at Rs.377.05/share.

Satin Creditcare is a microfinance company that lends mostly in the northern parts of the country, in fact it is the largest in North India and fifth largest in India. It is among the few microfinance companies in India pushing for cashless transactions, after a pilot in Uttar Pradesh.

It ended Fy16 with a 83% jump in net profit at Rs.58 crore. Asset quality is good – Gross NPA for FY16 was at 0.19% v/s 0.02% and Net NPA was at 0.09% v/s 0.01%. For FY17, the company has given a guidance of Rs.100 crore net profit, which is a 72% growth over Fy16 bottomline.