Magma Fincorp Ltd- Q3FY11 Result Update

Online, January 19, 2011 (Newswire.com) - Magma Fincorp Ltd (MFL) reported strong third quarter results inline with our estimates. Magma has a live customer base of over 2.35 lakh customers and has Assets Under Management (AUM) of INR 98.74 Bn. The company has 172 branches in 20 states and 1 union territory and employs about 4900 people.

Q3FY11 Result Highlights
• Magma Fincorp Ltd. (MFL) reported strong growth in Q3FY11 with PAT growing 87% YoY to INR 308 Mn.
• The proportion of disbursements in high-yield assets increased to 22% during Q3FY11 vs 13% recorded during FY10 and 18% in Q2FY11.
• The 9M FY11 NIMs has remained at 5.1%, same as FY10. The Capital Adequacy Ratio (CAR) for the company was comfortable at 19.2% at the end of Dec'2010.

Outlook & Valuation
At CMP stock is trades at 1.4x its FY12E Book Value, Based on strong core performance we have BUY rating on the stock for a target price of INR 101.

For Demat Account Opening please visit www.unicondirect.com