Total number of shares as at 06/30/2011: 363,000,132
Profits for the 6 months ending 31/12/2010: 624,910,000 EPS = 1.71
Profits for 6 months ending 06/30/2011: 218,115,000 EPS = 0.60 (the quarterly report says 0.77 but I don't know how they got it).
If you look at the two statements you can see that for the 6 months ending 31/12/2010, they have a 200Mil difference in "Other revenue" section (income statement). Let's be conservative and estimate an EPS of 0.60 for the next 6 months (ending 31/12/2011) - I suppose they'll publish this report soon.
So, our estimated EPS for the year ending 31/12/2011 is 1.2 per share. So, this share has a P/E around 10 for a price around 12 Rs.
The question is, is it a good P/E compared to other financial institutions / banks? analyse COMB.X, HNB.X, SAMP.N and see for yourself. Also compare dividends. A share can be "fundamental" (i.e not JUNK) but that doesn't mean its share price is always justified.
My personal opinion is JINS.N is an OK share for around 12 rupees (I already hold some quantity around 11.50 I think). But I can't say for sure that this share will not fall further (there are banks with much lower P/E values - this share "could" correct more - I don't know).
Their 2010 Year ending eps was 2.12. Usually for Insurance companies last quarter of the year earnings are higher than the previous quarters ( 6 Month up to June). I am not sure whether this year eps will drop as much as 1.2 . They already reported 0.77 eps for 2011 June . That means 6 month earning will be only Rs 0.43.
There is some investor sentiment issue due to owner family. CFVF and CSEC already had some issues . But JINS after an initial 2009 issue with the insurance board which was resolved quickly ( not a financial fraud) had so far been fraud free. I do not know whether there is any issue recently.
ANyway , jsut note the below facts
1) IPO price in 2008 was Rs 12. Now trading below IPO after 4 years!
2) I recall million of shares were traded when it ran over Rs 20.
3) In 2009 they paid RS 2 dividend. Afterward they have been paying RS 1 dividned. Dividend yield will be one of the highest at CSE for this share if they pay Rs 1 again and your share average is around Rs 12.
Last edited by slstock on Fri Feb 17, 2012 6:02 pm; edited 1 time in total