Magma Fincorp Ltd., incorporated in the year 1978, is a Small Cap company (having a market cap of Rs 11453.78 Crore) operating in NBFC sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 587.14 Crore, down -1.46 % from last quarter Total Income of Rs 595.81 Crore and down -4.93 % from last year same quarter Total Income of Rs 617.62 Crore. Company reported net profit after tax of Rs -646.08 Crore in latest quarter.
Investment Rationale
The brokerage assign high probability of enhanced operating metrics and return profile in the medium term on the back of: 1) strong corporate group backing, 2) >68% CAR (post infusion), 3) improved credit rating outlook, and 4) business competitiveness. This niche franchise can command 2.0x post transaction book value, and it revises target price to Rs 173 (previously: Rs 125).
Promoter/FII Holdings
Promoters held 73.3 per cent stake in the company as of March 31, 2021, while FIIs held 8.8 per cent, DIIs 6.4 per cent and public and others 11.5 per cent.
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