Magma Fincorp shares hit upper circuit of 10 per cent in intra-day trade on Wednesday, hitting fresh 52-week high of Rs 84.95 on Bombay Stock Exchange. Magma Fincorp's stock price has gained 45.55 per cent over the last three sessions following December quarter results. The Mumbai-based non-banking financial company (NBFC) saw its shares rise 568 per cent over the last 9 months from its 52-week low of Rs 12.70, touched on May 28, 2020.
On Wednesday, Magma Fincorp share opened higher at Rs 83.50 against previous closing price of Rs 77.25. Extending early gains, the stock gained as much as 10 per cent to settle day's trade at Rs 884.95 apiece on the BSE in an otherwise weak market. The BSE benchmark Sensex ended 19.69 per cent or 0.04 per cent lower at 51,309.
The market cap of Magma Fincorp surged to Rs 2,290.18 crore.
On the volume front, there was surge in buying as 3.93 lakh shares changed hands over the counter as compared to two-week average volume of 2.72 lakh shares.
Brokerage firm ICICI Securities has assigned 'buy' call on Magma Fincorp with a target price of Rs 95 following December quarter results.
For October-December quarter of 2020, the Mumbai-based NBFC reported 41.98 per cent decline in net profit at Rs 12.99 crore as against Rs 22.39 crore during the same period last year. Sales declined by 3.24 per cent to Rs 589.33 crore compared to Rs 609.06 crore during the previous quarter ended December 2019. Magma Fincorp's loan disbursements grew by 45 per cent YoY on the back of rise in used assets and affordable housing segments.
The company has also announced it will raise up to Rs 3,000 crore through debt in the next fiscal year. The board of directors, at its meeting held on February 6, approved issuance of debt securities in the nature of non-convertible debt securities for the financial year 2021-22 for an amount up to Rs 3,000 crore, it said in a regulatory filing. The company said it will decide the coupon rate on the bonds through its management committee of the board of directors.
Incorporated in 1978, Magma Fincorp is a small-cap company that operates through more than 295 branches in 22 states and a union territory and has a strong presence in rural and semi-rural India.