ShareSansar Forum

Author	Post
BeatTheMarket	Reply #1 Thu Mar 06, 2014 7:21 pm
Member Registered: Mar 2014 Posts: 47	Post of TheDevil in Nepalsharemarket's Forum. Yeha upayukta lagyo. Take a case of SICL which is trading at 1155 at the moment which is believed by many to be overpriced. With EPS of last year being above 54, it's PE ratio is 22. However, considering that it has about 50% right shares and about 30-35% bonus share in the offering, combined with strong growth potential (12% in Q1 and 8% in Q2) and a strong position in the market. Even after ignoring the right shares and the growth potential, the fact that the current buyer gets the bonus share of at least 30% bonus shares means that the current PE ratio is 17. Compare it with Nabil Bank. With EPS of last year being above 91, it's PE ratio is 22 (MP of 2015). In addition, it has a weak growth potential (-20% in Q1 and -5% in Q2) despite the fact that is has a strong position in the market.
Sameer	Reply #2 Wed Mar 05, 2014 11:01 am
Member Registered: Aug 2013 Posts: 840	NLG ani Prudential aahile pani undervalue dekhincha compared to other insurance company share
young	Reply #3 Wed Mar 05, 2014 9:43 am
Member Registered: Jun 2013 Posts: 107	k rule layako ho ra nrb la tasto insurance ko lagi better huna...
dstock	Reply #4 Tue Mar 04, 2014 9:50 pm
Member Registered: Jun 2013 Posts: 101	But insurance already overpriced.
बिमलमान	Reply #5 Tue Mar 04, 2014 6:55 pm
Moderator Registered: Jun 2013 Posts: 3823	why not?
anoj_82	Reply #6 Tue Mar 04, 2014 9:41 am
Member Registered: Jan 2014 Posts: 18	Due to the NRB new rule now its better to buy insurance?need expert view « Last edit by बिमलमान on Tue Mar 04, 2014 6:57 pm. »

Author

Post

#1 Thu Mar 06, 2014 7:21 pm

Member

Registered: Mar 2014

Posts: 47

Post of TheDevil in Nepalsharemarket's Forum. Yeha upayukta lagyo.

Take a case of SICL which is trading at 1155 at the moment which is believed by many to be overpriced. With EPS of last year being above 54, it's PE ratio is 22. However, considering that it has about 50% right shares and about 30-35% bonus share in the offering, combined with strong growth potential (12% in Q1 and 8% in Q2) and a strong position in the market. Even after ignoring the right shares and the growth potential, the fact that the current buyer gets the bonus share of at least 30% bonus shares means that the current PE ratio is 17.

Compare it with Nabil Bank. With EPS of last year being above 91, it's PE ratio is 22 (MP of 2015). In addition, it has a weak growth potential (-20% in Q1 and -5% in Q2) despite the fact that is has a strong position in the market.

Sameer

#2 Wed Mar 05, 2014 11:01 am

Member

Registered: Aug 2013

Posts: 840

NLG ani Prudential aahile pani undervalue dekhincha compared to other insurance company share

young

#3 Wed Mar 05, 2014 9:43 am

Member

Registered: Jun 2013

Posts: 107

k rule layako ho ra nrb la tasto insurance ko lagi better huna...