BLI at a attracting price levels

BvsB wrote:

EquityChamp wrote:I have a different view. Even if BLI touched 60 today there is a possibility that it will come back to 55 again if the market continue its ride over the uncertainity line. The best example is the upmove of CIC couple of days back and then the back to basics scenario now. So the current context is the by a one day price movement you can't predict that a stock is to start the air plane ride howmuch profitable the company is.

But the best strategy is to select value stocks and start accumulationg little by little when ever the prices are low So that you won't be excited with this kind of short-term 'choons' as well as will not get trapped into high prices as well.

This is my advise and you all can think through.

With all due respect to EC, Please note BLI kind of a Stock which is not always having positive correlation with ASI/ Market. You can check that if you see the previous months/ year chart.

Also still we can not say (100%) that market is bottomed out (IMO -Maximum it can see 6800).
Since our market is semi strong form there are people who will collect BLI  at these  discount prices & expecting a huge uptrend once results release probably by 15th of January with Very Good December qtr results.

Also biggest positive point is this stock has traded heavily Rs 65 + price few weeks back.

IMO- Can see a uptrend in coming days/weeks.
GL

I can understand your perspective and there is nothing wrong in that as well because that is the normal human being. What I want to expresss is that the underperformances of value counters is still happening and that is common to BLI also. BLI is also a stock that will move with the market. Its current beta is 1.04 which means it is aggressive than the market. My advise is to select counters based on not their price movements but based on their future value. To understand that you have to look through for one-two years ahead from now. Then the current short term price fluctuations won't disturb your vision.
Thanks

Big collection is going on. Someone tried to collect from Rs.56-58 but he couldn't collect much. Now he is going up and trying to grab some shares. I clearly saw he is amending his big selling Qty from Rs.60 to 62 before he clears Rs. 60/-. It should touch Rs. 100/-

Guys RENU will be publish a much awaited announcement this month. All RENU shareholders be prepared to partying . This X'mas will be good for you all

Teller wrote:God gave you an another chance to become rich. Dont give up this opportunity pls

Guys for BLI   few rupees below may be  attractive. I cannot challenge it.
The problem is,  the  buyers should think about future earnings when investing in a share.
For me it is very difficult to  guess  what will happen  next year  in the financial arena due to current situation in the country.
Hence Im still going for hydropower.

When I post this BLI was around Rs 54 /- but now it is trading at Rs 60 /-.

BUT, After see BLI's recent growth, I still think that there is a room to appreciate for its share price..

Just see Bimputh's branch network & how quickly they are expanding their business all over the island.
http://www.bimputhfinance.com/branch_network-8.html

Sampath securities also valued BLI at Rs 75 /- as a fair value in their Pre-earnings report.

Slow & strong growth.Market is negative.BLI is positive.....

keeper wrote:Slow & strong growth.Market is negative.BLI is positive.....

It is not a slow growth dude 303 % growth of Interest income & 304% profit growth when compare with last year.

Hope you did not dispose your full holding of BLI...

karuna wrote:Sometime thomo raban gagaha yai

Karuna ,Any serious concern enter in to BLI tomorrow?

BvsB wrote:

karuna wrote:Sometime thomo raban gagaha yai

Karuna ,Any serious concern enter in to BLI tomorrow?

No bro u are lucky,

karuna wrote:

BvsB wrote:

karuna wrote:Sometime thomo raban gagaha yai

Karuna ,Any serious concern enter in to BLI tomorrow?

No bro u are lucky,

Will see tomorrow brother ?

BLI Post Earning Review-SC Securities

https://drive.google.com/file/d/0B4RW2iUTUYfZQXpGS3Y5cVNPQTQ/view


Bimputh Finance PLC – 2Q16 Earnings Review

In our 2Q16 Earnings preview release we have emphasized on this counter considering the earnings prospects for the second quarter which ended in September. We picked 
this counter primarily considering the lucrative micro finance lending carried out by the company. We envisaged growing micro finance lending to ensure steady revenue 
streams, increasing coverage, to ensure secure revenues from new markets, lucrative business model to facilitate further loan disbursements and cheaper sources of funding to stabilize better margins and profits.

As expected, Bimputh Finance PLC (BLI.N0000), reported healthy earnings and please find below the post earnings review and our findings on the company after our conversation with the company management.

Interest Income

Interest Income expanded by 303.0% yoy in 2Q16, to reach LKR533.8mn from LKR132.4mn in 2Q15. As expected, this was primarily due to the expansion of volume growth of micro finance lending to small scale entrepreneurs. According to the company disclosure, during 1H16, the loan book grew at 68.0% to reach LKR5.2b from LKR3.1b reported as at end of FY15. The management disclosed that there was an aggressive expansion in their branch and service centre network to reach 48, out of which more than 20 branches were established after 3Q15, when the financial sector consolidation plans were temporary halted by the government.

The finance company has outperformed our projection for it’s 2Q16 Interest Income, of LKR431.5mn, by 23.7%.

Interest Expenses

Interest Expenses also showcased a higher growth to that of Interest income, of 401.0% yoy to LKR144.1mn, The primary reason behind this as per the management is, the company has increased it’s exposure to borrowings where the interest bearing borrowings increased 80.1% to reach LKR4.7b from LKR2.6b reported as at end of FY15. 

Since, the loan to deposit ratio has expanded to 3.06x from 2.82x in 4Q15, due to a rapid growth in the loans and advances (which grew 68.0% within 1H16). BLI has managed to fund this gap with increased debt, which led to an increase in the interest expense. 

Net Interest Income

Net Interest Income increased by 276.0% yoy primarily due to the expansion of interest income during the past quarter. Our Net Interest Income forecast of LKR288.8mn is below cf. LKR389.7mn reported during 2Q16, by the company. Company has exceeded our expectations by c. 35.0%, demonstrating a stronger than expected growth during 2Q16.

Documentation fees and other charges on loans

Documentation fees and other charges on loans saw a notable increase of 227.0% yoy to reach LKR80.7mn from LKR24.6mn reported in 2Q15. This was mainly on the back of increased coverage through branch expansions and resultant increase in loans disbursed.

Other Income

During 2Q16, Other income of BLI considerably decreased by 93.0% yoy to reach LKR256,963 cf. LKR3.8mn reported during 2Q15. As per the management, this reduction is due to the termination of several road development projects, which led to a loss in interest income from the bank guarantees allowed for the workers of the projects, in collaboration with Sampath Bank PLC. 

Impairment losses on financial assets

During 2Q16, Impairment Charges for Loans and other losses showcased an increase of 73.0% to reach LKR14.6mn against LKR8.5mn recorded in 2Q15. According to the 
management, this was mainly due to an increase in the general provisioning due to the high risky nature of the micro financing lending. Our estimate for the 2Q16 impairment loss was LKR10.2mn.

Non Performing Advances (NPLs)

The reducing trend in the non performing advances of the company over the recent past is noteworthy. As at end of 2Q16, BLI’s Gross NPAs stood below 0.9%.

Personal Expenses 

Personal Expenses increased by 124.8% yoy to reach LKR36.8mn. This was mainly due to establishment of branches and the resulting salary and other related expenses. (48 branches & service centers were opened after January 2015.) 

Administration Expenses

During the last reported quarter, administration expenses increased by 130.0% yoy to reach LKR119.3mn cf. LKR51.7mn reported during 2Q15, mainly due to branch expansions. 

Financial Expenses

Financial expenses demonstrated a noteworthy increase of 1597.0% yoy to reach LKR64.9mn from LKR3.8mn recorded during 2Q15. This was primarily stemming from the interest bearing borrowings which increased 80.1% to reach LKR4.7b from LKR2.6b reported as at end of FY15,as highlighted above.

Share of Profit of associate company

A profit of LKR5.7mn was recorded as a result of the healthy performance of BLI’s associate – Sinhaputhra Finance PLC.

Profit After Tax 

Profit for 2Q16 saw a healthy improvement of 304.0% yoy to reach LKR176.8mn compared to LKR43.8mn reported for 2Q15. In our 2Q16 pre earnings release, our projections for the profit after tax stood at 139.0mn, which the company has been able exceed by 27.0%, demonstrating increased profit generating potential. 

Earnings Per Share

Earnings per share of the group demonstrated a satisfactory growth to reach LKR3.28 from LKR0.81 recorded as at end of 2Q15. We have forecasted a lower EPS of LKR2.6, 
resulting in a variance of 26.0% compared to the actual reported EPS.

Net Asset Value

Net Asset Value increased to LKR22.25 at the end of 2Q16 from LKR16.47 reported at the end of FY2015. 

Cash position

Cash and cash equivalents showcased a notable increase of 114.0% to reach LKR387.7mn, as at end of 2Q16, compared to LKR181.2mn reported as at end of FY15. 

Foreign Funding

Additionally, the management disclosed that currently, the company secures USD10mn worth of foreign funding. Further, since the maximum limit of foreign funding allowed 
for a Sri Lankan company stands at USD10mn, the company has requested for special approval from the Central Bank to increase the foreign funding limit above USD10mn, 

and currently is waiting for a response from the Central Bank, with a hope to secure more international funding going forward.

Outlook

We believe, the company can benefit from the lucrative micro financing lending going forward, given necessary improvements to it’s credit evaluation, approval and credit 
recovery processes.

Valuation

We indicated a one year price target of LKR151.0 a share in our Pre-earnings release on a relative basis. (Before the subdivision of shares of the company.) Currently, BLI.N is trading at LKR65.90 with a P/E multiple of 5.0 and a P/B multiple of 2.96x.

We understood BLI,s potential from begining and the most important thing which we baught it before others.
My BLI Target is a triple digit figure in a very short period.

Anyone selling @ 60/- let me know

A2Z wrote:Anyone selling @ 60/- let me know

State your phone number so that people can contact you. I think you will get lot of calls.

Only share holding its ground at 60. I predict this has to move above 120 very soon. Every day nice collection is going on at 60. I think I also want to grab some shares at these level

Teller wrote:We understood BLI,s potential from begining and the most important thing which we baught it before others.
My BLI Target is a  triple digit figure in a very short period.

Teller ,

Is it good to enter in to BLI at this price .

Thank You

Of course, BLI has a big news to publis with in 60 days. I am not talking about financial reports. Its an amazing news. No harmful to buy at these levels. Give your maximum attention to BLI. GL

Another speculation, another NEWS story.I don't know when people want to stop taking others for good rides.

No sellers today. SFL started to go Guys are you ready for BLI ??

EquityChamp wrote:Another speculation, another NEWS story.I don't know when people want to stop taking others for good rides.

Ane pala do yanna. Danne naththam kata wahan idapan. Meka yanawa Rs. 100/- walata. Balan idapan

Teller wrote:Of course, BLI has a big news to publis with in 60 days. I am not talking about financial reports. Its an amazing news.  No harmful to buy at these levels.  Give your maximum attention to BLI. GL

Thanks Lot Teller.

But If I want to grab a quantity I have to go up .Could you please advise a price range to collect since no major sellers now.

BLI last chance to buy

Don't tell lies my dear You can buy above Rs.70 Soon

fireshelter wrote: Don't tell lies my dear You can buy above Rs.70 Soon

Very True Fireshelter..


I also Felt the same..

GL BLI holders...

Seems like BLI started ...

BvsB wrote:

fireshelter wrote: Don't tell lies my dear You can buy above Rs.70 Soon

Very True Fireshelter..


I also Felt the same..

GL BLI holders...

Now at Rs 63 /- 

I recommend to BUY BLI at current levels and get a chance to reach 100% return.
This is a 3 digit worth share and no one can say "NO""
GL.