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Sanasa Development Bank (SDB) - A financial analysis
Just had a look at it due to the interest after 5 rupee dividend.
On financial grounds;
Looking at their June Qtr results, PAT has declined compared to last year..
I see the fact is due to increase in several expense criteria;
1. Other operating expenses up to 343 mil in 2012 from 274 Mil in 2011.
2. Interest expenses have gone up which resulted in a marginally improved interest income of 879 Mil.
3. Personal costs have also gone up by 28% in 2012 to 220 Mil compared to 172 Mil in 2011.
Therefore PBT was declined to 229 Mil in 2012 compared to 322 Mil in 2011.
Further, I see the profit decline of 26% YOY due to the above highlighted issues.
SDB recorded a PAT of 111.6Mil in 2012 compared to 150.2 Mil in 2011. In EPS wise its 4.43 in 2012 where as it was 5.96.
Other than that total deposits see abt a 15% improvement YOY.
It has to be emphasized that have lost heavily on trading securities. It was astonishing to see a 246 Mil trading security value in 2011 has decreased by 88% to a mere 29 Mil in 2012.
Return on Equity (After Taxes) = 7% (13.4% in 2011.)
Top 20 shareholders
Sanasa holds 13.73% thru various accounts.
Other shareholders - 71.29%
The important note is the percentage of public holding as at 30-06-2012 = 99.98%
T Karunasena, deputy Chairman, has collected abt 2638 shares from June - Sep in range 75-96.
Well its a bit of interesting after the PBV calculation..
Net Asset Value (NAV) = 3,156,395,000
NAVPS = 125.37
Total No. of Shares = 25, 175,322
Last Traded Price (Rs.) = 93.00
PBV = 0.74
Since a financial institute trades at 1.5-2.0 X PBV, on PBV basis SDB is heavily undervalued. The fair value imo would be around 187.5/- (1.5X PBV)
I've not looked at the share trading but since it attracted interest among crowd after div announcement I gave a shot.. Found some interesting facts on trading..
WTD Share Volume 171,615
MTD Share Volume 246,218
YTD Share Volume: 373,464
See the above figures.. Entire years trading is 373K but 246K is done in this month.
This has started trading in 770s while dropped to 70s in end of August. But gradually came up to 93s now..
On the date of div announcement: - 26.Sep.2012 , it has risen to 98 from 70 and closed at 92. 168013 shares traded on that date.
Yesterday also 74097 shares traded.
However their div is great.. 5 rupee for a share under 100 is really good.
I cannot comment on the further price actions without checking charts.. But the irony is; for a 5 rupee dividend this has appreciated more than 20 rupees. So after XD of 5th Oct, 2012, the price may re-adjust to 70-80s level.
On the other hand looking at PBV of 0.74, this looks way undervalued in Financial sector.
So if you wanna invest, this can become a good pick.. However time must the story since SDB has to prove their stability thru their earnings in coming qtrs..
BTW.. Isn't a hostile take over possible due to the 99.98% public holding??
Just had a look at it due to the interest after 5 rupee dividend.
On financial grounds;
Looking at their June Qtr results, PAT has declined compared to last year..
I see the fact is due to increase in several expense criteria;
1. Other operating expenses up to 343 mil in 2012 from 274 Mil in 2011.
2. Interest expenses have gone up which resulted in a marginally improved interest income of 879 Mil.
3. Personal costs have also gone up by 28% in 2012 to 220 Mil compared to 172 Mil in 2011.
Therefore PBT was declined to 229 Mil in 2012 compared to 322 Mil in 2011.
Further, I see the profit decline of 26% YOY due to the above highlighted issues.
SDB recorded a PAT of 111.6Mil in 2012 compared to 150.2 Mil in 2011. In EPS wise its 4.43 in 2012 where as it was 5.96.
Other than that total deposits see abt a 15% improvement YOY.
It has to be emphasized that have lost heavily on trading securities. It was astonishing to see a 246 Mil trading security value in 2011 has decreased by 88% to a mere 29 Mil in 2012.
Return on Equity (After Taxes) = 7% (13.4% in 2011.)
Top 20 shareholders
Sanasa holds 13.73% thru various accounts.
Other shareholders - 71.29%
The important note is the percentage of public holding as at 30-06-2012 = 99.98%
T Karunasena, deputy Chairman, has collected abt 2638 shares from June - Sep in range 75-96.
Well its a bit of interesting after the PBV calculation..
Net Asset Value (NAV) = 3,156,395,000
NAVPS = 125.37
Total No. of Shares = 25, 175,322
Last Traded Price (Rs.) = 93.00
PBV = 0.74
Since a financial institute trades at 1.5-2.0 X PBV, on PBV basis SDB is heavily undervalued. The fair value imo would be around 187.5/- (1.5X PBV)
I've not looked at the share trading but since it attracted interest among crowd after div announcement I gave a shot.. Found some interesting facts on trading..
WTD Share Volume 171,615
MTD Share Volume 246,218
YTD Share Volume: 373,464
See the above figures.. Entire years trading is 373K but 246K is done in this month.
This has started trading in 770s while dropped to 70s in end of August. But gradually came up to 93s now..
On the date of div announcement: - 26.Sep.2012 , it has risen to 98 from 70 and closed at 92. 168013 shares traded on that date.
Yesterday also 74097 shares traded.
However their div is great.. 5 rupee for a share under 100 is really good.
I cannot comment on the further price actions without checking charts.. But the irony is; for a 5 rupee dividend this has appreciated more than 20 rupees. So after XD of 5th Oct, 2012, the price may re-adjust to 70-80s level.
On the other hand looking at PBV of 0.74, this looks way undervalued in Financial sector.
So if you wanna invest, this can become a good pick.. However time must the story since SDB has to prove their stability thru their earnings in coming qtrs..
BTW.. Isn't a hostile take over possible due to the 99.98% public holding??
