Thinking to apply for Central finance auction ? Checkout the company's progress

The 10.85 lakh units auction of Central Finance commenced from yesterday. These unclaimed shares includes 9,81,708.725 unit promoter and 1,04,230.35 unit ordinary shares. Any exisiting promoter can apply for promoter type, whereas general public can apply for ordinary type shares. So, is the share worth applying for ??? let's check the company's progess as of 3rd quarter of this fiscal year. 

As of 3rd quarter, Central Finance has earned a net profit of Rs 4.53 crores. The net profit was Rs 5.87 crores in the corresponding quarter of the previous fiscal year. This accounts for a significant fall of 22.80%. CFCL now has an annualized EPS of Rs 8.99

A massive growth is seen both in the interest income and interest expense of the company. The dominance of interest expense growth has resulted a decline in net interest income. This has dipped by 12.04% to Rs 8.58 crores. 

Staff expense rose significantly to Rs 2.43 crores from Rs 2.14 crores. The operating expense,however, was controlled as it decreased from 1.44 crores to Rs 1.41 crores.

Company’s operating profit has decreased noticably by 17.91% to Rs 6 crores.

Deposit has surged to Rs 2.87 arba, up from 2.61 arba last year showing a growth of 9.90%. Company's lending has increased by 10.34% to Rs 2.58 arba.

Central finance has a paid-up capital of Rs 67.22 crores and a reserve of 20.09 crores. The company had recently announced 8.5% bonus for shareholders. The finance company will meet the paid-up requirement after the capitalization of bonus and right shares. Central finance is a merged entity formed after the merger of Bhaktapur finance and Central finance at a swap ratio of 1:1. 

Positive Sides:      

• Balanced growth in deposit and lending
• CCD Ratio of 69.09%, indicating a room for lending. 
• 56.49% rise in reserve. 
• NPL as low as 0.89%
• Trading at a price equal to the book value.

Negative Sides:

• Company has more then adequate capital, indicating less chance for bonus shares.
• Significant fall in operating as well as net profit.  
• High Base rate and Cost of fund.
• Comparitively low per share earnings.

 

Key Indicators

Earning per Share : Rs 8.99

P/E Ratio                : 19.88 times

P/B Ratio                : 1 times

Networth                : Rs 129.90

NPL                        : 0.89%

CCD Ratio              : 69.09%

 

So, if you plan to apply for the auction, Checkout the details here:

http://nepsekhabar.com/newsdetail/central-finance-1085-lakh-unit-auction-commencing-from-today