Magma Fincorp (MGMA IN) Q2FY18 earnings: Steady performance; Moving steadily on the guided path

** Net Op. Inc. -2% yoy (-2% qoq) at Rs3.03bn – in line with expectations

** Opex +8% yoy (-1% qoq) at Rs1.7bn

** Op. Profit -9% yoy (-3% qoq) at Rs1.5bn

** Provisions -21% yoy (-18% qoq) at Rs794mn – includes Rs79mn additional provision towards 90-dpd NPL recognition (Rs180mn for H1FY18)

** PAT -3% yoy (+8% qoq) to Rs488mn – 6% above estimates

Asset quality and AUM growth data awaited

At Rs167, the stock trades at 1.5x FY19E BV and 14x FY19E EPS. We currently have a ACCUMULATE rating with a target price of Rs200. We will review our estimates and rating post the conference call tomorrow at 11.00am. Dial-in: 91 22 3938 1073 / 3940 3977