Nepal Stock News: RBCL with 120% Bonus Proposal, Check out its Fundamental and Technical Analysis !

Rastriya Beema Company Limited (RBCL) soars in its net profit by 42.39% in the second quarter (Q2) of the ongoing fiscal year (FY) 2074/75. There is a net profit of Rs 372.5 millions (Rs 37.25 crores) in Q2 of the FY 2074/75, up from Rs 261.6 millions (Rs 26.16 crores) in the corresponding quarter (Q2) of the FY 2073/74.

While its income from net premium has also increased from Rs 106.2 millions (Rs 10.62 crores) to Rs 128.8 millions (Rs 12.88 crores) at the end of Q2 this year, its income from reinsurance commission has decreased to Rs 13.8 millions (Rs 1.38 crores).

It has Rs 1.98 billions (Rs 1.98 arbas) in reserve whereas insurance fund amounts to Rs 1.26 billions (Rs 1.26 arbas). Its paid up capital stands at Rs 266.6 millions (Rs 26.66 crores) as taken from NEPSE. Thus, RBCL must hike its capital by Rs 733.4 millions (Rs 73.34 crores) that is around 275% to meet the capital requirement of Rs 1 billion (Rs 1 arba).

Subsequently, the board meeting of the insurance company held on Thursday 22nd February 2018 (10th Falgun 2074) has recently proposed a whopping 120% bonus shares and 5.26% cash dividend for tax purpose to its shareholders from the net profit of 6 years, from FY 2063/64 to FY 2068/69. After the distribution of this 120% bonus share, the current paid up capital will hike to Rs 586.6 millions (Rs 58.66 crores).

In order to meet further the remaining capital requirement, it should again hike its capital by Rs 413.4 millions (Rs 41.34 crores) that is around 70% by distributing bonus shares or issuing FPO before FY 2075 as directed by the Insurance Board of Nepal.

For this, RBCL has already completed its audit from FY 2069/70 to FY 2071/72 too, and also plans to complete its audit of FY 2072/73 till the end of ongoing FY 2074/75 and will hold AGM accordingly after that.

Its current earning per share (EPS) stands at Rs 139.70 (annualized EPS = Rs 279.44), net worth per share (WPS) at Rs 843.11 and price to earning (P/E) ratio at 96.99 times.

Its last trading price (LTP) stood at Rs 8,810 as of last trading day, Tuesday 3rd April 2018 (20th Chaitra 2074).

RBCL is a government owned public limited company formed under decision of Government of Nepal as per the 2063 BS company act, separate general insurance business of Rastriya Beema Sansthan (RBS) by mobilizing internal resources of Nepal.

Before investing into this company share, check out the company's Fundamental and Technical Analysis as published in the national daily Arthik Abhiyan newspaper online yesterday.