Anand Rathi Share and Stock Brokers maintained 'Buy' on SKS Microfinance (SKS) with target price of Rs 743.

Commenting on the investment rationale, the stock broker said, ''SKS is witnessing the benefits of an improved funding environment. Healthy disbursement coupled with activation of inactive members across the country will pave way for asset under management growth at a compounded annual growth rate of ~46% between FY15-FY18e."

At the current market price of Rs.477, the stock trades at a price to book value ratio of 2.7x FY18e. At our target price, it would trade at a price to book value ratio of 4.15x FY18e (rolled over from FY17 to FY18). We have valued the core business at Rs 716 (price to book value ratio of 4x FY16e) and the deferred tax assets at Rs 27 a share.''

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