LB Finance - Impressive 1H results

EquityChamp · 1 LB Finance - Impressive 1H results Wed Oct 28, 2015 6:22 am

EquityChamp

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LB has reported more than 50% growth in PAT for first half of 2015/16. Revenue only gain by marginally but the growth in PAT is achieved by lower deposit rates compared to lending rates and remarkable reduction in impairment charges which is an indication of improving the quality of the asset base. 1H EPS stands @ 11.3.
So at the current price of 124 this share is trading @ a PE of 6x which means 50% discount to the sector. This share has a lot of potential to move up and even 200 is not a dream. GL.

Harry82 · 2 Re: LB Finance - Impressive 1H results Wed Oct 28, 2015 6:23 am

Harry82

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Wow my target also 200.00

malanp · 3 Re: LB Finance - Impressive 1H results Wed Oct 28, 2015 7:58 am

malanp

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LFIN second half profit is 15% higher than the first half, so we can predict the current year EPS will be Rs.24.70. (11.30+11.30*1.15)

It is a Diamond, even at 200 it is a bargain..

SLFINANCEWATCH · 4 Re: LB Finance - Impressive 1H results Wed Oct 28, 2015 8:33 am

SLFINANCEWATCH

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At malanp,
Can LFIN maintain this Cost of Funds in next 02 Quarters ?
Its my major concern..I think they are quoting much higher Fixed Deposit Rates nowadays.( 47 Bn Deposit Base )
Also can LFIN continue this Loan Portfolio growth in next few months ?
These are the main concerns, But LFIN is highly undervalued and this has a value around 200.00.

raider · 5 Re: LB Finance - Impressive 1H results Wed Oct 28, 2015 8:38 am

raider

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Point well made!

Cost of funds may rise temporarily and lending growth would be hampered given that leasing is now heavily challenged.

However, there could be a somewhat significant improvement in impairment and NPLs. We must watch out for this.

Also, gold prices are a must to watch in relation to LFIN as they are on the edge of a collapse. Deutsche analysts expect gold to fall as much as 30% in the near term.

SLFINANCEWATCH · 6 Re: LB Finance - Impressive 1H results Wed Oct 28, 2015 8:59 am

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Also would like to remind you that LFIN will get a Hit from Super gain tax..( 450 Mn + Tax Payment ).
Recommend you all to grab VFIN , SFIN, HDFC at this level, PABC also OK, Only concern is their Impairment Losses..

troy · 7 Re: LB Finance - Impressive 1H results Wed Oct 28, 2015 9:04 am

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SLFINANCEWATCH wrote:Also would like to remind you that LFIN will get a Hit from Super gain tax..( 450 Mn + Tax Payment ).
Recommend you all to grab VFIN , SFIN, HDFC at this level, PABC also OK, Only concern is their Impairment Losses..

you are on the money... very valid point. However, I should remind you for HDFC, even their NPA ratio is high, CBSL take care of it. CBSL annually settle EPF loan defaults.

raider · 8 Re: LB Finance - Impressive 1H results Wed Oct 28, 2015 9:07 am

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Investors have already factored in the possibility of SGT liabilities now.

SLFINANCEWATCH · 9 Re: LB Finance - Impressive 1H results Wed Oct 28, 2015 9:16 am

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HDFC - High NPL Ratio in past, but its reducing into the Industry level.( Now its almost OK )
Reasons - Salary Increments for Customer Base ( Most of the Customers are Govt Servants )
Also can expect a rapid growth in loan portfolio due to the above reason and from Leasing..