Indian microfinance lenders have experienced significant declines in their share prices. CreditAccess Grameen and Satin Creditcare have dropped by around 50% from their recent peaks, while Spandana Sphoorty has seen a decline of 70% and Fusion Finance has plummeted by 75%. These declines have raised concerns about the stability of the sector, particularly in light of rising non-performing loans.

The cyclical nature of microfinance businesses is now being scrutinized, leading to questions about their investability and valuation methods. Vikram Akula's book, "Micro-Meltdown," provides insights into the impact of microloans on rural communities, showcasing the journey of a woman who transformed her subsistence farming into a sustainable enterprise through a modest loan.

As the microfinance landscape evolves, analysts and investors are being urged to reassess their strategies considering current market conditions and the potential for recovery in this critical sector.