Any view on the next 3 upcoming IPO's in light with current correction?
1. Bandhan bank: The PB in this case is very high and a bit reluctant.
what about
2. Hind. Aeronautics and
3. Bharat Dynamics ?
Bhandhan Bank with asking price is at a
P/E of around 35 plus (on fully diluted equity post issue) looks good in comparison to its peers like Ujjivan Finance (PE 194), Equitas Holdings (PE 1173), AU Small Bank (PE 79).
On performance front, BBL has reported total income/net profits of Rs. 7.95 cr. / Rs. 0.60 cr. (FY15), Rs. 1731.25 cr. / Rs. 275.25 cr. (FY16) and Rs. 4320.12 cr. / Rs. 1111.95 cr. (FY17). For first nine months of the current fiscal ended on 31.12.17 it has earned net profit of Rs. 957.70 on total income of Rs. 3954.51 cr. For last three fiscals it has posted an average EPS of Rs. 6.21 and an average
RoNW of 15.27%. So Bandhan is growing FAST.
with this kind of growth, if continues ahead, its PE & PB ratio willcome down.
As on December 31, this fiscal (2017-18) gross NPA ratio was at 1.67 per cent. It is gradually coming down.
With
Capital adequacy ratio at 26.25 per cent BBL do not need any capital as of now but as per regulatory requirement, since it got Banking License in 2015 then within 3 years i.e., by 2018 it has to be publicly listed with at least 10% shares issued to public ...... hence this IPO ...... hence opportunity for Investors to invest.
Being in Micro Finance as well as Private Banking Space -
It currently offers a variety of asset and liability products and services designed for micro banking and general banking. Its asset products consist of retail loans including a substantial portfolio of micro loans, as well as micro, small and medium enterprise (“SME”) loans and small enterprise loans. As of December 31, 2017, 96.49% of its Gross Advances were in priority sector lending (“PSL”) compliant with the Reserve Bank of India (“RBI’s”) PSL requirements. As of December 31, 2017, BBL’s retail-to-total deposit ratio stood at 85.07%. As on the same date, bank’s deposits and Gross Advances (including IBPC/Assignment) stood at Rs. 25294 crore and Rs. 24364 crore respectively.
Its Peers are RBL Bank , Ujjivan Finance , Equitas Holdings , AU Small Bank. It is also considering Kotak Bank, Axis Bank, IndusInd Bank, Yes Bank.