BSE:524000

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Executive Summary

Magma Fincorp Limited, a non-banking financial company, provides asset finance services in India. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Magma Fincorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 524000's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.3%

524000

0.7%

IN Consumer Finance

1.4%

IN Market


1 Year Return

-20.9%

524000

-15.7%

IN Consumer Finance

2.2%

IN Market

Return vs Industry: 524000 underperformed the Indian Consumer Finance industry which returned -15.5% over the past year.

Return vs Market: 524000 underperformed the Indian Market which returned 2.8% over the past year.


Shareholder returns

524000IndustryMarket
7 Day25.3%0.7%1.4%
30 Day22.0%5.0%5.6%
90 Day61.2%4.0%8.5%
1 Year-20.9%-20.9%-11.9%-15.7%4.0%2.2%
3 Year-76.1%-76.5%30.5%19.0%-0.5%-5.3%
5 Year-52.6%-53.9%170.8%139.8%41.6%31.1%

Price Volatility Vs. Market

How volatile is Magma Fincorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Magma Fincorp undervalued compared to its fair value and its price relative to the market?

20.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 524000 (₹41.35) is trading above our estimate of fair value (₹3.29)

Significantly Below Fair Value: 524000 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 524000 is poor value based on its PE Ratio (20.7x) compared to the IN Consumer Finance industry average (11.4x).

PE vs Market: 524000 is poor value based on its PE Ratio (20.7x) compared to the Indian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: 524000 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 524000 is good value based on its PB Ratio (0.4x) compared to the IN Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Magma Fincorp forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

59.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 524000's forecast earnings growth (59.8% per year) is above the savings rate (7.2%).

Earnings vs Market: 524000's earnings (59.8% per year) are forecast to grow faster than the Indian market (25.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 524000's revenue (24% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 524000's revenue (24% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 524000's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Magma Fincorp performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 524000 has high quality earnings.

Growing Profit Margin: 524000's current net profit margins (4.4%) are lower than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: 524000's earnings have declined by 1.1% per year over the past 5 years.

Accelerating Growth: 524000's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 524000 had negative earnings growth (-78%) over the past year, making it difficult to compare to the Consumer Finance industry average (-8%).


Return on Equity

High ROE: 524000's Return on Equity (2%) is considered low.


Next Steps

Financial Health

How is Magma Fincorp's financial position?


Financial Position Analysis

Short Term Liabilities: 524000's short term assets (₹147.1B) exceed its short term liabilities (₹63.7B).

Long Term Liabilities: 524000's short term assets (₹147.1B) exceed its long term liabilities (₹61.3B).


Debt to Equity History and Analysis

Debt Level: 524000's debt to equity ratio (436.2%) is considered high.

Reducing Debt: 524000's debt to equity ratio has reduced from 634.9% to 436.2% over the past 5 years.

Debt Coverage: 524000's debt is not well covered by operating cash flow (8.3%).

Interest Coverage: Insufficient data to determine if 524000's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Magma Fincorp current dividend yield, its reliability and sustainability?

1.57%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 524000's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 524000's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 524000's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 524000's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 524000 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 524000's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Sanjay Chamria (56 yo)

13.5yrs

Tenure

₹22,440,000

Compensation

Mr. Sanjay Chamria serves as Non-Executive Chairman at Magma Housing Finance Ltd. Mr. Chamria is a Promoter of Magma FinCorp. Limited (also known as Magma Leasing Limited) and has been its Managing Directo ...


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD303.97K) is about average for companies of similar size in the Indian market ($USD316.55K).

Compensation vs Earnings: Sanjay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sanjay Chamria
Vice Chairman & MD13.5yrs₹22.44mno data
Kamal Kailash Baheti
President & Group CFOno data₹21.32m0.019%
₹ 2.1m
Mayank Poddar
Chairman Emeritus & Whole time Director4.17yrs₹16.84m0.18%
₹ 19.9m
Shabnum Zaman
Compliance Officer & Company Secretary5.17yrs₹2.76mno data
Rajneesh Mishra
Chief People Officer & BR Head1.75yrs₹11.19mno data
Mahender Bagrodia
Chief Credit Officer of Asset Backed Financeno data₹15.44mno data
Raj Kapoor
Chief Internal Auditorno data₹9.67mno data
Sanjiv Jha
National Business Head of Asset Backed Financeno data₹10.76mno data
Harshvardhan Chamria
Chief Digital Officerno data₹11.81mno data
Deepak Patkar
Chief Executive Officer of Asset Based Finance Business2.75yrs₹16.70mno data
Srinivas Panda
Chief Strategy Officer of Asset Backed Financeno data₹13.06mno data
Sailesh Mohta
National Risk Headno data₹3.16mno data

4.0yrs

Average Tenure

50yo

Average Age

Experienced Management: 524000's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjay Chamria
Vice Chairman & MD13.5yrs₹22.44mno data
Mayank Poddar
Chairman Emeritus & Whole time Director4.17yrs₹16.84m0.18%
₹ 19.9m
Vijayalakshmi Iyer
Non-Executive Independent Director1.75yrs₹1.90mno data
Vegulaparanan Viswanathan
Non Executive Independent Director4.17yrs₹1.80m0.00053%
₹ 59.0k
Bontha Rao
Additional Independent Non-Executive Director0.83yrno datano data
Sunil Chandiramani
Additional Independent Non-Executive Director0.83yr₹330.00kno data

3.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 524000's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Magma Fincorp Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Magma Fincorp Limited
  • Ticker: 524000
  • Exchange: BSE
  • Founded: 1978
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹11.131b
  • Shares outstanding: 269.52m
  • Website: https://www.magma.co.in

Number of Employees


Location

  • Magma Fincorp Limited
  • 501, Rustomjee Aspree
  • 5th Floor, IMAX Dome Theatre Road
  • Mumbai
  • Maharashtra
  • 400022
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524000BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2004
MAGMANSEI (National Stock Exchange of India)YesEquity SharesININRApr 2004

Biography

Magma Fincorp Limited, a non-banking financial company, provides asset finance services in India. The company offers loans for cars, SMEs, construction equipment, commercial vehicles, tractors, and used ve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 12:34
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.