The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» Thread for News on CSE and SL Economy
Today at 9:25 am by nihal123

» Thread for News on Local and Foreign Politics
Today at 8:00 am by serene

» Thread for News on International Markets
Today at 7:56 am by The Invisible

» DIPD.N0000 (Dipped Products)
Today at 7:18 am by The Invisible

» SAMP.N0000 (SAMPATH BANK PLC)
Today at 7:16 am by The Invisible

» TAFL - Three Acre Farms
Today at 7:14 am by The Invisible

» RCL - Royal Ceramics
Today at 7:12 am by The Invisible

» HAYL.N0000 Hayleys PLC
Today at 7:08 am by The Invisible

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Yesterday at 11:21 pm by PANTOMATH

» Will YOU VOTE for ME if I run for SL PRESIDENCY?
Yesterday at 6:41 pm by Brave Heart

» Dividend Announcement
Yesterday at 6:01 pm by Ethical Trader

» How to trade Stock profitably?
Yesterday at 11:55 am by indramal

» What are investing methods in Sri Lanka?
Yesterday at 6:39 am by indramal

» අනං මනං! #/+?.<>
Mon Nov 12, 2018 7:57 pm by Yin-Yang

» Thread for General News Local/Foreign
Mon Nov 12, 2018 7:57 am by serene

» Anybody invest New York or Landon Stock Exchange?
Sat Nov 10, 2018 8:53 am by කිත්සිරි ද සිල්වා

» JKH.N0000
Fri Nov 09, 2018 10:49 am by ruwan326

» HAYC - Haycarb
Fri Nov 09, 2018 10:30 am by The Invisible

» WATA - Watawala
Fri Nov 09, 2018 10:22 am by The Invisible

» AAIC.N0000
Fri Nov 09, 2018 10:10 am by The Invisible

» Asian markets rally as investors see positive in US gridlock
Fri Nov 09, 2018 8:02 am by serene

» CSE RISE , RIDING ETHICALLY
Wed Nov 07, 2018 5:53 am by pjrngroup

» Constitutional Crisis – close to $ 100mn flees stock/bond markets last week
Tue Nov 06, 2018 6:38 pm by serene

» HHL.N0000 ( Hemas Holdings PLC)
Tue Nov 06, 2018 8:43 am by The Invisible

» Weldone Serene for 4000 + posts
Tue Nov 06, 2018 7:44 am by serene

» Real Estate Market in Sri Lanka- A booming Industry or a Bubble?
Tue Nov 06, 2018 7:36 am by serene

» Asiri Hospitals PLC - ASIR
Mon Nov 05, 2018 11:58 am by The Invisible

» Flying is the Safest mode of Transport
Sat Nov 03, 2018 8:44 am by කිත්සිරි ද සිල්වා

» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
Fri Nov 02, 2018 7:45 pm by Brave Heart

» What MOTTOs/PRINCIPLEs do YOU follow in LIFE ?
Thu Nov 01, 2018 4:14 pm by Seyon

» LDEV - Lankem Developments
Thu Nov 01, 2018 2:23 pm by The Invisible

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Thu Nov 01, 2018 12:43 pm by The Invisible

» MTD Walkers (KAPI)
Thu Nov 01, 2018 11:54 am by The Invisible

» SERV - The Kingsbury
Thu Nov 01, 2018 10:12 am by The Invisible

» LFIN - LB Finance
Thu Nov 01, 2018 10:03 am by The Invisible

» PABC.N0000 (Pan Asia Banking Corporation PLC)
Thu Nov 01, 2018 9:56 am by The Invisible

» Sri Lanka jumps 11 places to 100th rank in World Bank’s Doing Business index
Thu Nov 01, 2018 9:52 am by The Invisible

» Banking Sector
Thu Nov 01, 2018 9:50 am by The Invisible

» All Share index crosses 6,000 points
Thu Nov 01, 2018 8:20 am by Brave Heart

» Asian Hotels and Properties September net down 48-pct
Thu Nov 01, 2018 8:17 am by Brave Heart

» Sri Lanka rupee weakens; stocks rally slows
Thu Nov 01, 2018 8:13 am by Brave Heart

» TJL.N0000 (Textured Jersey Lanka PLC.)
Wed Oct 31, 2018 7:27 pm by PANTOMATH

» Whats ailing Sri Lanka ? Why we are what we are!
Wed Oct 31, 2018 6:07 pm by Ethical Trader

» Sri Lankan rivals tempt defectors to swing crisis
Wed Oct 31, 2018 9:41 am by The Invisible

» Sri Lanka’s Piramal Glass in Sept quarter loss as costs rise
Wed Oct 31, 2018 9:36 am by The Invisible

» Sri Lanka President could dissolve parliament if interim budget is defeated: Wijedasa
Wed Oct 31, 2018 9:34 am by The Invisible

» Sri Lanka political crisis hikes debt rollover risk: Fitch
Wed Oct 31, 2018 9:31 am by The Invisible

» Sri Lankan political standoff could threaten reforms: S&P Ratings
Wed Oct 31, 2018 9:29 am by The Invisible

» Giant pro-democracy rally in Sri Lanka capital
Wed Oct 31, 2018 9:27 am by The Invisible

» Postponing reforms will make Sri Lanka lag behind peers, central bank warns
Wed Oct 31, 2018 9:22 am by The Invisible

November 2018
SunMonTueWedThuFriSat
    123
45678910
11121314151617
18192021222324
252627282930 

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Finance companies snapshot

Page 1 of 3 1, 2, 3  Next

Go down

Finance companies snapshot

Post by First Guy on Wed Jun 17, 2015 9:34 pm

From the below thread, I see that some of us have a lot of finance companies in our portfolios.
[You must be registered and logged in to see this link.]

This is a simple snapshot of selected 10 stocks.

[You must be registered and logged in to see this image.]

Data is on TTM basis while ROE is calculated on the period end number. So do your own calculations before making any decision.
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Wed Jun 17, 2015 9:41 pm

From the above,
COCR is trading at a very high P/B multiple due to it's high earnings.
ALLI trading at a low P/B but earnings quality is questionable.

We can add more comparable data to find out reasons for these differences. (In future)
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by කිත්සිරි ද සිල්වා on Wed Jun 17, 2015 9:48 pm

Thanks FG. Very Happy
(We are listening).
avatar
කිත්සිරි ද සිල්වා
Top contributor
Top contributor

Posts : 7485
Join date : 2014-02-23
Age : 60
Location : රජ්ගම

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Fri Jun 19, 2015 10:44 pm

What other data should we compare when it comes to finance companies? I have compared one item which might make sense to me. But I'll hold it for now till I get some suggestions Smile
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by Backstage on Sat Jun 20, 2015 7:45 pm

The "Fins" are the favorites for the upcoming quarters. Would love to see more knowledgeable observations here.
I am keen to know the signals of when to exit/reduce exposure to the sector.
avatar
Backstage
Top contributor
Top contributor

Posts : 3312
Join date : 2014-02-24

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Sat Jun 20, 2015 8:43 pm

Backstage wrote:The "Fins" are the favorites for the upcoming quarters. Would love to see more knowledgeable observations here.
I am keen to know the signals of when to exit/reduce exposure to the sector.

One comparison I made was the Loan to "Deposit + Borrowing" ratio and found something interesting.

As for entry/exit, at this stage, it would depend on any key decisions taken at higher level for me.
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by Backstage on Sat Jun 20, 2015 8:51 pm

First Guy wrote:
Backstage wrote:The "Fins" are the favorites for the upcoming quarters. Would love to see more knowledgeable observations here.
I am keen to know the signals of when to exit/reduce exposure to the sector.

One comparison I made was the Loan to "Deposit + Borrowing" ratio and found something interesting.

As for entry/exit, at this stage, it would depend on any key decisions taken at higher level for me.

Upward movement in interest rates being an obvious one.
avatar
Backstage
Top contributor
Top contributor

Posts : 3312
Join date : 2014-02-24

Back to top Go down

Re: Finance companies snapshot

Post by serene on Sun Jun 21, 2015 8:49 am

First Guy wrote:
Backstage wrote:The "Fins" are the favorites for the upcoming quarters. Would love to see more knowledgeable observations here.
I am keen to know the signals of when to exit/reduce exposure to the sector.

One comparison I made was the Loan to "Deposit + Borrowing" ratio and found something interesting.

As for entry/exit, at this stage, it would depend on any key decisions taken at higher level for me.

1st G good bench mark too start with but should account following factors as well.
Some finance companies with proven records have credit lines with low interest rates in the pipeline with the major banks.
So especially last year or so where inerest rate decline from 20's 10's its wiser to think that they might discourage fixed deposits to bank borrowings.
Anyway Savings underpins the real competitive edge over FDs and bank borrowings which we wont be able to compare through the reports available in cse.

Also another important factor we can use to compare the these companies is their delinquency ratio.
As we must understand the fact that it's easy to lend but real challenge lies on recoveries.
So the better trend in impairment is pivotal factor in success of finace companies.

serene
Top contributor
Top contributor

Posts : 4059
Join date : 2014-02-26

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Sun Jun 21, 2015 9:04 am

Thanks serene.

Yes I have noticed one large company has quite a lot of bank borrowings than deposits and doing well Wink

Yes, factors such as NPL are vital but are only available in the AR most of the time. For the moment, I'm collecting some data from the financial statements.

avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by serene on Sun Jun 21, 2015 9:14 am

First Guy wrote:Thanks serene.

Yes I have noticed one large company has quite a lot of bank borrowings than deposits and doing well Wink

Yes, factors such as NPL are vital but are only available in the AR most of the time. For the moment, I'm collecting some data from the financial statements.


1st G if my memory serves right you can find Impairment in quarterly reports in P&L account.

serene
Top contributor
Top contributor

Posts : 4059
Join date : 2014-02-26

Back to top Go down

Re: Finance companies snapshot

Post by GroundedKestrel on Sun Jun 21, 2015 10:10 am

Going solely on the aforementioned table, what is the best stock on paper?
avatar
GroundedKestrel

Posts : 282
Join date : 2014-11-28

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Thu Jun 25, 2015 8:22 am

GroundedKestrel wrote:Going solely on the aforementioned table, what is the best stock on paper?

Not quite easy that. VFIN and LFIN are good in one way. PLC and SFIN look good too in their own ways.
ARPI might look good with the above numbers but it had a one-off gain as I remember which has the numbers inflated. ALLI - I have my doubts on the quality of its earnings.

Note the price has moved a bit since that table was published
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by balapas on Thu Jun 25, 2015 3:05 pm

Finance companies should target GOVT institutes to promote leasing, hire purchase and loans. Starting Jan govt sector monthly salary increased by rs10,000 by June. For doctors rs20,000 and nurses 13,000 due to salary plus an allowance increase. They have more money to spend so demand for leasing and loans will increase given that keeping money in a FD does not make much sense.

balapas
Top contributor
Top contributor

Posts : 761
Join date : 2014-02-23
Age : 38

Back to top Go down

Re: Finance companies snapshot

Post by Nuinth on Thu Jun 25, 2015 3:44 pm

balapas wrote:Finance companies should target GOVT institutes to promote leasing, hire purchase and loans. Starting Jan govt sector monthly salary increased by rs10,000 by June. For doctors rs20,000 and nurses 13,000 due to salary plus an allowance increase. They have more money to spend so demand for leasing and loans will increase given that keeping money in a FD does not make much sense.

Agreed balapas.

Further people will spend that extra money for some electric/electronic items like TV,computer, fridge, microwave, fans, cooker, oven etc etc.

Just came to mind Singer, Abans may have a plan for increase the promotion in those places & will give leasing facility via their leasing arm. ( SINS & SFIN) (ABAN & AFSL)

Good luck....!

Nuinth
Top contributor
Top contributor

Posts : 551
Join date : 2014-02-28
Location : Universe

Back to top Go down

Re: Finance companies snapshot

Post by Hybrid on Thu Jun 25, 2015 5:19 pm

AMF and ARPI are stable and well run.
Only problem is there are very little shares held by the public in AMF.

ARPI is a different kettle of fish and just taken over by AMF. so wait and see the results.
avatar
Hybrid

Posts : 745
Join date : 2015-02-03
Location : Colombo

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Sat Jun 27, 2015 7:32 pm

Please suggest addition and deletions to this list.

HUNTER, how about a BFI specific formula? Wink
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Wed Jul 01, 2015 3:08 pm

[You must be registered and logged in to see this image.]

[You must be registered and logged in to see this image.]

That's a nice piece of graph, isn't it?

As for the numbers, VFIN has the lowest ratio of Loans+Leases vs. Deposits+Borrowings. They've grown the deposit base faster than the loan book in the past year and the money has ended up in REPOs as at end of the period. VFIN is also the smallest among the above companies.
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by HUNTER on Wed Jul 01, 2015 9:22 pm

First Guy wrote:Please suggest addition and deletions to this list.

HUNTER, how about a BFI specific formula? Wink

Just noticed the thread, very late (As usual Very Happy ).

Like your presentation and the approach with multiple parameters and angles for analysis. ++

Usually, I am a bit reluctant (in fact lazy) to go for sector specific analysis, but will give a try from my end in this case.

(In order to do that...)

Would like to know if there are any sector specific parameters a 'buyer' might look at when consider a BFI share to buy.

Also would like to study how (with what parameters) we can judge the degree of success of a BFI company.

Also would like to study what make a BFI company different from other industries from an investors point of view.

(Now only I understand there is a lot to study...)
avatar
HUNTER
Top contributor
Top contributor

Posts : 1655
Join date : 2014-07-14

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Wed Jul 01, 2015 9:26 pm

There is always a LOT to study Very Happy

I'm no expert, but I share things that I analyze which may not be a norm or a standard. (This one is a norm though). Different investors will look at the same stock differently and have different values. It's when all of them meet (at a place like this), everyone can benefit and learn Smile Your formula is one such item.

avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Wed Jul 01, 2015 9:31 pm

As for BFI companies, the simplest explanation is the net interest income and the margin. I have not compared the margin as some of them don't report it in the reports (Banks do). Then the income from fees, trading etc., It's good to have a higher portion of these revenues specially during times of interest rate volatility.

When analyzing BFI companies, we need to check the amount of loans given vs. deposits (and/or borrowings). If they have not managed to grow the credit in line with deposits continuously, there could be a cause for concern.

Some might grow the loan book but not the deposit base, in which case the companies would look at higher cost borrowings. Another point to note is the maturity profiles of loans, deposits and debt. Most finance companies would have short term deposits which they hope would get renewed while attracting newer deposits.
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by Backstage on Wed Jul 01, 2015 10:02 pm

Wouldn't it be better to do BF as "I" will make a common formula more complex.
avatar
Backstage
Top contributor
Top contributor

Posts : 3312
Join date : 2014-02-24

Back to top Go down

Re: Finance companies snapshot

Post by HUNTER on Thu Jul 02, 2015 8:55 am

OK

It seems, even in BFI sector, when looked at minute details, different companies have reported the financial statements slightly differently.

However, I also feel, with everyone's help, we can come up with a 'common' tool to compare them successfully.

I would like to start the analysis with a top-down approach.

I propose, the main objective of the analysis would be to identify the following aspects of the company.

1. Growth potential (identify how fast the company can increase its value and increase benefits to owners)
2. Risk (what are the chances that the company would fail to achieve the above (Growth) )

Please propose any other 'basic' aspects we might take in to account.

In order to do the the above, we shall gather information from the following.

1. Published quarterly financial reports.

Right now I am limited to the above. Any other sources you propose?

In the reports, we will consider the following statements.

1. Income statements (Quarterly Group)
2. Financial position (Group)
3. Cash Flow (Group)

Anything else you like to propose?


In the above statements, we can consider the following line items for our calculations. Please suggest your view for removing or adding any items.

1. Income statements (Quarterly Group):

a)Total Equity attributable to equity holders of the parent
b) Interest Income
c) Interest Expenses


2. Financial position (Group)

a) Total equity attributable to equity holders of the
parent
b) Deposits From Customers
c) Loans and Receivables to Customers

3. Cash Flow (Group)

a) Net Cash Generated / (used in) from operating Activities
b) Interest Receipts
c) Interest Payments
d) Net Funds Advanced to Customers
e) Deposits from Customers


What do you feel?
Do you think this is good OR should we try adopting a different approach?









avatar
HUNTER
Top contributor
Top contributor

Posts : 1655
Join date : 2014-07-14

Back to top Go down

Re: Finance companies snapshot

Post by yellow knife on Thu Jul 02, 2015 9:11 am

When evaluating BFIs capital adequacy ratios are important..

If your are growing faster your T1 and T2 ratios will get affected making you to go for a rights issue..

Once after rights issue a company will face new set of problems..

In FBI sector fast growing companies have to undertake very high risk..

Therefore developing a common forumla will be a tricky one than in other industries...

yellow knife
Top contributor
Top contributor

Posts : 6089
Join date : 2014-03-27

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Thu Jul 02, 2015 11:17 pm

Quite true YK. There are a lot to look at from different angles. Capital, loan book, deposit base, credit quality, interest margin etc.,

I assume the "growing faster.." you mentioned is with reference to the credit growth. As profit growth will only improve the ratios (correct me if wrong). How much is paid back as dividends is also something to consider (although in the past even companies which had paid dividends went for rights soon afterwards).
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Re: Finance companies snapshot

Post by First Guy on Sun Jul 05, 2015 10:17 pm

I'll update this some time next week or weekend. Let's wait for LFIN to settle.
avatar
First Guy

Posts : 2533
Join date : 2014-02-22

Back to top Go down

Page 1 of 3 1, 2, 3  Next

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum