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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » #LFIN - WORTH RS 220/- @ 10 PE

#LFIN - WORTH RS 220/- @ 10 PE

+3
Harry82
SLFINANCEWATCH
ONTHEMONEY
7 posters

Go down  Message [Page 1 of 1]

1#LFIN - WORTH RS 220/- @ 10 PE Empty #LFIN - WORTH RS 220/- @ 10 PE Sun Oct 18, 2015 7:25 pm

ONTHEMONEY


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Hi Guys,

Please assess LFIN's potential;

SecurityIDNameTypeDescriptionProportionDividend
(Rs)
QuarterAnnounced
date
Price prior to
Anno.dt
Current/EX
Price
Price
Change
EX DatePayment
date
 
LFINN0000LB FinanceDDividend1.00Interim21-Mar-200683.0085.002.0030-Mar-200612-Apr
LFINN0000LB FinanceBBonus2 for 5  15-Aug-200679.7552.25-27.5009-Oct-2006 
LFINN0000LB FinanceRRights1 for 2 @17.00  19-Sep-200741.5025.00-16.5028-Nov-2007 
LFINN0000LB FinanceDDividend2.251st & Final02-Jun-200822.7519.25-3.5029-Jul-200804-Aug
LFINN0000LB FinanceRRights1 for 7 @17.00  02-Jun-200822.7519.25-3.5029-Jul-2008 
LFINN0000LB FinanceDDividend3.001st & Final26-May-200922.5036.0013.5001-Jul-200910-Jul
LFINN0000LB FinanceDDividend5.00Interim29-Apr-201094.2588.00-6.2507-May-201018-May
LFINN0000LB FinanceBBonus1 for 1  12-Jan-2011309.40147.10-162.3007-Mar-2011 View
LFINN0000LB FinanceDDividend3.501st & Final08-Jun-2011185.00175.80-9.2001-Jul-201107-Jul
LFINN0000LB FinanceDDividend5.001st & Final08-Jun-2012100.00121.2021.2002-Jul-201209-Jul
LFINN0000LB FinanceDDividend6.501st & Final03-Jun-2013129.90123.00-6.9001-Jul-201309-Jul
LFINN0000LB FinanceDDividend6.501st & Final02-Jun-2014116.00123.807.8001-Jul-201409-Jul
LFINN0000LB FinanceDDividend10.001st & Final22-May-2015202.00224.6022.6002-Jul-201510-Jul
LFINN0000LB FinanceSSub-Division1 INTO 2  20-May-2015185.90226.6040.7009-Jul-2015 View


LFIN has gradually increased its Dividend payout ratio during the history and EPS is Rs 5.6 for 1Q 2015.(Annualized - Rs 22.4). Hence the PE is 5.3 times.

Therefore if we calculate the expected market value of LFIN @ following PE levels;

Market PE @ 8         = Rs 179.2
Market PE @10       = Rs 224.0
Sector PE @ 12.93  = Rs 289.63

Therefore in the worse case any investor would be in the safe side since it is trading at a PE of 5.3 times. 

Further LFIN maintaining a diversified portfolio of business. It contains Leasing/hire purchase, Islamic Financing, Mortgage Loans, Factoring, Micro Finance, Pawning, Margin Trading, etc. Also recently company has introduced an innovative product to capture an untapped market of informal money lenders @ a lower rate. I guess this would bombard the market @ lower rate compared to informal lenders with aggressive marketing strategies of LFIN coupled with riders recoveries at business points. This is first time a bank or a finance company approached this market.

Company has made losses with Gold pawning business during 2012. However company now have diversified its portfolio to minimize the risk. Currently LFIN concentrates only 8%-10% on pawning business out of their total advances portfolio. Hence diminishing Gold rate in global market is less impact-full compared to 2012. Further global gold rates are at the rock /bottom since 1970. 

Further LFIN main business is leasing. During 2014, the imports of electric hybrid vehicles to Sri Lanka accelerated by 175% in terms of volume and 223% in terms of value. Reduction of duties for hybrid electric vehicles during 2014 was the reason for this boom. Japan is the major import source of hybrid electric motor cars to Sri Lanka accounting for more than 95% of the market followed by Germany.


Hybrid Vehicles imports during 2010-2014(Source - Chamber of Commerce)

 
Year Volume(No)  Value(Rs/Mn) 
2010            438.00                                   980.00
2011        5,927.00         14,440.00
2012        1,943.00                                5,439.00
2013        9,707.00         20,430.00
201426,729.00         66,004.00
The above trend has drastically increased during 2015. The market for vehicles is volatile in SL currently due government intervention. However banks and Finance companies can take an advantage with proposed changes by advancing in to registered vehicles market, Indian and other low branded vehicles which is predicted to increase sales due to import duty changes for high optioned Japanese vehicles. 

In the mean time Gold has settled its pricing after a long downfall. However, commodity researches believe that gold prices to escalate from this point. This is a favorable indication for the Banking and finance companies where they can convert Question Mark product of Gold to a Star product in portfolio matrix.


Therefore considering the above facts I would like to recommend LFIN as a highly undervalue counter with high potential. Many investment funds, corporate investors eye as a medium/Long term investment due to its earnings potential and Dividend Yield . 

In my purview LFIN would be the next SDB....! For stock to perform it should have fundamentals together with drivers of the market creeping in. However no one knows exact timing of the counter breaking the shackles.

Happy Investments

2#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Sun Oct 18, 2015 7:44 pm

SLFINANCEWATCH

SLFINANCEWATCH
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Same scenario with VFIN, only difference is LFIN is a more matured entity..

3#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Sun Oct 18, 2015 8:23 pm

SLFINANCEWATCH

SLFINANCEWATCH
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

VFIN EPS = 10.25,( Year End it will be.around 12.00 ) at this level worth 100+, Also small no of shares..After this F/Y VFIN will worth 120+..

4#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Mon Oct 19, 2015 6:57 am

Harry82

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

That is true onthemoney

5#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Tue Oct 20, 2015 12:51 pm

ONTHEMONEY


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Hi Guys,

Bullish sentiments has plugged in to LFIN counter it seems.

To my instincts, many funds managers in insurance, bansking and wealth management have significant interest over the this counter which is trading 5.3x PE.

Even if you hold it for a year, a rational investor gets a minimum dividend return of Rs 5/- per share. That is 4% p.a. In absolute terms its savings rate provided by commercial banks these days. Additionally counter potential is predicted at Rs 220/- in relation to PE 10x times. That is almost 80% in the long run.

Therefore it is a must have for people who would like to invest and hold for long run to gain a return over long run. 

Additionally #HDFC and #VFIN are counters to watch which are trading very much undervalued prices.

Happy Investments

6#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Wed Oct 21, 2015 7:28 am

Harry82

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Today's target price is rs 130.00?

7#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Wed Oct 21, 2015 7:29 am

Harry82

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Onthemoney's justification is very good.

8#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Wed Oct 21, 2015 7:54 am

capitallinkceylon


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

LFIN is highly undervalued stock but for some reason it never trades above PE ratio 7 times for last 3-4yrs. good dividend yield also.

Can anyone explain the reason behind it, when shares like SFIN, SDB, arpico finance, CRL, SFL, BLI and COCR trades above PE ratio 10times LFIN trades well below PE ratio 7 times for the last few years.

9#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Thu Oct 22, 2015 10:26 am

Harry82

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

LFIN - Started to  run -----

10#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Mon Oct 26, 2015 7:21 pm

gainonly


Manager - Equity Analytics
Manager - Equity Analytics

Great results

11#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Mon Oct 26, 2015 9:22 pm

ONTHEMONEY


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Hi Guys,

Impressive results from Banking and Finance sector. #LFIN and #PABC have recorded tremendous growth in profits.

It is clear that #LFIN stable performance and sustainability over the period. The company has satisfied the shareholder value to its maximum through following;

1. One of the richest dividend paying company(pls refer the above analysis)
2. Substantial capital gains in secondary market.
3. Value for long term investors through sub-division of stocks.

We can observe significant level of earnings growth during the quarter and for last 6 months despite losses made in Gold business, interest rate hikes, capitalization of shares. These are challenging situation a company can face. Even larger banks such as #SAMP found hard to bear the losses made from Gold which was Rs 3.0Bn and the share collapsed to Rs 169/-. However #LFIN being an street smart and innovative financial solutions provider has idetified key opportunities in the market and always perform exceptionally. 

Many worried about above challenges even in this forum. #LFIN has answered to all. 

The key fact to consider is the growth in leasing business in future for #LFIN. However #LFIN aggressively market its leases for registered and low optioned Indian vehicles such as two wheeler, three wheeler and other small vehicles. The prices of these vehicles have not increased with later tax revise. Only Japanese vehicles have the major impact. Further with this price hike there is an opportunity cater to registered vehicle market than ever. As an aggressive company we are positive on future of # LFIN amidst these challenges.

Therefore considering the above facts I would like reconfirm my recommendation on LFIN as a highly undervalue counter with high potential. Currently trading @ 5X forward PE. Many investment funds, corporate investors eye as a medium/Long term investment due to its earnings potential and Dividend Yield . 


Price targets @ 10 forward PE


# LFIN - Rs 220/-
# PABC - Rs 45/-


Happy Investments

12#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Mon Oct 26, 2015 9:27 pm

gainonly


Manager - Equity Analytics
Manager - Equity Analytics

[quote="ONTHEMONEY"]Hi Guys,

Impressive results from Banking and Finance sector. #LFIN and #PABC have recorded tremendous growth in profits.

It is clear that #LFIN stable performance and sustainability over the period. The company has satisfied the shareholder value to its maximum through following;

1. One of the richest dividend paying company(pls refer the above analysis)
2. Substantial capital gains in secondary market.
3. Value for long term investors through sub-division of stocks.

We can observe significant level of earnings growth during the quarter and for last 6 months despite losses made in Gold business, interest rate hikes, capitalization of shares. These are challenging situation a company can face. Even larger banks such as #SAMP found hard to bear the losses made from Gold which was Rs 3.0Bn and the share collapsed to Rs 169/-. However #LFIN being an street smart and innovative financial solutions provider has idetified key opportunities in the market and always perform exceptionally. 

Many worried about above challenges even in this forum. #LFIN has answered to all. 

The key fact to consider is the growth in leasing business in future for #LFIN. However #LFIN aggressively market its leases for registered and low optioned Indian vehicles such as two wheeler, three wheeler and other small vehicles. The prices of these vehicles have not increased with later tax revise. Only Japanese vehicles have the major impact. Further with this price hike there is an opportunity cater to registered vehicle market than ever. As an aggressive company we are positive on future of # LFIN amidst these challenges.

Therefore considering the above facts I would like reconfirm my recommendation on LFIN as a highly undervalue counter with high potential. Currently trading @ 5X forward PE. Many investment funds, corporate investors eye as a medium/Long term investment due to its earnings potential and Dividend Yield . 


Price targets @ 10 forward PE


# LFIN - Rs 220/-
# PABC - Rs 45/-

Lfin will lead this time.
Lowest pe in the market.

Magic stock

13#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Mon Oct 26, 2015 9:41 pm

ONTHEMONEY


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Hi Guys,

Pls note a small amendment on #PABC price forecast as Rs 35/- to Rs 40/- on annualized earnings.

Displays impressive earnings potential as well.


Happy Investments

14#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Mon Oct 26, 2015 9:51 pm

Harry82

Harry82
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Rs 200.00 possible within 3 months

15#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Wed Oct 28, 2015 12:46 pm

tommiya


Equity Analytic
Equity Analytic

the markdown on gold prices  had a severe adversity on the banking sector and as it continues we will see the reflection  in the quarterly reports being released even though other sectors may vouch the losses sustained over the last two quarters 
How well the gold market reacts in the next quarter is what we need to look at to see an uptrend in the banking sector.

16#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Wed Oct 28, 2015 6:50 pm

Mr. Belfort

Mr. Belfort
Manager - Equity Analytics
Manager - Equity Analytics

Future is good...But might come back to 118 Level once more before starting the engines..

17#LFIN - WORTH RS 220/- @ 10 PE Empty Re: #LFIN - WORTH RS 220/- @ 10 PE Fri Nov 27, 2015 5:14 pm

Mr. Belfort

Mr. Belfort
Manager - Equity Analytics
Manager - Equity Analytics

Mr. Belfort wrote:Future is good...But might come back to 118 Level once more before starting the engines..

This was one month ago. Apparently I am getting close to be a pro !

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