DFCC BANK PLC (DFCC.N0000)

DFCC has fallen to 168 after giving a good devident. Has anyone done a analysis on this? what is the fair value of this stock? What does the future hold for DFCC? thanks experts for the guidance and help given to us always.

Light of Hope wrote:DFCC has fallen to 168 after giving a good devident. Has anyone done a analysis on this? what is the fair value of this stock? What does the future hold for DFCC? thanks experts for the guidance and help given to us always.

If you are a long term invesotr DFCC is attractive and a solid blue chip.

Here are some note on this I made before

"DFCC: We should look at DFCC with a different mind set. This is a financial giant for decades. Any old , long term share holder ( I am not that old but am old haha) will know that. Though it not a share that will make you rich overnight like the gambling ones, DFCC has always looked after its share holders in the long term. Just look who is in the top 20 share holder list and decide. Period. Remember this is one of the oldest and highly regarded financial institutions in the country. A Blue Chip with much regard due to it strength and management. Banks like this should/would trade with a premium due to its place in the sector. (Like JKH,SPEN is doing in their sector). DFCC showed a good improvement last december in results. We should not expect massive differences in gain for more established large cap banks like DFCC,COMB,HNB. If you read the Chairmans comments they even mentioned about the March Tax benefits kicking in due course. So it should up their profits. In summary , in my opinion this is one of the most solid shares to hold in ones Long Term portfolio.If you like short term profits and miracles this is not the share though. However for shot term also note that DFCC is extremely over sold now and it would bring short term profit with a run. DFCC is now trading in august/september prices as in much before the bonus)."

AFter thhis note I saw they declared a hefty dividend it went up and now it down to the lowest I have seen with the last 7-8 months

slstock wrote:

Light of Hope wrote:DFCC has fallen to 168 after giving a good devident. Has anyone done a analysis on this? what is the fair value of this stock? What does the future hold for DFCC? thanks experts for the guidance and help given to us always.

If you are a long term invesotr DFCC is attractive and a solid blue chip.

Here are some note on this I made before

"DFCC: We should look at DFCC with a different mind set. This is a financial giant for decades. Any old , long term share holder ( I am not that old but am old haha) will know that. Though it not a share that will make you rich overnight like the gambling ones, DFCC has always looked after its share holders in the long term. Just look who is in the top 20 share holder list and decide. Period. Remember this is one of the oldest and highly regarded financial institutions in the country. A Blue Chip with much regard due to it strength and management. Banks like this should/would trade with a premium due to its place in the sector. (Like JKH,SPEN is doing in their sector). DFCC showed a good improvement last december in results. We should not expect massive differences in gain for more established large cap banks like DFCC,COMB,HNB. If you read the Chairmans comments they even mentioned about the March Tax benefits kicking in due course. So it should up their profits. In summary , in my opinion this is one of the most solid shares to hold in ones Long Term portfolio.If you like short term profits and miracles this is not the share though. However for shot term also note that DFCC is extremely over sold now and it would bring short term profit with a run. DFCC is now trading in august/september prices as in much before the bonus)."

AFter thhis note I saw they declared a hefty dividend it went up and now it down to the lowest I have seen with the last 7-8 months

+ rep from me. Please let me know whats the best shorterm share in BFI? Thanks

Carolis wrote:
Please let me know whats the best shorterm share in BFI? Thanks

No sure abotu short term but I find ,
SAMP,NTB,MBSL and NDB the other picks in Banking

slstock wrote:

Light of Hope wrote:DFCC has fallen to 168 after giving a good devident. Has anyone done a analysis on this? what is the fair value of this stock? What does the future hold for DFCC? thanks experts for the guidance and help given to us always.

If you are a long term invesotr DFCC is attractive and a solid blue chip.

Here are some note on this I made before

"DFCC: We should look at DFCC with a different mind set. This is a financial giant for decades. Any old , long term share holder ( I am not that old but am old haha) will know that. Though it not a share that will make you rich overnight like the gambling ones, DFCC has always looked after its share holders in the long term. Just look who is in the top 20 share holder list and decide. Period. Remember this is one of the oldest and highly regarded financial institutions in the country. A Blue Chip with much regard due to it strength and management. Banks like this should/would trade with a premium due to its place in the sector. (Like JKH,SPEN is doing in their sector). DFCC showed a good improvement last december in results. We should not expect massive differences in gain for more established large cap banks like DFCC,COMB,HNB. If you read the Chairmans comments they even mentioned about the March Tax benefits kicking in due course. So it should up their profits. In summary , in my opinion this is one of the most solid shares to hold in ones Long Term portfolio.If you like short term profits and miracles this is not the share though. However for shot term also note that DFCC is extremely over sold now and it would bring short term profit with a run. DFCC is now trading in august/september prices as in much before the bonus)."

AFter thhis note I saw they declared a hefty dividend it went up and now it down to the lowest I have seen with the last 7-8 months

A 'thanks' from me. It has shown improvement today. Do you have any treads of discussions regarding DFCC

For me SAMP, NTB, DFCC and NDB are good picks in Banking on the basis of low P/Es, PBV
and attractive growth prospects over the next 12 months.
SAMP & DFCC have done really well in Q1/2011 as per the released reports.. Other banks could also see the trend continuing..

Hi, smallville.
Do you have the link to DFCC Bank's report for Q1/2011?
It's not yet uploaded on the CSE website...

smallville wrote:For me SAMP, NTB, DFCC and NDB are good picks in Banking on the basis of low P/Es, PBV
and attractive growth prospects over the next 12 months.
SAMP & DFCC have done really well in Q1/2011 as per the released reports.. Other banks could also see the trend continuing..

Hi smallville

when u see the top 20 shares list of SAMP, CINV and GUAR bought about 1,202,084 ,804,900 shares in the 1st quarter. I think this price would be fair us to enter for long-term holding.. However my only concern is, reporting net profit for the quarter is 980Mn out of that 858Mn represents for other income including 403Mn from Fees and commission ( related to bank operation) balance might be the mark to mark adjustment and capital gain or other adjustments. Hence only 500Mn resulting from the operational profit, based on that share price trading at PE 21...

How do u look the current price based on this scenario....

appreciate ur comments

Antonym wrote:Hi, smallville.
Do you have the link to DFCC Bank's report for Q1/2011?
It's not yet uploaded on the CSE website...

Now where did i find this link?? I viewed the report 1-2hrs back but its not in the site now..It was posted on FB or here just i clicked on the link cannot find it now..

seyon wrote:

smallville wrote:For me SAMP, NTB, DFCC and NDB are good picks in Banking on the basis of low P/Es, PBV
and attractive growth prospects over the next 12 months.
SAMP & DFCC have done really well in Q1/2011 as per the released reports.. Other banks could also see the trend continuing..

Hi smallville

when u see the top 20 shares list of SAMP, CINV and GUAR bought about 1,202,084 ,804,900 shares in the 1st quarter. I think this price would be fair us to enter for long-term holding.. However my only concern is, reporting net profit for the quarter is 980Mn out of that 858Mn represents for other income including 403Mn from Fees and commission ( related to bank operation) balance might be the mark to mark adjustment and capital gain or other adjustments. Hence only 500Mn resulting from the operational profit, based on that share price trading at PE 21...

How do u look the current price based on this scenario....

appreciate ur comments

Cannot find the price unattractive to enter now.. before the div announcement this was trading above 180 and 170 now means a good value again.. Yes a long term counter due to the different nature of banking not like COMB, SAMP and others

smallville wrote:

Antonym wrote:Hi, smallville.
Do you have the link to DFCC Bank's report for Q1/2011?
It's not yet uploaded on the CSE website...

Now where did i find this link?? I viewed the report 1-2hrs back but its not in the site now..It was posted on FB or here just i clicked on the link cannot find it now..

@smallville

What do you think about the banking sector response to finacial reports. Please give your opnion.

ShareShares wrote:

smallville wrote:

Antonym wrote:Hi, smallville.
Do you have the link to DFCC Bank's report for Q1/2011?
It's not yet uploaded on the CSE website...

Now where did i find this link?? I viewed the report 1-2hrs back but its not in the site now..It was posted on FB or here just i clicked on the link cannot find it now..

@smallville

What do you think about the banking sector response to finacial reports. Please give your opnion.

Market behavious is hilarious.. I saw SAMP going up and ending the day bleeding.. with this good results thats the respose we saw.. However that even can be the start of a new base.. but thats bad..
There's no potential shown in market of appreciation of good revenue.. COMB only closed green while MBSL, DFCC, SEYB were losers in share prices..
Its just the lack of interest in retailers I think.. mostly big boys even could buylittle by little this fallen times.. Crossings happen but market stays bearish..
I think in coming weeks could see a good response to these, still the timing is not good..

pls add your valuble thoughts regarding DFCC. I have 5000 shares at 190 average & now it's around 157. this has been decline after there bonus issue .
pls advise will this be furthre going down or worth to holding another few months

Better if you an hold on. Definitely you will get a chance to sell in next Feb-Mar time period. May be even before as there are some strategic mergers in banking sector to take place.

good baking sector share. This can move up along with SAMP next week.

stock-student wrote:pls add your valuble thoughts regarding DFCC.
I have 5000 shares at 190 average & now it's around 157.
this has been decline after there bonus issue .

pls advise will this be furthre going down or worth to holding another few months

This year DFCC has declared a dividend of Rs. 10/-. There has been a shrinkage of their loan book last year but the bottom line was not affected due to hefty capital gain by COM Bank stake. Still they are sitting on a pile of cash which will be used in the days to come for the betterment of the Bank.

In the discussion "Prince" suggested a merger, however, it is very unlikely that DFCC and DFCC Vardhana Bank (DVB) merged together in next three to five years (or forever). CBSL approved the acquisition of 100% stake in DVB and DFCC already owns 98%+ of DVB. Apart form that DFCC in the only surviving development financing institution in the country and that will act as the showpiece for government/CBSL to attract low cost credit from multilateral agencies/banks such as ADB/EIB/JBIC/IBRD/FMO/KFW etc...So the merger is highly unlikely in medium term.

Now the share is trading at 52 week low, in case you have some more money to invest it is always better to buy some and bring the average down.

Facts to consider...
1. The expansion in the economy, this is common to all banks but DFCC has its specialization in project finance.
2. Exclusive availability of low cost funds. (You may have seen the recent newspaper add on EIB credit line)
3. Growth of DVB (In early 2000s it was the failed Merc Bank from Mr Moragoda. Now it is a fast growing bank with over 100 service points) and the synergy of two banks.
4. Growth of Acuity Partners (50% owned by DFCC)
5. Income of the associates (LVL, Namal & Lindel)
6. Strategic investment in COMbank.

These are the facts that I would consider before jumping into the water. Think and decide I am already in the water and my average is at the deep bottom.

thank you all for valuble sharing

stock-student wrote:pls add your valuble thoughts regarding DFCC. I have 5000 shares at 190 average & now it's around 157. this has been decline after there bonus issue .
pls advise will this be furthre going down or worth to holding another few months

then you received 50,000/= Dividend payout, aren't you? if i'm you forget it and do my stuff, then 1~2 year later check the account.

DFCC vardhana might go for a listing in near future, which will further increase capital inflow of the group

RockStock wrote:DFCC vardhana might go for a listing in near future, which will further increase capital inflow of the group

Very Unlikely (Literally No) in medium term.

Based on...
1. There is no necessity to raise further funds to meet capital adequacy ratios by DVB. They are on target.
2. DFCC had pumped money to in the recent past to increase the ratio.
3. CBSL's approval to acquire 100%

Most of the banking stocks at low... collect for long term

COMB, SAMP and HNB among some of the best performing stocks today….. New trend seem to be on fundamentally strong stocks.

widanage wrote:

stock-student wrote:pls add your valuble thoughts regarding DFCC.
I have 5000 shares at 190 average & now it's around 157.
this has been decline after there bonus issue .

pls advise will this be furthre going down or worth to holding another few months

This year DFCC has declared a dividend of Rs. 10/-. There has been a shrinkage of their loan book last year but the bottom line was not affected due to hefty capital gain by COM Bank stake. Still they are sitting on a pile of cash which will be used in the days to come for the betterment of the Bank.

In the discussion "Prince" suggested a merger, however, it is very unlikely that DFCC and DFCC Vardhana Bank (DVB) merged together in next three to five years (or forever). CBSL approved the acquisition of 100% stake in DVB and DFCC already owns 98%+ of DVB. Apart form that DFCC in the only surviving development financing institution in the country and that will act as the showpiece for government/CBSL to attract low cost credit from multilateral agencies/banks such as ADB/EIB/JBIC/IBRD/FMO/KFW etc...So the merger is highly unlikely in medium term.

Now the share is trading at 52 week low, in case you have some more money to invest it is always better to buy some and bring the average down.

Facts to consider...
1. The expansion in the economy, this is common to all banks but DFCC has its specialization in project finance.
2. Exclusive availability of low cost funds. (You may have seen the recent newspaper add on EIB credit line)
3. Growth of DVB (In early 2000s it was the failed Merc Bank from Mr Moragoda. Now it is a fast growing bank with over 100 service points) and the synergy of two banks.
4. Growth of Acuity Partners (50% owned by DFCC)
5. Income of the associates (LVL, Namal & Lindel)
6. Strategic investment in COMbank.

These are the facts that I would consider before jumping into the water. Think and decide I am already in the water and my average is at the deep bottom.

MPI is up, good for this sector.

Hi All,

Im quite new to this forum.

Im expecting an opinion from all the experts here with regard to the future of the DFCC.

What could be the maximum level it can go up before the proposed merger with the NDB take place.

Thanks in advance

Dear Novicer... Welcome on Board