Expert please give me advice
Thanks
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sanjeevan217 wrote:CDB is the fifth largest NBFI in Sri Lanka in terms of balance sheet size accounting for roughly 5% of lease receivables in SL. We believe CDB operates in a profitable niche focusing on medium scaled businesses that are unable to access prime funding, without compromising on asset quality. CDB operates with a lower risk appetite in comparison to their peer group, which we see encouraging in the long run. CDB enjoys a strong deposit franchise despite having the liability of a volatile asset growth owing to the balance sheet growth mirroring the capex cycle. With resultant ROEs being on the prime end of the peer group, we value the share at 1.7x justified PBV. We initiate with a BUY on a 45% upside on the voting share and a 53% upside on the non voting share.
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