Magma FinCorp share price drops nearly 5 percent after ICRA revises outlook

Magma FinCorp share price drop in trade today after ICRA (ratings firm) revised the ratings of its term loans & non-convertible debenture programme from stable to negative. Share price of Magma FinCorp fell up to 4.82 percent to Rs 53.35 in comparison to the previous close of Rs 56.05 on the BSE.

Magma FinCorp share price drops nearly 5 percent after ICRA revises outlook
Magma FinCorp share price drops nearly 5 percent after ICRA revises outlook

Magma FinCorp share price drop in trade today after ICRA (ratings firm) revised the ratings of its term loans & non-convertible debenture programme from stable to negative. Share price of Magma FinCorp fell up to 4.82 percent to Rs 53.35 in comparison to the previous close of Rs 56.05 on the BSE. The small cap stock has fallen after 3 days of gain. Magma FinCorp share has lost 51.48 percent in the last one year & fallen 51.7 percent since the beginning of this year.

But, during the last one month, the stock has gained 30 percent. The non-banking finance company told that ICRA assigned negative to its term loans as well as non convertible debenture programme.

ICRA has also affirmed the ratings of Magma Housing Finance Limited. It has given negative rating to term loans & non convertible debenture programme of the company. Decline in the asset quality indicators after the reduced collection efficiencies in certain geographies & loan segments (commercial vehicles - CVs & construction equipment - CE) led to revision in the outlook on group, according to the firm.

High credit costs badly affected the profitability metrics of the group. Ratings firm expects the group's profitability to remain subdued in the medium term. In addition, ICRA expects the group to continue having relatively weaker asset quality indicators as compared to the peer set.