Re: VFIN - where the journey leads it?

[slstockVeteran]

Nostalgia :

Found some saved comments I made on VFIN many years ago :
Fun to read now.

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Date : May 2013

VFIN price then : Rs 32 !!

First take a look at the report

http://www.cse.lk/cmt/upload_report_file/949_1369741250951.pdf

EPS 7.04 . YoY growth 22% under a difficult year
Current PE is around 4.5
NAV is 22.5

VFIN has been a growing very rapidly.

Their Capital requirement ratios are a bit worrying but this seems to be sign of a very aggressive company.

Is is still in a primary stage but is it going in the foot steps of LFIN ? ( still not sure why DP needs LFIN and VFIN)

Their branch expansion are happening and decent Dividend of Rs 1.25 - 1.5 possible soon.


Seems to be a worthy investment for the agressive or not? What are you views.

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Date : Nov 25 2013

VFIN price then : Rs 30.1 !!

those who silently watch and act during these "dull" time might get rewarded handsomely in the future.

I see 3 shares on my watch gaining more interest than usual. VFIN is 1 of them. The other one I talked about already. Some huge orders appear and dissapear ( but without filling )

The 3rd.. is not a "big" share in anyway .

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Jul 10, 2014

VFIN price : Rs 35

CRL has potential to grow fast as their branch network is still less. But right not I think VFIN is going to grow faster.

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2015

Update on Feb 16th VFIN:

Is VFIN getting ready for a run ? Compared to COCR this is worth clearly over Rs 60. Now at Rs 49. If it does LFIN can also run.

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Am sure if I dig more I can find better/more detailed analytical posts

[GroundedKestrel]

I am a very happy man because of you . Your sage advice kept me for losing my cool and thinking objectively. CIND also paid off handsomely too.

[Future123Active Member]

Thank you Sls. Full credit to you for highlighting this gem since Rs. 30. Still we have a long way to go with this and this grows day-by-day.

[First Guy]

A point to note - opening new branches does not have to mean more profits. There will be increased cost, at least at first. Then how about other finance companies in that area and the competition level? It depends on how much they market and manage to get in more customers.

[BackstageTop contributor]

We expect the next quarter to be good for fin companies, if the rates keep on increasing, wouldn't the profits start to reflect that ?

[GroundedKestrel]

Slstock, I am curious as to if you have you found the answer to your own question above? " still not sure why DP needs LFIN and VFIN?"

[slstockVeteran]

Well, I think in one of DP interviews he gave a reason. I forgot what as the reason did not strike me as special probably.

But, its good there is a VFIN ( company) separate from LFIN Think why with respect to VFIN ( as your interest is on VFIN)

Slstock, I am curious as to if you have you found the answer to your own question above? " still not sure why DP needs LFIN and VFIN?"

[GroundedKestrel]

First VFIN ad released!

https://www.youtube.com/watch?v=6VU5HsqHdyw

Hmmm.. you pose an interesting question Slstock. So far the only differences that i can tell (i have not studied LFIN) is that LFIN is more urban-centric whilst VFIN is targeted more towards the middle class. What about their gold portfolios?

I need to think more on this..

[Future123Active Member]

Oh my god...this is our Fib on achi boy no. Very intelligent boy and missing his videos.

GK, when you said first ad from VFIN I was excited to see it. I guess VFIN has not done any TV advertising before. I asked myself many times why they don't advertise on electronic media and my answer was that they are still too small in terms of number of branches. They should open at least another 10 branches for the advertisement to reach the Island.

Therefore, they should slowly increase the number of branches and make a profit of at least Rs. 150 million a quarter may be in a years time. For the time being I'm very happy about their growth in terms of number of branches and profit growth. If they can maintain the profit growth of 20% to 30% a year then sure VFIN will rock in the future.

[First Guy]

Didn't understand the first line Future.

Anyway I think you either get too optimistic or too pessimistic on certain things

Just a word of caution not to get carried away with the new branches. Initially it can be added cost. I agree with you that the positive effect of commercials will not be seen with few branches and they need more for that to be effective.

The commercial is very similar to COCR

[Future123Active Member]

FG, when I clicked the link it took me somewhere and Fib on Achi boy appeared. I don't know how it happened.    

https://www.youtube.com/watch?v=HNQVQubFPU4

Yes. I know that opening new branches is a burden on the P&L initially but the benefits would start in years or quarters to come. As I have traveled with LFIN over 6 years I know how they expanded. Now my dividend yield from LFIN is over 25% and I never thought of selling LFIN unless it becomes overvalued or manipulated to 250 or 300 at present conditions and earnings.

Anyway, GK, where this advertisement appeared? On which channel? I never watched?

Just got some info about next 2 branch openings. Wattala and Warakapola. But don't know how truth is this.

[GroundedKestrel]

A friend of mine mentioned it in passing that he had seen it at some corporate event. Then i did some research and found the ad. I do not know if they have launched it on our local television channels as of yet though.

Haha.. what happened to him? he used to be so involved in the other forum.

[Future123Active Member]

VFIN trading at attractive prices. Good opportunity to add more. Hoping for an EPS in excess of Rs. 10 for 2015/16.

VFIN has added at least 5 to 6 branches compared to the beginning of 2014/15. Future is bright with VFIN. You need to have patience to enjoy the full benefit of this growing company.

[First Guy]

Again, new branches won't being profits instantly. It will take time as you said so no need to keep posting the same thing friend

Other branches may contribute to the profit but new ones will initially affect it. Be sure to check all angles. Never be at either end of optimism and pessimism

[කිත්සිරි ද සිල්වාTop contributor]

I agree.
But be careful that you too would be branded a Attacker than a Challenger.    

Again, new branches won't being profits instantly. It will take time as you said so no need to keep posting the same thing friend
Other branches may contribute to the profit but new ones will initially affect it. Be sure to check all angles. Never be at either end of optimism and pessimism

[slstockVeteran]

Kithsiri, is this a continuation on the issue on your political comments and matter on Chinwi?
Best not continue it to VFIN. If he comes we can discuss that. Right now Chinwi matter should be looked at more depth and sensitivity.

I agree.
But be careful that you too would be branded a Attacker than a Challenger.    

[කිත්සිරි ද සිල්වාTop contributor]

You can take it whichever way you want to see it.

Kithsiri, is this a continuation on the issue on  your political comments and matter  on Chinwi?
Best not continue it to VFIN.  If he comes we can discuss that. Right now Chinwi matter should be looked at more depth and sensitivity. 

I agree.
But be careful that you too would be branded a Attacker than a Challenger.    

[GroundedKestrel]

Come now children

Let us put this quarelling aside and look into the matter at hand. My personal favourite stock has gone from Rs.73 to Rs.63.20 in a relatively short space of time!

Looked at the new list of Ministry Secretaries. It's a decent mix of both main parties. That and most the Financial Ministerial powers being divided up between Ranil, Malik, Kabir, Harsha/Eran.. Ravi boy won't have much room to mess with DP's stocks. Anyway, businessmen play the double game so i don't think he wouldn't waited without putting a substantial amount in both parties coffers.

[slstockVeteran]

Kithsiri, this is getting ugly and unnecessary taking topics off focus due to political views.
Chinwi is also not here, so take the "attack" or "challenge" after ( if) he returns here.
I told you how he felt.


Now lets continue on VFIN...


Guys , no need to worry about Ravi K effects on every DP company. There is no general way to effect 1
or 2 finance companies of person where 1000s of depositers are there

Also why worry about VFIn at RS 63.5 from Rs 72.5? Most part was correction. A little bit more on a too much red market. Many other shares came more % wise.

I am only concerned about one little thing on VFIN ( nothing political) presently but it may improve after september results . So lets see.

[pathfinderTop contributor]

Let us put this quarelling aside and look into the matter at hand. My personal favourite stock has gone from Rs.73 to Rs.63.20 in a relatively short space of time!
.

You don't have to worry if you are a MT or a LT investor.
If you are a trader you could have sell high and wait till the right time comes to
re-enter

[GroundedKestrel]

Thank you. I'm an investor Path, LT . What about you?

Up by Rs.3.70 today

[GroundedKestrel]

I am only concerned about one little thing on VFIN ( nothing political) presently but it may improve after september results . So lets see.

Hmmmm this "problem" got me thinking quite a bit. Slstock, is it the capital requirement ratio? hence the need to capitalise.. or the loan book vs public deposits spread?

[pathfinderTop contributor]

Thank you. I'm an investor Path, LT . What about you?

Up by Rs.3.70 today

I'm mostly a trader.

[GroundedKestrel]

Down by Rs.2.30!

Something to do with this vehicle leasing business? Wouldn't this wipe out "petti-kada" finance companies and further strengthen the strong ones?

I wish people thought long term

[GroundedKestrel]

Still dropping.....