Magma Fincorp Ltd

CMP: 58


Magma Fincorp Limited provides a range of financial products and services to individual and corporate customers. The Company offers commercial vehicle financing, construction equipment financing and passenger car financing.

Magma Fincorp Limited is a good pick in small cap finance space. Its currently trading at a fair P/E of little less than 8. Decent dividend yielding stock. Its NPM peaked at 15% in FY08, took a dip in FY09 and has now recovered back to its peak in recent quarters which is very positive for the stock. Revenues have grown 5 fold in the last 5 years and is looking good hereon as well. Its currently trading at support levels and should not drop below 50. Buy, Accumulate on dips and hold for long term gains.