Mutual funds, FPIs, BFIs load up on shares of this NBFC, buy shares worth Rs 1,085 crore in Apr-June

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Updated: August 16, 2018 5:13 PM

Shares of Kolkata-based Magma Fincorp have emerged as a top favourite even as mutual funds, FPIs and BFIs have loaded up on the NBFC player’s stock.

Mutual funds too picked up huge chunks of Magma Fincorp shares in the latest quarter, adding Rs 451.2 crore worth of shares in the April-June period.

Shares of Kolkata-based Magma Fincorp have emerged as a top favourite even as mutual funds, FPIs (Foreign Portfolio Investors) and BFIs (Banking and Finance Institutions) have loaded up on the NBFC player’s stock, according to a report. Tracking the sequential changes in the latest quarter, a report by Kotak Institutional Equities noted that the shares of Magma Fincorp have registered the highest increase in stake. FPI’s added Rs 423.8 crore worth of stock in the quarter, implying a 7.3% rise from the end of March-2018. As at the end of June-18, FPIs hold 25.3% in the shares.

Mutual funds too picked up huge chunks of the shares in the latest quarter, adding Rs 451.2 crore worth of shares in the April-June period. The BFIs too increased their stake in the stock to 4.3% in the latest quarter. The BFIs added Rs 180.7 crore worth of stock in the latest quarter. The stake has increased to 4.2% in the latest quarter.

The meeting of the board of directors of the company is scheduled on 20th August to approve June quarterly results. In July this year, the company’s Vice Chairman and Managing Director Sanjay Chamria said that it expects disbursement growth of 25-30% for FY19. Speaking to CNBC-TV18, Chamria  noted that loan growth has been robust in Q1 of FY19 and disbursements has grown by 25% on year-on-year (YoY) basis.

Further, Chamria said that government spending on civil infrastructure leads to demand offtake in many other sectors. Magma Fincorp shares have corrected by more than 13% since January. In the last one year, the shares have fallen by more than 20%. Notably, the Nifty has returned 17% in the same period.

In the previous quarter, Magma Fincorp had reported a net profit of Rs 71 crore for the quarter ended March 31, 2018, riding on the back of higher disbursals and improved collection. Earlier, Magma Fincorp had posted a net loss of Rs 122 crore during the corresponding March-ended quarter. In the Jan-Mar-18 period,  disbursals grew by 51%, primarily driven by loans to used assets, commercial vehicles, construction equipment, SME and home loans. Tractor loans grew by a modest 29%.

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