Magma Fincorp surges on plans of expanding FY14 loan book

Poonawalla Fincorp Ltd. | Finance - NBFC | BFSI | BSE: 524000 | NSE: POONAWALLA

10 May 2013 Evaluate

Magma Fincorp is currently trading at Rs 96.75, up by 1.60 points or 1.68% from its previous closing of Rs 95.15 on the BSE.

The scrip opened at Rs 95.70 and has touched a high and low of Rs 98.65 and Rs 94.60 respectively. So far 20554 shares were traded on the counter.

The BSE group 'B' stock of face value Rs 2 has touched a 52 week high of Rs 110.40 on 10-Jan-2013 and a 52 week low of Rs 54.25 on 17-May-2012.

Last one week high and low of the scrip stood at Rs 99.75 and Rs 87.45 respectively. The current market cap of the company is Rs 1837.83 crore.

The promoters holding in the company stood at 33.66% while Institutions and Non-Institutions held 56.04% and 10.31% respectively.

Magma Fincorp, non-banking finance company aims to expand its loan book by around 30% in the ongoing financial year and improve its net interest margin (NIM). The company expects that its general insurance business to breakeven by FY15, which will be third year of its operation. The company hopes to get 20-25% of its loan book from its recently acquired housing finance business from GE Money, in next 3-4 years.

The entity has reported a net profit of Rs 144.9 crore in FY'13 with average assets under management of Rs 18,378 crore by the end of this period. It had reported a NIM of 4.91% in the last fiscal compared to 3.40% a year earlier.