Asian Alliance Insurance (AAIC) - Renewed Interest

Prince

Prince

Senior Manager - Equity Analytics

Posts : 369
Equity Stars : 5603
Reputation : 175
Join date : 2011-04-20
Location : Colombo

renewed interest could see in the AAIC counter today. hope following inforamtion help members to take any decision.

Year to date share volume : 4,497,800
Month to date share volume : 210,700
Today's share volume : 38,100

Asian Alliance Insurance (AAIC) - Renewed Interest Aaic_110

Asian Alliance Insurance (AAIC) - Renewed Interest Aaic_110

Asian Alliance Insurance (AAIC) - Renewed Interest Aaic_210

Asian Alliance Insurance (AAIC) - Renewed Interest Aaic_310

Asian Alliance Insurance (AAIC) - Renewed Interest Aaic_410

Asian Alliance Insurance (AAIC) - Renewed Interest Aaic_510

Mon Jun 20, 2011 3:45 pm by Buddybuddy · Mon Jun 20, 2011 3:45 pm by Buddybuddy

Hi... Prince !!!

It seems that we have likings in common.....
Ironically I collected some AAIC today hoping this would exceed 200 this week.....

Happy Trading......

Mon Jun 20, 2011 6:58 pm by enslive · Mon Jun 20, 2011 6:58 pm by enslive

PE based valuation is 80 Rolling Eyes

already trading @ 100% premium Mad

who the hell going to take further risk Suspect

I sold @ 148 Basketball

, Happy trading Very Happy

Mon Jun 20, 2011 7:20 pm by **mark** · Mon Jun 20, 2011 7:20 pm by **mark**

enslive wrote:PE based valuation is 80 already trading @ 100% premium who the hell going to take further risk I sold @ 148 , Happy trading

where is the figures?read this up to down...........

http://forum.srilankaequity.com/t4513-asian-alliance-aaic-for-sale?highlight=AAIC#30435

see that price and now price

Mon Jun 20, 2011 7:29 pm by enslive · Mon Jun 20, 2011 7:29 pm by enslive

http://www.cse.lk/welcome.htm , 2 Q report yet to come . Does it make much difference Question

Mon Jun 20, 2011 7:59 pm by nkalansu · Mon Jun 20, 2011 7:59 pm by nkalansu

enslive wrote:PE based valuation is 80 already trading @ 100% premium who the hell going to take further risk I sold @ 148 , Happy trading

Well just to give you some figures as at year ended 31.12.2010.....
EPS as at 31.12.2010 Today price PE
Ceylinco Insurance Rs. 37.66 Rs. 720 19.12
Aviva NDB Rs. 20.01 Rs. 283 14.15
Union Assurance Rs. 13.65 Rs. 220 16.12
Janashakthi Rs. 2.12 Rs. 17.10 8.02
Asian Alliance Rs. 13.73 Rs. 162 11.79
Note : please note that figures for 31.03.2011 are not available for all the companies. That is why i have used 31.12.2010 figures for EPS.

Even if you look at the above just taking a PE of 10 will give you a Price of Rs. 137.30 for Asian Alliance based on EPS for 2010 financial year. Since half of the year 2011 is almost over i expect all the insurance companies to post better results now. So you could expect improved earnings from AAIC. I think it is still undervalued share in the sector when you compare with industry leaders. Janashakthi is also attractive share. I think it is the most attractive from the lot.

I just wonder from what figures you have arrived at a PE based valuation of Rs. 80 for Asian Alliance.

Disclosure : I hold Janashakthi. I do not hold AAIC

Last edited by nkalansu on Mon Jun 20, 2011 8:00 pm; edited 1 time in total (Reason for editing : Additional information)

Mon Jun 20, 2011 9:22 pm by kam2011 · Mon Jun 20, 2011 9:22 pm by kam2011

Dear Prince, Thank you for giving us some useful information on this sector. As you pointed out except for JINS, AAIC is the best in terms of PE. However PE is not the only factor to determine the price.In addition to PE as we are aware Investors always give value to share based on many other factors such as company reputation,independed rating,products popularity, stong brand names, broader distribution network,competitiveness and market share, reputation of the management,relationship with trade unions , strong balance sheet etc. Because of these reasons PE of most of the bluechips are quite high. But long term investors continuosly collect bluechips and they have little interests on other shares even with very low PE which are not categorized as bluechips . Therefore it is not advisable to take dicisions to buy/sell/hold shares only on PE terms.

In fact I have some AAIC shares (which I collected 2-3 weeks ago at 130-135 level) and today some potion of it I sold at 162 and 164 level . I too believe that even this share has become attractive currently due to some other reasons but not because of its PE.