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People need Bonus shares and cash dividend, but the problem with government owned(partial) institutions mostly give cash dividends which is comparatively low rate return. If you pay 600 for NTC and it gives 50% dividend it is 8.33% only for the people, although it is good for staffs who purchase shares in Rs. 90 but people are loosing from NTC shares. Many many(I also meet some people who invested millions of ruppes behind NTC with expetations of good returns) people loosed their money behind NTC. With ADBL, case may be same if paid up capital requirement set by NRB for some years and "capital adaquacy ratio" also doesn't compells it to up it's "Paid up Capital". But it's good buy below 500.

And Thirdeye,
If people don't have trust over government why Nepal Bank Limited share price reached as high as to 1300 per share when NEPSE was around 400 level and Now after 900%+ right shares it's share price is at the level of 300. Ignoring the fact that this bank has negative net worth. Means you are purchasing debt investing your money, what a joke share maket is. So it's over the institution and it's strategy.

ADBL is govt bank. it is over staffed. political pressure will always be there to employ many neta's chelas. not sure what will happen to its fate. otherwise, it is a good bank.

Look at NTC, which is giving close to 50% dividend each year. but share price is around 650. why? investors are hesitant to believe in govt. owned business. a silly step of a political leader can sent these good businesses to perish. what happen to NBL, RBB? now its good news that NBL is being handed over to the private sector, which holds majority shares in the bank.

NTC's share was sold at 600 as IPO. despite high dividend, the share price lingering around 600 even after 5 years. why?

Bankure,

I hope you are aware that if company provisioning percentage is more than 5 % it can't give bonus, dividend and extend branch. Similarly there is cap in capital adequacy also..

There will be never a problem of capital adequacy with ADBL

And beleive me, if ADBL reduces its provision below 5%, NRB will allow dividend distribution and its share price will be more than 1000/- It takes time, but it will happen...And possible in Next fiscal year. If 140 share price can be doubled to 280 in a year, quite sure will be doubled to 560 next fiscal even if provision is moderate.

I will reactivate this thread next year and remind you all about it..

If such analysis is done with so called blue chip shares you can never justify with the market price and Earning per share. Market don't run book theories. It's only about people sentiment.
i.e. Everet Bank Share Price 1800
Return per share: if you say 92 or 83 any way 92/1800x100=5.11% 83/1800x100=4.61% which is far lower than inflation rate and less than many "A" class bank special saving accounts interest rates.

Dear Kiyosaki bro,

I will answer you after 3 months which will give you best return..

Sorry to say but ADBL ain't blue chip script. Blue script share as those of CHCL, EBL, SCB

Dear newuser,

ADBL share is for long term investor..

Thank you seedmoney ji, Very good insight on ADBL
It has the potential to be top 5 blue chip script.... And the number of shares traded is increasing day by day ....... Seems we can hold it for few months to get good return.
I also think this time NRB will allow it to distribute the dividend ....

Sorry Readers, I forgot to mention Chimmek Laghubitta whose share price is as whooping as 670

Les discuss about Relative study of ADBL Shareprice with NERUDE, DEPROX, (Based on nature of investment) and HBL, SBI, NIBL even with EBL (Based on size of Business)


The bank whose share was 213 (july 1 has reached to as high as 299 (Aug 1 in the span of 30 days yielding 40% growth in share price.

What is its relative price, lets make analysis.

The major loan of bank is concentrated to micro loans yielding good return and investment to sana kishan, RMDC and other microfinance whose share price is already in bluechip. Its EPS is as high as 58.55 and Net worth per share is 267.88, which is relatively similar to NERUDE and Deprox. If the share price of Nerude and deprox is as close as Rs 650, there is a great chance of reaching its price to 500 plus.

Similarly, if we make relative study to commercial bank, its EPS and Networth per share is comparable to HBL, SBI and NIBL. Definitely better than BOK. Though, EPS is less and number of listed share and PUC is high, its business size and Net profit is better than EBL. IF these bank share price ranges from 750-1750 than, why not ADBL share price to 500 plus.

Good thing about prudent investor: The share of ADBL is very market driven. Everyday there is more than 50 transactions in the stock market. Big investor cant drive its price and you need not to search buyer to dispose it. Its very salable and easily liquid-able.

But the drawback is The number of listed share price is very high so, if the share appreciate, the supply is more which caps its share price to reach 500 plus.


Risk in ADBL:
There is case of Previous year income tax settlement and and provisioning of loan.

Mitigation
The bank has additional provisioning of 2 Arba in addition to required as per NRB directive.
The bank's tax case is in Punarbedan adalat and based on information, there is greater chance of verdict in ADBL favour.

Opportunity
The bank has near about 6 arba non convertible preference share @ 6% which will never let the bank into capital adequacy crunch. Its low cost source of fund. That is why its EPS is more than Rs 58.

From my view its share is blue chip in present scenario. Its share price will crystalize once its reach 500 plus. The only thing is NRB should approve 40% dividend this year. And there is chance of letting dividend because of public pressure after IPO. It would be a first dividend by ADBL. and ADBL management will execute it.

Its present share price is 265.. Reader!! if you possess its share, qoute its price...