Though it is not a big issue, in my opinion they have done few manipulations over the years in the quarterly reports.
1. 2013 quarterly profits are as follows
Q1 - 5.51
Q2 - 2.81
Q3 - 2.88
Q4 - 0.15 (Mainly this reduction due to increase of depreciation. As per my analysis they have no charged depreciation correctly in the initial 3 quarters and finally they have put everything to the last Q)
2. Though addition of above 4 quarters of 2013 comes 11.35 at the audited accounts in has seen a drastic drop to 9.86. Yes, understood quarterly figures are not audited but still can there be this much deviations of a company which should have implemented proper accounting systems.
3. 2014 quartery reults are as follows.
Q1 - 2.44
Q2 - 6.58
Q3 - 5.49
Q4 - ?
Addition of the 3 quarters should be 14.51 but instead September accounts given as 12.50. And I expect a reduction of profits of 4th quarter due to some adjustments and might have to expect further reductions at the audited accounts.
So, my conclusion on the reliability of quarterly accounts of SDB is little bit towards the lower side.
Anyway, as most of you mentioned this has plenty of positive sides which compel us to invest.
1. Dividend payout ratio for the 2012 & 2013 were 73% and 71% respectively. So, though profits level reduced at the audits, we may expect 8+ dividend
2. Assuming audited EPS would be 12.00, PER of SDB is around 8 times as of today. So, we can expect a positive trend
3. Growth of loan portfolio and deposit base
All these based on my understanding about this share. I presently own SDB R bought from the right trading hoping to convert part of it to SDB N @ 80/-.
Experts/Friends your opinions on this highly appreciable.