The leading Kolkata-based NBFC, Magma Fincorp Limited, has planned to expand its operations in South India. The company is targeting 20% growth in Kerala in FY16-17. It will focus on housing finance and Suvidha (used vehicle loans) to achieve the numbers.
Dhrubashish Bhattacharya, the Vice President of Magma Fincorp Limited is of the view that the company is already a major player in retail finance and has strong customer relationship in the state.
The renewed focus on the rural and semi- rural markets will prove to be handy for the company and the focus on tractor finance will remain the same. For the last few months, they have been able to maintain a strong team to deliver the numbers in tractor and affordable housing and expect to grow at over 20% in each of the products.
Magma registered Rs 168 crore disbursements in Kerala in the second quarter of FY17. As of now, the company has 12 branches all over the state and two more branches would be opened soon.
Achievements
Recently, Magma Fincorp Ltd bagged the second prize in the CSR Best Practices category at the National HRD Network's Annual HR & CSR Competition 2016.
The other players nominated in the category included top performers like L&T Infotech, UB Group, BOSCH Ltd, and MindTree Consulting, Brillo Technologies, Bharti Foundation, Himalaya Drug Company.
This recognition highlights the company’s effort towards building a better environment and society through CSR initiatives. For the last six months, this is the 5th CSR award that they’ve won. This recognition will definitely inspire the company and it will continue to take small but purposeful initiatives to reach out and touch the lives of various sections of the society.
This recognition highlights the company’s effort towards building a better environment and society through CSR initiatives. For the last six months, this is the 5th CSR award that they’ve won. This recognition will definitely inspire the company and it will continue to take small but purposeful initiatives to reach out and touch the lives of various sections of the society.
The other awards that Magma Fincorp has won for excellence in CSR in the last 6 months include.
- CSR Project of the Year (2015-16) at the 3rd CSR Impact Awards 2016 organised by NGO BOX and NEXTGEN.
CSR Leadership Award at National CSR Leadership Congress & Awards 2016. - Corporate & Business Communication at National CSR Leadership Congress & Awards 2016.
- Corporate Responsibility Award 2016 by Investor Review magazine, UK.
Q2 Glimpses
Magma Fincorp registered a 17% fall in its second quarter net profit at Rs 39.04 crore on the back of shrinking revenue amid sluggish economic activities. Revenue or income from business fell to Rs 504.79 crore from Rs 526.13 crore.
It expects to grow disbursal in the second half of the financial year and start building the asset under management again, with normal monsoons, rise in minimum support prices of agricultural commodities.
It feels that the tractors financing, used assets, mortgage and small & medium enterprises segments now contribute 67% of total disbursal and 60% of total loan book.
Stock fundamentals
Intraday on 23rd Dec, Magma Fincorp share price dipped 5% at Rs. 99.80. The stock opened at Rs. 102.65 and touched the day’s high and low at Rs. 104.00 and Rs. 98.80 respectively.
Magma Fincoro is a multibagger stock for this quarter as identified by Dynamic Levels.
Magma Fincoro is a multibagger stock for this quarter as identified by Dynamic Levels.
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