MBSL a good pick

Slstock · 1 MBSL a good pick Sat Jan 29, 2011 6:02 am

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13568
Reputation : 1158
Join date : 2011-01-22

MBSL has not been discussed much before. This is bank with a lot of potential.

Apart from the clear growth as seen below, they are handling IPOs, giving consultancy etc . Their future growth should continue as it is a state bank and with budget benefits.

If you take last 2 quarter EPS annualized which is a decent indication of their future performance ( if not more) : Share can be valued fairly at around 1.97*2*15 = 60 . Dec 10 quarter should give better results than Sept. March should be even better with budget benefits unless for unforeseen hiccup.

Sept 10 - 1.20
June 10 - 0.77
March 10 - 0.55

This might be very good medium to long term bet in Banks. MBSL was trading between Rs 55-60 in september.

Other than MBSL, NTB and SEYB has more growth potential than heavy weights.

Out of the higher valued large cap banks NDB and SAMP are the better picks. NDB is comparatively undervalued now. It was trading over Rs 400 in september. Samp much has been discussed about potential so I will not comment here.

You thoughts and comments welcome.

Last edited by Quibit on Sun Jan 30, 2011 6:28 pm; edited 1 time in total (Reason for editing : format condensed)

mono · 2 Re: MBSL a good pick Sat Jan 29, 2011 10:40 am

mono

Vice President - Equity Analytics

Posts : 1167
Equity Stars : 6486
Reputation : 93
Join date : 2011-01-21
Age : 103

MBSL has had problems with management. this might discourage some investors. But otherwise, it's a good business, with healthy growth.

econ · 3 Re: MBSL a good pick Sat Jan 29, 2011 12:09 pm

econ

Global Moderator

Posts : 1479
Equity Stars : 8619
Reputation : 94
Join date : 2011-01-27

what about PMB...
although past report shows loss making can bounc back with this quarter..
It is the merchant banking arm of peoples bank..
Mbsl is merchant banking arm of bank of ceylon.
both are capable of doing with new government business initiatives..
I heard that many government company IPOs are handled through MBSL and PMB.

Last edited by econ on Sat Jan 29, 2011 1:15 pm; edited 1 time in total

Slstock · 4 Re: MBSL a good pick Sat Jan 29, 2011 12:19 pm

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13568
Reputation : 1158
Join date : 2011-01-22

econ.
Yes, PMB is certainly a stock to watch out for. Only problem upto now is their financials have not proved it. The share went up and down on speculation. I had some shares of PMB which I got at Rs 25 then I sold for Rs 29 3 months ago. Now it hovering around Rs 28.

Maybe we can see the first signs of recovery to stardom in the coming report. lets watch. If they show potential it is a good stock to consider.

smalta · 5 Re: MBSL a good pick Wed Feb 02, 2011 3:18 pm

smalta

Senior Equity Analytic

Posts : 61
Equity Stars : 5103
Reputation : -12
Join date : 2011-01-26
Location : infinity

yes it is true that MBSL is suspended their CEO but it doesnt mean bank is bad or we should not buy

MBSL is managed by BOC so it has government protection to some far and the fact to consider is SEYB which is under MBSL s management doing better

and another thing as i can remember MBSL has consolidated its subsidiary last quarter so it will make some effect to NAVP

correct me if i am wrong

and slstock what is your idea regarding seyb.x and seyb.n?

dhamm · 6 Re: MBSL a good pick Thu Feb 03, 2011 9:00 am

dhamm

Manager - Equity Analytics

Posts : 147
Equity Stars : 5201
Reputation : -13
Join date : 2011-01-28

slstock wrote:MBSL has not been discussed much before. This is bank with a lot of potential.

Apart from the clear growth as seen below, they are handling IPOs, giving consultancy etc . Their future growth should continue as it is a state bank and with budget benefits.

If you take last 2 quarter EPS annualized which is a decent indication of their future performance ( if not more) : Share can be valued fairly at around 1.97*2*15 = 60 . Dec 10 quarter should give better results than Sept. March should be even better with budget benefits unless for unforeseen hiccup.

Sept 10 - 1.20
June 10 - 0.77
March 10 - 0.55

This might be very good medium to long term bet in Banks. MBSL was trading between Rs 55-60 in september.

Other than MBSL, NTB and SEYB has more growth potential than heavy weights.

Out of the higher valued large cap banks NDB and SAMP are the better picks. NDB is comparatively undervalued now. It was trading over Rs 400 in september. Samp much has been discussed about potential so I will not comment here.

You thoughts and comments welcome.

Thanks slstock for info.

I just checked the Sep Qrt results and it shows that Q3 results a significant drop in EPS from 1 .88 to 1.20 compared to same Qtr in 2009. Moreover, 9 months ended group EPS has gown down marginally from 2.61 to 2.51. Do you know what has happened?

Slstock · 7 Re: MBSL a good pick Fri Feb 04, 2011 12:14 pm

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13568
Reputation : 1158
Join date : 2011-01-22

dhamm wrote:

slstock wrote:MBSL has not been discussed much before. This is bank with a lot of potential.

Apart from the clear growth as seen below, they are handling IPOs, giving consultancy etc . Their future growth should continue as it is a state bank and with budget benefits.

If you take last 2 quarter EPS annualized which is a decent indication of their future performance ( if not more) : Share can be valued fairly at around 1.97*2*15 = 60 . Dec 10 quarter should give better results than Sept. March should be even better with budget benefits unless for unforeseen hiccup.

Sept 10 - 1.20
June 10 - 0.77
March 10 - 0.55

This might be very good medium to long term bet in Banks. MBSL was trading between Rs 55-60 in september.

Other than MBSL, NTB and SEYB has more growth potential than heavy weights.

Out of the higher valued large cap banks NDB and SAMP are the better picks. NDB is comparatively undervalued now. It was trading over Rs 400 in september. Samp much has been discussed about potential so I will not comment here.

You thoughts and comments welcome.

Thanks slstock for info.

I just checked the Sep Qrt results and it shows that Q3 results a significant drop in EPS from 1 .88 to 1.20 compared to same Qtr in 2009. Moreover, 9 months ended group EPS has gown down marginally from 2.61 to 2.51. Do you know what has happened?

Dhamm:

Sorry for the delay to reply. Have not figured an easy way to go back and reply to a post as the search function on the forum page is giving me errors. Not sure whether you'll are having the same issue.

Anyway regarding MBSL, they gave a 1 : 2 Rights issue sometime late in 2009. So the number of shares in the market increased by 50%. So the EPS will naturally get diluted. That should give you the reason to your query. I heard Chinwi or Greedy ( from investnow) say they got additional shares at the rights issue too and as you will see below ( I crossed check with the reports for you) 50% of additional shares were fully granted for sure as below.

90,000,000 shares at Sept 09.
135,000,000 shares after Dec 09 ( as of now).

Hope this clarifies

dhamm · 8 Re: MBSL a good pick Fri Feb 04, 2011 1:34 pm

dhamm

Manager - Equity Analytics

Posts : 147
Equity Stars : 5201
Reputation : -13
Join date : 2011-01-28

Thanks slstock for the info. yes, it clarifies my concerns. Smile

Regarding the searching, yes I also experience the same. Can not search. It gives me the following error.

"You haven't got the rights to access this page"

cheers..