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Magma Fincorp Ltd. Stock Analysis

Small Cap
Evaluated by 1356 users | BSE: 524000 | NSE: MAGMA |
Finance - NBFC
Magma Fincorp Limited (formerly Magma Leasing Limited) was incorporated in 1988 and commenced its operations in 1989.To strengthen its business, the company merged with Arm Group Enterprises in 1992. In early 2007, to strengthen its services even more, Shrachi Infrastructure Finance Ltd....

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Magma Fincorp Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)8249751,5681,8472,0192,1101,9782,0642,2332,178
Y-o-Y Gr. Rt.-18.4%60.8%17.8%9.3%4.5%-6.3%4.4%8.2%-2.5%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
8.082.785.856.567.327.720.268.4910.22-0.37
Y-o-Y Gr. Rt.--65.6%110.4%12.1%11.6%5.5%-96.6%3165.4%20.4%-103.6%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
43.356.9561.7566.4372.6285.6685.976.2494.592.97
Y-o-Y Gr. Rt.-31.5%8.4%7.6%9.3%18%0.3%-11.3%24%-1.6%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)2.20.911.241.171.261.480.051.631.95-0.07
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Magma Fincorp Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income11.4%1.5%3.3%-2.5%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-171%-155.1%-212.5%-103.6%
Book Value per Share
8.9%5.1%2.7%-1.6%
Share Price -5.2% -15.6% -39.3% -28%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0000000000
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)18.221.216.816.6000000
Margins
Net Profit Margin (%) 13.896.487.837.347.388.870.319.7512.32-0.46
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 25.187.710.911.1311.2710.970.310.4712.64-0.4
Entity Percentage Holding
Promoters 24.40%
Institutions 58.72%
Non-Institutions 16.89%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Magma Fincorp Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Magma Fincorp Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Magma Fincorp Ltd.'s performance infers:

Magma Fincorp Ltd. earnings have declined by -155.1%, whereas share price has depreciated -15.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Magma Fincorp Ltd. share prices over the last 10 years. Here is what we found out:

Magma Fincorp Ltd. share price has depreciated -6.4% annually over the past ten years.

Magma Fincorp Limited (formerly Magma Leasing Limited) was incorporated in 1988 and commenced its operations in 1989.

To strengthen its business, the company merged with Arm Group Enterprises in 1992. In early 2007, to strengthen its services even more, Shrachi Infrastructure Finance Ltd. (SIFL), a non-banking retail financing company, was merged with Magma to create a new financial services powerhouse: Magma Shrachi Finance Limited. On August 2008, it was renamed as Magma Fincorp.

It

Magma Fincorp Limited (formerly Magma Leasing Limited) was incorporated in 1988 and commenced its operations in 1989.

To strengthen its business, the company merged with Arm Group Enterprises in 1992. In early 2007, to strengthen its services even more, Shrachi Infrastructure Finance Ltd. (SIFL), a non-banking retail financing company, was merged with Magma to create a new financial services powerhouse: Magma Shrachi Finance Limited. On August 2008, it was renamed as Magma Fincorp.

It is headquartered in Kolkata (India), and registered with the Reserve Bank of India and is represented by a qualified team of over 4500 Magmaites. In response to the rapidly evolving demand of an India on the move, they offer individual and corporate customers a range of financial products and services in: commercial vehicle finance, construction equipment finance, passenger car finance.

Interestingly, they rapid growth over the last few years is not just derived from company conscious initiative in growing company physical infrastructure; it originates in the prudent investments that they have made in lasting relationships - with team members, alliance partners, customers and vendors As a result, they have achieved a compounded annual growth rate of over 70 per cent over the last three years. They have outperformed the growth in the Indian financing industry. And in doing so, the company has emerged as a dynamic industry proxy Now by the same approach, they expect to make this growth as sure as company expect to make it sustainable. Resulting in an organization that is stronger and more responsive to growing needs of a dynamic nation.

Today, it offers its services in 21 states through 154 offices. Each branch caters to an area of 40 km radius - down from 125 km just a year ago - translating into a wider reach and better penetration.

Services offered by the company:

In response to rapidly evolving demand, it offers individual and corporate customers a range of financial products and services in:

  • Commercial Vehicle Finance
  • Construction Equipment Finance
  • Car and Utility Vehicle Finance
  • Suvidha Loans (Refinance)
  • Strategic Construction Equipment Finance
  • SME Loans
  • Insurance

Important events

2011
Magma Fincorp gets R1 approval from IRDA to launch general insurance business
2012
Magma Fincorp acquires GE Capital India's Housing Finance & Home Equity Loans Businesses
2014
Magma launches Tyre Loan for Existing Customers

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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