Shares of Magma Fincorp gained 3.5 percent intraday Wednesday as IIFL initiated coverage on the stock with buy rating for a target at Rs 220 per share.
The firm believe that the companys business performance is at an inflexion point.
The larger part of business restructuring is complete, while the disbursements growth is gradually improving, which will lead to credit rating upgrade, it added.
The financial performance will improve with AUM growth and higher loan growth, margins would aid revenue growth.
The broking house expect disbursements, AUM and net profit to grow at a compounded rate of 26 percent, 17 percent and 28 percent respectively over the financial years through March 2021.
Also, return on assets and return o…
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