Blue Whale wrote:Blue Whale wrote:A summarised financial analysis for whom interesting of BFN
Orient Finance Financial Analysis.jpg
It shows a good revenue growth over the years and expecting 3.3Bn for the year ending 2016/17. Also profitability is expected to be moderately higher compared to the last year's normalized PAT.
The merger with Bartleet Finance has made Orient Finance a strong second tier Finance company. Their loan book growth was really interesting with a growth of over 16% after the merger. By looking at the expected equity I think the requirement for a rights issue too not so near.
In terms of valuation following summery can be made available.
Based on industry PE the price will be 13.7 (based on 2016/17 earnings)
based on industry PBV the price will be 19.0 (based on 2016/17 estimated NAV)
The average price turn out to be 16.4 and the current price of Rs11.3 seems to be a at a discount of 30% from the real value. Therefore this share has further potential to go up in the short term. Also sometimes we could expect a dividend too.
Posted 6 months ago when trading @ 11.3. Now the stock is proving the value of this analysis. Closing in to the fair value. Especially I did this for GB and hopefully GB is pumped up now.
Yep.. Thank you BW... It was the biggest headache those days. later I dispose 2/3 of my holding and move with MAL, MASK and LDEV.
Now all my picks are giving good returns these days including BFN