Sunday, February 05, 2006

PNB GILTS

Here's a "Wizard of Oz" opportunity.

Here are the business stats in the B/S of the company -
Equity - 135.01 crs
Loans - 790.6 crs
Investments - 5.37 crs
NCA - 1251.52 crs
LY dividend - 0.00 rupees
FV - 10 rupees per share
Profit for the year - negative 68.25 crs

This was last year. Now take a look at this year's numbers ....
Profit for Q1 - 16.53 crs
Profit for Q2 - 11.09 crs
Profit for Q3 - 12.12 crs
CMP - 22.35 rupees per share

Which means -
1. NCAV of PNBGIL is at 34.13 rupees (a true Grahamian stock !!!)
2. Estimated PAT for the year is 53 crs. So P/E at todays CMP should be 5.69.
3. Here's the clincher ... the cash inside the company is 16.69, so dont be surprised if the company awards a dividend of rupees 2 per share. That would blow your dividend yeild to 8.94%.

This is a classical case of an ignored stock. Since PNB Gilts is on the govt. securities and gilts market ... analysts have presumed that the proceedings will be shaky for this organisation.

Here's an news story on PNB Gilts : "... PNB Gilts, the primary dealer promoted by Punjab National Bank, is turning around after a difficult spell, thanks partially to its involvement in fee-based activities....". (and although news stories are something I show my backside to, this one is backed up with some solid data).

3 Comments:

Blogger Shankar said...

Update - The parent organisation Punjab National Bank has also, in a statement, mentioned the turnaround of PNB Gilts and slated that it's subsidary with contribute to good profits for the year.

2:56 PM  
Blogger Vishal Mittal said...

Hi Shankar,

keep on the good work...

Rgds

Vishal Mittal

6:33 PM  
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10:15 AM  

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