Hatton National Bank (HNB) - A Heavily Underrated Counter @ CSE

 HNB Ratio Analysis





Comments

Post a Comment

Popular posts from this blog

Plantation Sector Composite Analysis

Image
 Plantation sector companies demonstrated huge recovery in Q1 2021 compared to Q1 2020. Most of the companies have posted very good earnings during the quarter aided by favorable prices as well as depreciating Rupee. The sector has to face-up with several challenges including wage hike and chemical fertilizer shortages but still the profitability of Q2 2021 looks like very good. Therefore I believe investors still have good investment opportunities in the sector, at least in short-term, if they can pick the right stock. In this light I have compared 13 plantation stocks and ranked them based on financial and market parameters and ranked them in a rating scale of 1 to 13 where 1 being the best and 13 being the worse.  Below is the financial parameter summary for these 13 stocks based on Q1 2021 quarter report. Earnings based figures have been annualized to reflect the full year view.  Based on above I have ranked companies under each of the seven financial parameters and b...
Read more

Price to Book Value of Profitable Companies in CSE

Image
Introduction Net Asset Per share is the most straight forward absolute value that any investor can use as an arms length value to evaluate the current stock price. Theoretically NAV can be considered as the general fair value of a stock as it is an Absolute Value indicator. Therefore any stock which is trading above its NAV can be considered "Undervalue" or "Overvalue" otherwise. However there can be special cases where a current stock price can be far higher than the NAV due to reasons such as heavy continuous dividend payment, exceptional growth in earnings etc or current share price will be much lower than the NAV due to lack of earnings or negative perception on the industry in general. Identifiable good stocks based on PBV If carefully study the stocks classified under different sectors there are many stocks whose current share price is fairly lower than the current NAV. Following is the sector-wise PBV ratios of profitable companies based on the closing share ...
Read more

Composite Analysis of Diversified Conglomerates and Investment Ranking - Financial ratio analysis & Market ratio analysis

Image
Diversified Conglomerates in CSE have been classified under different fields therefore investors can't really compare each other to understand which carries the better value. I have conducted an analysis using financial ratios as well as market ratios to rank each diversified company on their merits using a rating scale of 1-10 where 1 being the best and 10 being the worse. Using this analysis I have ranked 10 diversified conglomerates listed in CSE and ranked accordingly. The financial ratios used in this analysis are;, a) Return on Equity (ROE) - Profit attributable to shareholders / Equity balance b) Quick ratio - (Current assets - inventory) / Current liabilities c) Debtor turnover days - Trade payable balance / Sales revenue x 365 d) Gearing ratio - Total interest bearing borrowings / (Total interest bearing borrowings + Equity) e) Interest cover - Operating profit / Net finance cost f) OCF per share - Net cash generated from operations / No of shares in issue The market ratio...
Read more