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Poonawalla Fincorp Ltd logo

Poonawalla Fincorp Ltd

NSE: POONAWALLA BSE: 524000

₹396.30

(0.95%)

Wed, 27 May 2026, 06:00 pm

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Poonawalla Fincorp Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (6.9x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (16.7x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Magma Fincorp's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Magma Fincorp's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

    future

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    Pros

    • Magma Fincorp's earnings are expected to grow significantly at over 20% yearly.
    • Magma Fincorp's earnings growth is expected to exceed the India market average.
    • Magma Fincorp's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Magma Fincorp's earnings are expected to exceed the low risk growth rate next year.
    • Magma Fincorp's net income is expected to increase by more than 50% in 2 years time.
    • Performance (ROE) is expected to be above the current IN Consumer Finance industry average.
    • An improvement in Magma Fincorp's performance (ROE) is expected over the next 3 years.
    • Magma Fincorp's revenue growth is expected to exceed the India market average.
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    Cons

    • Magma Fincorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Magma Fincorp's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Magma Fincorp's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • Magma Fincorp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Magma Fincorp is profitable, therefore cash runway is not a concern.
    • Magma Fincorp is profitable, therefore cash runway is not a concern.
    • Debt is covered by short term assets, assets are 1.2x debt.
    • Magma Fincorp's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (555.8% vs 452.1% today).
    • Low level of unsold assets.
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    Cons

    • Debt is not well covered by operating cash flow (1.9%, less than 20% of total debt).
    • Magma Fincorp's level of debt (452.1%) compared to net worth is high (greater than 40%).

    management

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    Pros

    • The tenure for the Magma Fincorp board of directors is about average.
    • Sanjay's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the Magma Fincorp management team is about average.
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    Cons

    • Sanjay's remuneration is higher than average for companies of similar size in India.

    misc

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    Pros

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      Cons

      • Magma Fincorp has significant price volatility in the past 3 months.

      past

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      Pros

      • Magma Fincorp's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
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      Cons

      • Magma Fincorp's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Magma Fincorp used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.
      • Magma Fincorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Magma Fincorp's 1-year earnings growth is negative, it can't be compared to the IN Consumer Finance industry average.

      value

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      Pros

      • Magma Fincorp is good value based on assets compared to the IN Consumer Finance industry average.
      • Magma Fincorp is good value based on expected growth next year.
      • Magma Fincorp is good value based on earnings compared to the IN Consumer Finance industry average.
      • Magma Fincorp is good value based on earnings compared to the India market.
      • NSEI:MAGMA is up 35.7% outperforming the Consumer Finance industry which returned 10.3% over the past month.
      • NSEI:MAGMA is up 35.7% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Magma Fincorp's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Magma Fincorp's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • MAGMA underperformed the Consumer Finance industry which returned -28.8% over the past year.
      • MAGMA underperformed the Market in India which returned -14.5% over the past year.