How has Prabhu Bank Limited performed as a player in the stock market? Look at some key details
Mon, Aug 12, 2019 1:15 PM on Company Analysis, Exclusive, Featured,
Prabhu Bank Limited
Symbol: PRVU
Sector: Commercial Banks
No. of Outstanding shares: 88,926,750
Introduction
Prabhu Bank is a ‘A’ class commercial bank with its head office in Kathmandu. The growth of Prabhu Bank was phenomenal, especially after merger of Grand Bank Nepal Limited, Kist Bank Ltd, Prabhu Bikash Bank Ltd, Gaurishankar Development Bank Ltd and Zenith Finance Ltd, in 2016, attaining the status of “A” class financial institution licensed and regulated by the central bank of Nepal, Nepal Rastra Bank.
It is making an attempt to reach every geographical area and satisfy every segment of its customers with the networks of 189 branches, 24 Ext. Counters and 152 ATMs. At present it has more than 1,000,000 customer base.
Board of Directors
|
S.No. |
Names |
Positions |
|---|---|---|
|
1. |
Mr.Devi Prakash Battachan |
Chairman |
|
2. |
Mr. Pushpa Bahadur Pradhan |
Director |
|
3. |
Ms. Ambika Sharma Lamichhane |
Director |
|
4. |
Mr. Ramesh Singh Khadka |
Director |
|
5. |
Mr. Shankar Prasad Kalikot |
Director |
|
6. |
Ms. Anju Adhakari |
Director |
Source: Website of the bank
Management Team
|
S. No. |
Names |
Positions |
|---|---|---|
|
1. |
Mr. Ashok Sherchan |
Chief Executive Officer |
|
2. |
Mr. Maniram Pokharel |
Chief Business Officer |
|
3. |
Mr. Bam Dev Dahal |
Chief Project Officer |
|
4. |
Mr. Bhola Pathak |
Prabhu Capital- CEO |
|
5. |
Mr. Niraj Lamsal |
Chief Credit Officer |
|
6. |
Mr. Dinesh Thakali |
Chief Operating Officer |
Source: Website of the bank
Financial Highlights
|
Ratio |
Indicators |
FY2015/16 |
FY 2016/17 |
FY 2017/18 |
Q4 2018/19 |
|---|---|---|---|---|---|
|
Share capital |
NPR |
5,881,402,224 |
5,881,402,224 |
8,233,948,524 |
8,892,680,000 |
|
Reserve |
NPR |
552,439,414 |
2,402,884,439 |
3,410,720,204 |
3,878,366,000 |
|
Earnings Per Share |
NPR |
26.75 |
27.17 |
12.58 |
23.06 |
|
Price Earnings Ratio |
Ratio |
14.92 |
14.94 |
14.86 |
11.54 |
|
Dividend (Bonus) |
Percent |
- |
- |
8 |
- |
|
Cash Dividend |
Percent |
- |
- |
0.42 |
- |
|
Return on Total Assets |
Ratio |
1.64 |
1.76 |
0.86 |
1.53 |
|
Return on Equity |
Percent |
17 |
19.29 |
7.69 |
14.08 |
|
Net worth per share |
NPR |
109.39 |
140.86 |
152.66 |
163.8 |
Source: Annual and Quarterly Report of the bank
Facts and Figures
Key Indicators of PRVU (V/s Industry)
Source: SS Pro
Price History since FY 15/16 to 2019-08-07
Highest Trading Price: Rs. 460 (2017-04-23)
Lowest Trading Price: Rs.175 (2018-07-03)
Highest Closing Price: Rs. 442 (2017-04-23)
Lowest Closing Price: Rs. 176 (2018-07-03)
52-weeks High: Rs. 304
52-week Low: Rs. 177
Monthly Stock Outlook
Source: SS Pro
Based on its stock performance since 2015, (PRVU) Prabhu Bank Limited has closed higher in 100 % of Apr months. In terms of price change, it has gained the most (9.72 % on average) in Sep month.
Measurement of Investment Risk (VAR)
Measurement of Systematic Risk (Beta)
Source: SS PRO
It has shown an attractive double digit CAGR on various financial indicators like deposits, loans, net profit, and total assets during these five years. It has also become successful in decreasing its non-performing loan from 8.83 to 2.91 within these years.
During the fiscal year 2075/76, the bank has maintained the net profit of Rs.2.05 billion while it was Rs.96 million during the fiscal year 2074/75, an outstanding growth in net profit by 112.05%. Similarly, it ranked second among the top 25 traded commercial banks during the FY 2075/76 in terms of its turnover.
The Graham number 19.59 (less than 22.5) and PEG ratio 0.42 (less than 1) indicate that the stock of the company is undervalued. On the other hand, the core growth rate 28.32% is more than industry average. The data suggest that the company may provide good capital return to its investors in the future. Although, the company has shown strong financial during the FY 2075/76, it would be interesting to see how investors would perceive the stock of the company in the coming days.
