BLI.N0000 ( Bimputh Finance PLC )

[yellow knifeTop contributor]

Every Sri Lankan successful businessman prefer to start up a finance company. Mr. Daya Gamage is a self-made businessman who started from scratch and from Eastern Province of the country.

In Sri Lankan post independence history its was Mr R. Premadasa who pushed businessmen into manufacturing sector. During his era apparel industry  was the main focus of every businessman and after his death businessmen slowly selected relatively passive service industry.

Daya Group by now consist of garment industry, property development, import export trading, aviation , tourism, agriculture, information technology and with Bimputh Finance include Fiance sector.

BIL became noteworthy last year

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

[yellow knifeTop contributor]

It has not declared dividends so far

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

[yellow knifeTop contributor]

Growth of Net Assets was a very slow upward movement

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

[yellow knifeTop contributor]

One important feature of the company is its lowest NPL so far I've seen in fiance field.

Non Performing Advances (NPA) at reporting date amounted to Rs 28.4 Million or 0.92 per cent of the portfolio. The corresponding figures at previous year end were Rs 17.1 Million and 1.73% respectively. The NPA ratio of 0.92 is really a bench mark specially for a firm depending on Micro Fiance.

During the year company provided Rs 52.9 million as impairment loss on financial assets increasing the total loan loss provisions to Rs 69.5 million. Almost the entirety of NPA is in agricultural and personal loan category.

Basically these numbers shows if you take absolute value Non Performing Advances have gone up from 17 Million to 28 Million.

But NPA ratio has come down as the Total Revenue has increased.

Thus in NBFI sector NPA value is a relative figure where its real impact can be concealed with increase of Income.

[yellow knifeTop contributor]

There were two rights issues during the short period of listing. It is one way for the owners to increase capital to pave way for growth of the company.

RIGHTS ISSUE DATES   
23 November 2012
Date of Initial Announcement: - 26-Oct-2012
Proportion: - One (01) new ordinary share for every three (03) shares held
Issue Price: - Rs.11.50/-

RIGHTS ISSUE   
11 April 2014
Date of Initial Announcement: - 24.Mar.2014
Proportion: - One (01) new ordinary share for every One (01) existing ordinary share
Issue Price: - Rs. 12.50
Qty Offered: - 26,933,336

[yellow knifeTop contributor]

Today the company announced a sub-division on over-heated share.

The share was last traded at Rs 138.70.(12th Oct 2015)

For a long-term holder this is not at all the right time to enter. Further a company which has not so far paid dividend is not at all suitable for a dividend hunter.

Considering the EPS company is in a position to declare a maiden dividend soon.

These shares are traders heavens and only technical aspect will justify the buying.

[yellow knifeTop contributor]

Cartoonist Walter Disney used to say that its difficult to compare between one.

So lets compare BLI with PLC. These two companies data appear since 2012 as both got listed in same year.

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

[yellow knifeTop contributor]

Such a over valued share becoming sky rocketing can only be justified using technical charts .

[yellow knifeTop contributor]

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

[chutiputhaTop contributor]

Thank U Sir,I never looked on this counter earlier
Interesting

[smallvilleTop contributor]

Such a over valued share becoming sky rocketing can only be justified using technical charts .

Well techs have no explanation either.. this is pure manipulation. We called this speculation sometimes where ppl take it to higher and higher without any apparent reason..
One fact is the liquidity - this is illiquid if you ask me. Few shares are needed to take it up 3-4 rupees. Yesterday as I can remember this was up from 135 to 147 in no time and with less than 10K shares. Then it traded downwards-upwards and finally settled low.

So should we guess it has to stay below 140? I dont think so.. with 20 days for subdivision, there's much to expect. Will they deliver soon?

And the other thing I feel is its not prudent to compare PLC with BLI cuz that's like ur comparing a giant with a dwarf. BLI is also into micro so perhaps if you take COCR, imo it would suit more.

[yellow knifeTop contributor]

Agree with you Small

Apples should be compared with apples and not with olives.

However I just took PLC to show that BLI is over valued.

[Market loverTop contributor]

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

[yellow knifeTop contributor]

Thanx Market Lover

Oct 14, 2015 (LBO) – Fitch Ratings Lanka has assigned Sri Lanka’s Bimputh Finance plc with a national long-term rating of ‘BB(lka)’ and a stable outlook.
 
The full statement follows: 
Fitch Assigns ‘BB(lka)’ Rating to Bimputh Finance; Outlook Stable 
Fitch Ratings Lanka has assigned Sri Lanka-based Bimputh Finance PLC (Bimputh) a National Long-Term Rating of ‘BB(lka)’ with a Stable Outlook.

[BullvsBear]

YK,

Did you notice today's trading ...
Somebody grab 18000+ quantity in one shot at Rs 131/- ..

IMO- BLI will give another major trading opportunity for us...

[yellow knifeTop contributor]

BB

Its like this... when you are into trading you should be very clear that you are trading...

That is timing is very important...If timing is wrong then immediately turn to stop loss...

[BullvsBear]

Very True....Y K

Lot of positives for BLI...

[smallvilleTop contributor]

This was trying to get pushed up above 140 but by noon sell orders drag this to 136s again.. yesterday 32k vol traded.

However, Last time the run from 90s was initiated after 6days from P.SAR signal. MACD confirmation came at 118.

PSAR has turned now.. traded 3 days as well.
Bollinger bands hav squeezed - meaning a breakout is near..
MACD confirmation - Pending.. however, last time it was delayed.

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

[yellow knifeTop contributor]

Thanx for Technical updates small

[NuinthTop contributor]

This was trying to get pushed up above 140 but by noon sell orders drag this to 136s again.. yesterday 32k vol traded.

However,  Last time the run from 90s was initiated after 6days from P.SAR signal. MACD confirmation came at 118.

PSAR has turned now.. traded 3 days as well.
Bollinger bands hav squeezed - meaning a breakout is near..
MACD confirmation - Pending.. however, last time it was delayed.

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

Thx Small,

I also looking with few hundreds...

[pathfinderTop contributor]

Being a highly illiquid share the normal conventional technicals may not work for BLI.

[sashimaalTop contributor]

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

[pee ratioActive Member]

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

adey when i looking at shareholding list i am seeing shareholders 9 and 10 as

9.  FIRST CAPITAL MARKETS LIMITED/PATTON INVESTMENTS (PVT) LIMITED 800,000 1.49 %
10. FIRST CAPITAL MARKETS LIMITED/ROMMEL INVESTMENTS COMPANY (PVT) LTD 800,000 %

aney i am getting scared men. Patton & Rommel comming to invest like no ? Patton was American 5 star General and Rommel was Field Marshall for Hitler in North Africa in World War 2. Rommel also knoed as Desert Fox.  Now what are the Buggers doing here ah ? Re-Incarnation dey ? we are finished then already one field marshal here too many. not know what the Fox Ran-Nil will do. No desert for him only soup. always he in a soup like. now apey Maara pannah has also eloped with Avanthi Gardener.  

But Pee liking that Gammey fellow. he saving stock market. but Patton & Rommel is tricky. Hitler also must be around no. Tora Tora Tora deh ?

[Future123Active Member]

Quiet amazing how BLI made Rs. 176 million quarterly profit up from Rs.43 million which is 304% increase.

They have heavily borrowed. Amount due to banks and other institution is Rs. 4.7 billion compared to Rs.1.1 billion a year ago. This is over 400% increase. They are getting maximum benefit from the government banks through political influence.

BLI mainly in to micro finance and grameen. They charge excessive interest rates for these loans and hence the profit margin is much higher.

I would like to see VFIN also shifting to micro finance. VFIN made only Rs. 110 million for September quarter but BLI made Rs. 176 million for September quarter.

Still BLI is much over valued counter and it's good only for trading.

[smallvilleTop contributor]

For the last 6 months;

Equity holders show a 495% increase with 312 million profits. EPS is Rs. 5.79.

On Assets side;

- Loans and advances improved to 5.22 billion from 3,09 billlion. That's a 69% growth.
- Cash and bank balances improved to 387.7 million from 181.18 million. That's again 114% increase.

On Liabilities side;
- Due to banks & other institutions increased to 4.74 billion from 2,563,278,338
billion. That's 85% increase.

Now NAV has improved to 22.25 from 16.47. This translate to 6 PBV where its really high for a financial institute.
However, we've seen this typical growth from COCR as well when the share price was around 15-20. Their PBV was over 3.0 and was a growing company.

- Customer Deposits improved to 629 million from 495 million. A 27% increase.
- Borrowings increased by 2.5% to 2.17 billion from 2.12 billion.

There are 53.86 million Ordinary Shares. Would get doubled by 2 days.

Micro business is tricky. Big companies have a difficulty in reaching rural areas as only daily collections would do the trick. Practically small players have the ability to carry out this "collection" task with area managers appointed.

Anyways, BLI's results are astonishing imo.. I hope the share price wont disappoint us