Showing posts with label Financial Analysis. Show all posts
Showing posts with label Financial Analysis. Show all posts

Tuesday, June 19, 2018

Company Analysis of Banks, Finances, Insurances, Microfinances !


Check the LINK below for details on Analysis of Companies Listed in NEPSE:
(नेप्सेमा सूचिकृत २८ वटै बाणिज्य बैंकहरुको वित्तिय विश्लेषण तथ्यांकको लागि निम्न लिंक्समा क्लिक गर्नुस् !)


Thursday, June 14, 2018

How Lucrative is FPO of NMB Bank? How much to Apply?



The FPO issuance of NMB Bank has started from today. The bank is issuing 1,14,15,163 unit shares at a price of Rs 333. The bank has endorsed the public offering to meet its capital requirement of Rs 8 arba. After issuing the Further Public Offering, the share capital of the bank will stand at Rs 7.60 arba. To fulfill the minimum capital requirements of Rs 8 arba, NMB will need to issue only about 6% bonus shares. Along with the fulfillment of capital requirement, the company’s share structure will be converted to 51:49. The current capital structure of the bank is around 60:40.



Just like in previous FPOs, this issue has also gathered much interest from the investors. But in the recent period, the investors have started to become wary as the issue price is very close to the current market price. The recent FPO issuance of Butwal Power Company and Pokhara Finance can be considered as examples.

The main issue creating dilemma among the investors on whether to apply for the FPO is its price of Rs 333, as the current trading price of the stock is Rs 368. There is not much room for capital gain should the market continue its recent downward trend. The calculation of the FPO price based on the SEBON’s guidelines was determined to be Rs 535. The bank had also proposed the FPO at Rs 422 earlier, but after certain market survey, it lowered the price to Rs 333.

Tuesday, April 3, 2018

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).


How Much Worth Now of Rs 1 Lakh Investment in NTC, NABIL & CHCL Stocks 5 Years Ago !


“The stock market is designed to transfer money from the active to the patient”
– Warren Buffett.


It is no secret that Warren Buffett, the self-made billionaire investor, has always valued investing over the long-term. His slow and steady approach has proved to be successful in building wealth—making him one of the richest people in the world with net worth of almost $85 billion (Rs 88 kharba). One of the most popular mantras of Buffet is giving more importance to long-term investment on growing companies, rather than trading and short-term investments. So what can we learn from the man whose personal net worth is 6 times more than NEPSE’s entire market capitalization of Rs 14.30 kharba?

Thursday, March 22, 2018

Top Blue Chip Commercial Banks - Best Buy by Rating Wise Analysis !


Nepal Stock Exchange (NEPSE) has been continuously tanking points for quite some time. In such bearish trend, there are some analyst asserting it to be the prime time to invest in the secondary market, while some feel their cash safe at bank. Whatever the speculation, there are still some scrips who are in better position than the other.



Out of 28 listed commercial banks, scripts of 26 banks are tradable. The shares of Rastriya Banijya Bank (RBB) isn’t traded and the shares of Mega Bank is on hold since last one year because of the ongoing merger. Similarly even among the 26, only 6 banks’ prices are above Rs. 500. To list them down in descending order of market price per share (LTP on Chaitra 8, 2074) are Nabil Bank Limited (NABIL), Standard Chartered Bank Limited (SCB), Everest Bank Limited (EBL), Nepal Investment Bank Limited (NIB), Himalayan Bank Limited (HBL) and Nepal SBI Bank Limited (SBI).





Saturday, March 17, 2018

Commercial Banks Prospective Earning per Share (EPS) After Paid Up Capitalization !


The current banking industry’s scenario is no different from a battlefield. While one side of the warriors is focused to retain their weapons (customers), the other side is trying to build a competitive advantage utilizing the opponent’s weakness (lower deposit rate). The general public has seen the current context of banking industry as a fight for survival. However, seeing things from different perspective, it actually resembles that all commercial banks will finally come to the same level given the similar range of paid up capital. The dominant market players in banking industry will be identified in the near future on the basis of net profit, deposit collection and loan portfolio.


The investors in secondary market are inquisitive on “which commercial banks will lead in the secondary market?” The precise answer to the stated question might not be pictured by all the investors instantly because nine of the commercial banks are yet to meet the paid up capital requirement. However, these nine commercial banks have already provided clues regarding their capital plan. Those banks that were sort of paid up capital have either used merger and acquisition approach or have utilized reserve fund to meet the paid up capital requirement. With the approaching deadline, banks are left with the alternatives of bonus share and right share to set the mark of Rs 8 arba in the first row of their balance sheets.




Monday, October 23, 2017

First Microfinance Again First to Publish First Quarterly Report of FY 2074/075; Earnings Surge by 60.44% to Rs. 24.13 Million !

First Microfinance Development Bank Ltd. (FMDBL) is again the first among the publishing companies to publish its provisional financial statement from the (Q1) of the fiscal year (FY) 2074/075, with an impressive profit growth of 60.44%.


According to the unaudited financial report for Q1 published yesterday, the microfinance has stated that its net profit surged to Rs. 24.13 million in Q1 as compared to Rs. 15 million in the corresponding Q1 of the last FY 2073/074.

The borrowing of the microfinance has increased from Rs 32.2 billion in the corresponding Q1 of the previous year to Rs. 35.2 billion in the Q1 of the current FY 2074/075.

Its net interest income has also increased to Rs. 40.8 million in the Q1 up from Rs. 26.5 million compared to the corresponding Q1 of the last fiscal year. The microfinance company has an operating profit of Rs. 37.9 million in Q1 of the ongoing FY.

The paid up capital of the company stands at Rs. 456.2 million in Q1 of FY 2074/075. Its reserve and surplus surges to Rs. 96 million in Q1 from Rs. 56.9 million in the corresponding Q1 of last FY.

Read more: First Microfinance Again First to Publish First Quarterly Report of FY 2074/075 !