52-WEEK FLOP: MONEY MATTERS FINANCIAL SERVICES: Business Line

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Scam-hit Money Matters Financial Services (Money Matters), a non-banking finance company lost 51 per cent in a year placing it amongst the top under-performers in the market. However, the one-year return doesn't quite capture the roller coaster ride the stock actually had over the last one year.

After rising by as much as 257 per cent till the day before the alleged bribe-for-loan scam made the headlines in November 2010, the stock rapidly lost a hefty 85 per cent of its value to this date.

Research Views-- Emkay; 15 Nov, 2010

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n        Research Views

ABG Shipyard Q2FY11E Result Estimates

Expect strong operational performance by ABG Shipyard in Q2FY11E on the back of a healthy order backlog.

n    Robust revenue growth at 38% YoY to Rs4.9 bn.

n    EBITDA margins to improve by 270 bps YoY aided by lower input costs. Consequently, expect EBITDA growth to be strong at 59% YoY to Rs1.0 bn.

Money Matters Financial Services-Diversification to help quintuple profits: Emkay

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Money Matters Financial Services

Diversification to help quintuple profits

NOT RATED

CMP: Rs685                                        Target Price: NA

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n     Established in 1997, Money Matters (MMFS) is amongst India’s leading provider of loan/debt syndication services

n     MMFS is planning to deploy the strong cash flows of loan/debt syndication business in financing business

n     The leads generated through loan/debt syndication business alongwith recently raised Rs4.5bn of equity should help MMFS to sustain future RoEs at 30%

n     The stock is currently trading at 17.1x/10.0x FY11E/FY12E earnings. P/BV at 2.8x/2.2x with RoEs of 25% over FY11E/FY12E. We find valuations attractive