FINANCE AND LEASING SECTOR

Thought it is good to compare these two companies since these two are subjected to very hot discussion in this forum. A summary of the comparison given below.

• BLI has shown a double or triple growth in their loan book as well as interest income while SFL is just normal growth.
  
• Also both BLI & SFL have same amount of loan book but BLI earns twice as much as interest income compared to SFL, how come is a question to me.
  
• On the other hand both companies have similar amount of interest expenses but BLI finances its loan book mainly from borrowings which are supposed to be higher than customer deposits while SFL mainly finances through customer deposits. In fact SFL's deposit base is more than 100% higher than BLI. Therefore ideally SFLs interest cost should be much less than BLI but it is not the case, why is another question to me.
  
• BLI generates much superior ROE compared to SFL and BLI's share price also trading on the floor very aggressively compared to SFL. In fact BLI have very high negative valuation gap whereas SFL has a positive valuation gap. So comparatively BLI is expensive than SFL at the moment.
  
• So now my feeling is there is some thing wrong either in BLI or SFL. Now I will open this discussion for the forum members to express more views. In fact that will help to understand true state of affairs of this two.
  

       

	2014/15				9M 2015/16
	BLI		SFL		BLI		SFL
	Rs mn	Growth	Rs mn	Growth	Rs mn	Growth	Rs mn	Growth
Interest income	672	143%	1,051	6%	1,546	207%	817	4%
Interest expense	174	110%	620	-7%	421	223%	444	-5%
PAT	144	125%	27.5	-67%	514	376%	84	307%
Deposits	1,066	95%	5,379	19%	2,025	90%	5,667	5%
Loans & advances	3,091	212%	4,936	10%	5,423	75%	5,349	8%
CMP (Rs)	40.40		179.90		63.10		16.70
PER (times)	15.1		41.2		13.2		12.5
OCF/share (Rs)	-         32.4		100.8		-         17.1		1.7
ROE	16.2%		2.8%		49.0%		10.4%
ROME	6.6%		2.4%		10.1%		10.7%
Value gap	-9.6%		-0.3%		-38.9%		0.2%

VFIN , NAV Over 45.00, PER Below 5.00, QTR EPS 4.00 ( Annualized 16.00+ -Stats From a Reliable Source ), 2015 / 16 EPS Over 12.50.. Worth more than 80.00 on current figures, with a Great future ahead with many more branches, innovative products..

This topic is to compare BLI Vs SFL. Ps do not confuse the objective of the topic.
Thanks

Sry..VFIN..LFIN..SAMP..HDFC are much more strong abd undervalued at this moment..pls refer FITCH Ratings recent warning report for Micro Finance Co's..

Dont speak BLI and SFL.

BLI 's PER is 13.2
SFL's PER is 12.5

VFIN's PER is  below 5
Lfin's 's PER is below 5
CDB's 's PER is below 5
CFIN's 's PER is below 5

Great Harry..You expect LFIN to pay 7.00 rp div ? And VFIN to pay 3.50 ?

EC don't worry. This is the standard of this forum. Some can't even understand the topic. What a shame..

BLI PASS Rs.80 soon

Ha..ha..Bimputh vs Sinhaputhra..why cant you compare these two shares with other finance companies also..same sector..same business..face to the truth..If you all think BLI and SFL much stronger than LFIN.VFIN.CFIN.PLC pls comeout with your rationals...

with result you can see what's going to happen, AND TO PLAY ANY Share need a player

Harry..whats ur target dividend payments from LFIN.VFIN.CFIN?

@charith666lk wrote:EC don't worry.  This is the standard of this forum. Some can't even understand the topic. What a shame..

Exactly charith, I am wondering what the hell is wrong with these guys. This is sickness. This is bad mental condition. This is utter rubbish. I am comparing two companies pointing some interesting differences. But these guys jump and posting other company info here, their valuations, target prices and some are posting on dividends. Totally irrelevant for the topic. this shows the impact of promotion and manipulation on our forum.

Harry, SLfinancewatch,fireshelter, please remove your glasses and comment only with relevant to the subject matter. Otherwise if I post Mahinda Rajapaksha going to toilet you guys will come and post toilet is not important but go for LFIN, VFIN,HDFC,Sampath because they are undervalued and pay good dividend.

You always following the makka theory. Completely ridiculous.

Do you exactly know the time Mahinda Rajapaksha goes to Toilet ? Do u compare Mahinda Rajapaksha go to toilet with BLI and SFL..hiks..too much rationals for your so called Investment Decisions

Toilet vs SFL..BLI

LFIN VS VFIN VS CFIN VS PLC VS SFIN..and other finance companies..but you cant take BLI and SFL To the comparison..This is how ec made investment decisions..

Can you guys read again what I have said here and my last comment. And try to enrich the discussion only if you have valid points to my questions I raised here. if not please don't comment. This is the last I will say.

Thought it is good to compare these two companies since these two are subjected to very hot discussion in this forum. A summary of the comparison given below.

• BLI has shown a double or triple growth in their loan book as well as interest income while SFL is just normal growth.
  
  
• Also both BLI & SFL have same amount of loan book but BLI earns twice as much as interest income compared to SFL, how come is a question to me.
  
  
• On the other hand both companies have similar amount of interest expenses but BLI finances its loan book mainly from borrowings which are supposed to be higher than customer deposits while SFL mainly finances through customer deposits. In fact SFL's deposit base is more than 100% higher than BLI. Therefore ideally SFLs interest cost should be much less than BLI but it is not the case, why is another question to me.
  
  
• BLI generates much superior ROE compared to SFL and BLI's share price also trading on the floor very aggressively compared to SFL. In fact BLI have very high negative valuation gap whereas SFL has a positive valuation gap. So comparatively BLI is expensive than SFL at the moment.
  
  
• So now my feeling is there is some thing wrong either in BLI or SFL. Now I will open this discussion for the forum members to express more views. In fact that will help to understand true state of affairs of this two.
  

Good Anzlysis..but Remember SFL or BLI not the best Finance Companies in SL..as well as in cse..These shares do not worth for investors as some other finance shares do..ex..LFIN.VFIN.CFIN.PLC..For the time being BLI or SFL will be good for trading like HVA..PCHH...Wish u good luck man..Need to learn lot about finance companies and Sector..simply you cant say borrowing cost is higher than deposit cost..It will change from company to Company..

@Harry82 wrote:EquityChamp,


Why you compare OVER VALUED shares.(BLI and SFL)


Compare under valued share like LFIN CDB VFIN CFIN.....

Again wrong path.
Can you explain the answer as to how BLI report twice as much as interest income than SFL having the same loan balance?
Can you explain the answer as to how BLI pays the same interest cost similar to SFL while financing the loans through external borrowings?

Do you know how much of retail investors are into these two stocks because of unnecessary promotion through this forum?
And can you feel the sufferings of them if one of these two are doing a big manipulation?

I don't want to highlight undervalued finance companies in this post but I want to commence a discussion on my above concerns.

do you understand the gravity of this????