It is a global phenomenon, when any new sector emerges, it gets extremely high valuation, then too much money flows into it. Then soon comes a phase of realization that it has become too hot to handle and then correction takes place which might take years. Microfinance companies have gone through this cycle. More than a decade back, first listing of a micro finance company was a massive success though it is a different matter very soon it was embroiled in a controversy and finally taken over by a large private bank. Since then a number of finance companies have got listed and after a phase of out performance, they have been facing headwinds but then headwinds also don't remain for ever. Is the worst over for them and is it time to once again look at them ?
