The sector is undergoing significant stress due to macro as well as company-specific factors. Refer to RBI commentary in this regard – will help set context. Also, the preferred approach to look at lending businesses in general is Price-to-book and not Price-to-earnings, given the asset heavy nature and inherent cyclicality.
Refer to this recent article for the sector overview: Stress in MFI sector largely due to customer overleveraging
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