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Sri Lanka Equity Forum » Stock Market Talk » Sampath Bank PLC - A giant awakening

Sampath Bank PLC - A giant awakening

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1 Sampath Bank PLC - A giant awakening on Tue Aug 02, 2016 11:07 pm

EquityChamp

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Moderator
First topic message reminder :

Thought of talking a bit of this stock. It has recorded an EPS of 30.5 and 38.4 in FY 2014 & 2015 but traded around Rs230 - Rs240 most of the time. For some reason the earnings have not been properly reflected on the stock price may be due to subdued market conditions.

On the back of this the bank has recorded significant growth in revenue as well as profits in 1H of FY 2016. Based on my assumptions for 2H I worked out a forecast for the FY 2016 as follows.
 201420152016 F
NII  16,781   18,550      23,353
Net fee & commision income    4,259     5,417        6,296
Net operating income  22,606   26,742      32,555
Total operating expenses  12,180   13,962      15,978
PBT    7,247     9,790      12,719
PAT    5,268     6,628        9,388
EPS30.5538.44       53.04
Share price    236.0     248.0        243.8
NAV       179        204 267
This stock will report astonishing earnings growth in excess of 40% this year on the back of interest income growth of 26%.

In terms of valuations the stock is trading @ a forward PE of 4.6x @ todays CMP of 243.8. If just compare with the average PE and PBV ratios clocked by this stock for the last two years the share should adjust to at least Rs357/- in the coming months.

Therefore a clear appreciation potential by at least 40% is visible to me. My advise for you is not to sell your Sampath @ these levels but BUY it now for a two quarter period investment. Sampath will deliver you a great result.

Good luck


41 Re: Sampath Bank PLC - A giant awakening on Mon Nov 07, 2016 10:45 am

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Certainly Sampath bank growth continues smoothly even under toughest economic challenges which proves the standing posture of efficient management.
Profit earning share after few months.

42 Re: Sampath Bank PLC - A giant awakening on Mon Nov 07, 2016 1:49 pm

EquityChamp


Moderator
Sampath Bank is a AAA+ investment grade stock since a long time. In the mid term it should deliver at least 40% return.

43 Re: Sampath Bank PLC - A giant awakening on Thu Feb 16, 2017 7:59 pm

EquityChamp


Moderator
@EquityChamp wrote:Thought of talking a bit of this stock. It has recorded an EPS of 30.5 and 38.4 in FY 2014 & 2015 but traded around Rs230 - Rs240 most of the time. For some reason the earnings have not been properly reflected on the stock price may be due to subdued market conditions.

On the back of this the bank has recorded significant growth in revenue as well as profits in 1H of FY 2016. Based on my assumptions for 2H I worked out a forecast for the FY 2016 as follows.
 
 201420152016 F
NII  16,781  18,550     23,353
Net fee & commision income    4,259    5,417       6,296
Net operating income  22,606  26,742     32,555
Total operating expenses  12,180  13,962     15,978
PBT    7,247    9,790     12,719
PAT    5,268    6,628       9,388
EPS30.5538.44       53.04
Share price    236.0    248.0       243.8
NAV       179       204267
This stock will report astonishing earnings growth in excess of 40% this year on the back of interest income growth of 26%.

In terms of valuations the stock is trading @ a forward PE of 4.6x @ todays CMP of 243.8. If just compare with the average PE and PBV ratios clocked by this stock for the last two years the share should adjust to at least Rs357/- in the coming months.

Therefore a clear appreciation potential by at least 40% is visible to me. My advise for you is not to sell your Sampath @ these levels but BUY it now for a two quarter period investment. Sampath will deliver you a great result.

Good luck
A giant is truly awakening. My forecast of 9.4Bn is achieved. In fact they went on to earn 9.5Bn. Under the extreme difficult economic conditions this is a remarkable achievement.

Plus they rewarded the shareholders with a significant combined dividend this month. I am expecting this stock to hit 300+ within this month itself. The charts confirms the bullishness of the stock to date.

44 Re: Sampath Bank PLC - A giant awakening on Fri Feb 17, 2017 6:17 am

glad


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Thanks to you all for the predictions and analysis

45 Re: Sampath Bank PLC - A giant awakening on Sun Apr 09, 2017 3:06 pm

EquityChamp


Moderator
Sampath bank is still not moved after the XD and scrip dividend. The ASPI however in a strong mission. keep Sampath in your mind that it is a stock with long overdue upward movement. Once people realize it then the burst will be like a volcano.

46 Re: Sampath Bank PLC - A giant awakening on Mon Apr 10, 2017 8:38 am

aathi


Stock Analytic
Stock Analytic
EC,

SAMP Good stock with huge value.

Is there any possibility of right announcement FROM SAMP like COMB & PABC?

47 Re: Sampath Bank PLC - A giant awakening on Mon Apr 10, 2017 9:53 am

EquityChamp

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Moderator
@aathi wrote:EC,

SAMP Good stock with huge value.

Is there any possibility of right announcement FROM SAMP like COMB & PABC?

That's some thing to think and analyse. Why PABC has gone for rights is to strengthen the tier a capital requirements under new laws. Commercial bank has no shortfall but they went for rights to increase the capital base to support the expansion. Sometimes if Sampath felt the same need then they might as well go for the same.

48 Re: Sampath Bank PLC - A giant awakening on Wed May 24, 2017 11:07 am

EquityChamp

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Moderator
Sampath Bank has got good foreign attention as well. From 280 to 290 it went up with good foreign support. The value of it still remains intact.

49 Re: Sampath Bank PLC - A giant awakening on Wed May 24, 2017 11:17 am

DS Wijesinghe


Manager - Equity Analytics
Manager - Equity Analytics
My prediction is that Sampath Bank will appreciate to 325/- within the next 3 month period. A great and a wonderful business to be owned by bank savvy investors

50 Re: Sampath Bank PLC - A giant awakening on Wed May 24, 2017 11:20 am

EquityChamp

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Moderator
It has more value than anybody thinking of it. PE just below 5x. Amazing earnings growth.

51 Re: Sampath Bank PLC - A giant awakening on Wed May 24, 2017 11:28 am

DS Wijesinghe


Manager - Equity Analytics
Manager - Equity Analytics
I agree with Equity Champ. It is tremendously undervalued in price right now. Apart from Sampaths attractive earnings and Big EPS, the NAVP is over Rs. 280/- even after the scrip dividend. It is one of the few stocks which appreciated against an overall declining market. This share should take off any moment and the upward trend seen now could be an indication of what is to come in the next few months

52 Re: Sampath Bank PLC - A giant awakening on Wed May 24, 2017 11:31 am

EquityChamp

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Moderator
The other stock of same caliber is HNB. Appreciated every year despite ASPI pull backs.

53 Re: Sampath Bank PLC - A giant awakening on Tue May 30, 2017 7:55 am

EquityChamp

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Moderator
So Sampath has broken all the resistance at 270 and 280 and now sitting on 290. It is finding its true potential progressively but slowly. Great asset to own by patient investors.

54 Re: Sampath Bank PLC - A giant awakening on Thu Jun 01, 2017 3:33 pm

DS Wijesinghe


Manager - Equity Analytics
Manager - Equity Analytics
Today it touched the all important psychological bar of 300/- and this should pave the way for a quantum leap within the next 2 months

55 Re: Sampath Bank PLC - A giant awakening on Thu Jun 01, 2017 4:33 pm

EquityChamp

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Moderator
That is a target I am eying for a long time. cheers

56 Re: Sampath Bank PLC - A giant awakening on Thu Jun 01, 2017 5:54 pm

nirowat


Manager - Equity Analytics
Manager - Equity Analytics
Was for quite a while sure that this will break 300 but was slow to collect to satisfy my greed
Should've put all in this when the Div and Script was around

57 Re: Sampath Bank PLC - A giant awakening on Thu Jun 01, 2017 7:16 pm

EquityChamp

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Moderator
Yes. I showed this value to all before a long time ago.

58 Re: Sampath Bank PLC - A giant awakening on Thu Jun 01, 2017 7:36 pm

DS Wijesinghe


Manager - Equity Analytics
Manager - Equity Analytics
@EquityChamp wrote:Yes. I showed this value to all before a long time ago.

Yes EC your analysis was crystal clear to any average investor about the great potential of this stock. Still tremendously undervalued and not too late for the serious and patient investors

59 Re: Sampath Bank PLC - A giant awakening on Thu Jun 01, 2017 7:57 pm

EquityChamp

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Moderator
Why not. When you analyze the Q1 2017 result and estimate the result for 2017 and beyond then you will realize this is not a 300/- + stock but its a 400/- + stock. I can guarantee on that.
Plus a superb dividend track record as well. You never know some times a share split also possible.

60 Re: Sampath Bank PLC - A giant awakening on Fri Jun 02, 2017 6:40 am

DS Wijesinghe


Manager - Equity Analytics
Manager - Equity Analytics
Yes I am totally in agreement with you

61 Re: Sampath Bank PLC - A giant awakening on Fri Jun 02, 2017 7:16 am

Harry82

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Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Rs 350.00 sure

62 Re: Sampath Bank PLC - A giant awakening on Fri Jun 02, 2017 7:24 am

soileconomy

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Vice President - Equity Analytics
Vice President - Equity Analytics
Will there be a rights issue? I guess so

63 Re: Sampath Bank PLC - A giant awakening on Sat Jun 03, 2017 9:04 pm

Teller

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Moderator
Good Prediction from EC and hope to stay this around 320/- levels for a while

64 Re: Sampath Bank PLC - A giant awakening on Sun Jun 04, 2017 7:53 am

EquityChamp

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Moderator
After that crossing @ 300/- the future price target is clear now.

65 Re: Sampath Bank PLC - A giant awakening on Sun Apr 08, 2018 10:00 pm

EquityChamp

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Moderator
@EquityChamp wrote:Sampath bank is still not moved after the XD and scrip dividend. The ASPI however in a strong mission. keep Sampath in your mind that it is a stock with long overdue upward movement. Once people realize it then the burst will be like a volcano.
So after one year time the volcano eruption is happening.  Basketball

66 Re: Sampath Bank PLC - A giant awakening on Mon Apr 09, 2018 2:29 pm

DS Wijesinghe


Manager - Equity Analytics
Manager - Equity Analytics
@EquityChamp wrote:
@EquityChamp wrote:Sampath bank is still not moved after the XD and scrip dividend. The ASPI however in a strong mission. keep Sampath in your mind that it is a stock with long overdue upward movement. Once people realize it then the burst will be like a volcano.
So after one year time the volcano eruption is happening.  Basketball

Yes it certainly did, due to it’s performance and definitely not due to any manipulation or undue speculation.

SAMP compounded annual growth rates (CAGR) for the last 5 years (2012 to 2017) for Income, Net Profit after tax, Earnings per Share, Net Asset value per share, Dividend per share are as follows

Income - 20%
NP - 19%
EPS - 15%
NAVPS - 15%
DPS - 7%

The past 5 year CAGR growth rates are excellent except for DPS which is below 10%

2017 Return On Equity (ROE) is also at an attractive rate of 23%

So all in all it is a share which had given a fair return to the shareholders during the last few years even under sluggish stock market conditions, when most stocks are reeling under.

67 Re: Sampath Bank PLC - A giant awakening on Tue Apr 10, 2018 11:18 am

DS Wijesinghe


Manager - Equity Analytics
Manager - Equity Analytics
If an investor bought Sampath Bank in 2012 @ the highest traded price @ 216/- and sold without taking rights in 2017 4Q @ the lowest traded price of 305/-, he or she woulld have earned a Compounded Annual Return of 11% after accounting for scrip and cash dividends. So even if he bought at the highest price and sold at the lowest price still would have earned a decent compounded annual return

Sampath traded lowest @ 184/- in 2012 and if the investor BOUGHT it @ a median price of 200/- and sold at 330/- (highest traded 352/20) without taking rights in 2017 4Q, would have earned a Compounded Annual Return of 15% after accounting for scrip and cash dividends over the years.

This level of growth becomes significant as 2012, 2013 we saw a struggling market and from 2015 we have seen a sluggish lackluster share market to date.

Ideally the investor with a further medium to long term view, would have taken rights @ 245/- and subsequent rights as well @250/- and take the 2018 scrip dividend.

p.s. some one pls do not hesitate to correct me if my workings are inaccurate.

68 Re: Sampath Bank PLC - A giant awakening on Tue Apr 10, 2018 3:34 pm

wiser

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Expert - Technical Analysis
Some People are there who have unrealized profit of 50%   Very Happy Very Happy Very Happy Very Happy

69 Re: Sampath Bank PLC - A giant awakening on Tue Apr 10, 2018 5:03 pm

EquityChamp

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Moderator
@wiser wrote:Some People are there who have unrealized profit of 50%   Very Happy Very Happy Very Happy Very Happy
Yes I can see you Very Happy Cool Basketball

70 Re: Sampath Bank PLC - A giant awakening on Wed Apr 11, 2018 7:11 am

EquityChamp

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Moderator
Sampath Bank has got billions of new cash from their last two rights issue.  Imagine how much money they can earn from it during the years to come. Certainly we can see exponential growth in earnings.

71 Re: Sampath Bank PLC - A giant awakening on Wed Apr 11, 2018 7:19 am

glad


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@EquityChamp wrote:Sampath Bank has got billions of new cash from their last two rights issue.  Imagine how much money they can earn from it during the years to come. Certainly we can see exponential growth in earnings.
Hope it won't be lining up some fraudster's pockets.
Some good companies have gone astray because of frauds and greed.

72 Re: Sampath Bank PLC - A giant awakening on Wed Apr 11, 2018 12:07 pm

wiser

avatar
Expert - Technical Analysis
@EquityChamp wrote:
@wiser wrote:Some People are there who have unrealized profit of 50%   Very Happy Very Happy Very Happy Very Happy
Yes I can see you Very Happy Cool Basketball
Very Happy Very Happy Very Happy Very Happy Laughing Laughing Laughing

73 Re: Sampath Bank PLC - A giant awakening on Wed Apr 11, 2018 12:38 pm

glad


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@wiser wrote:Some People are there who have unrealized profit of 50%   Very Happy Very Happy Very Happy Very Happy
What will be the cash dividends for this year?

74 Re: Sampath Bank PLC - A giant awakening on Wed Apr 11, 2018 5:31 pm

EquityChamp

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Moderator
Sampath Bank once again moving past 300/- mark. If it hit 310/- when the rights are allocated to individual shareholders then it can stay ahead 300/- even if rights holders sell out.

75 Re: Sampath Bank PLC - A giant awakening on Thu Apr 19, 2018 12:01 pm

Top Trader


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Any news on the allocation of right issue

76 Re: Sampath Bank PLC - A giant awakening on Sun Apr 22, 2018 1:52 pm

geeshanpradeep


Stock Trader
@Top Trader wrote:Any news on the allocation of right issue
Sampath Right Shares to be listed tomorrow..what will be the bottom trading price ...any expert idea?

77 Re: Sampath Bank PLC - A giant awakening on Mon Apr 23, 2018 5:58 am

Harry82

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Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Target price is Rs 350.00 within 3 months

78 Re: Sampath Bank PLC - A giant awakening on Mon Apr 23, 2018 9:09 am

Harry82

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Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sampath follows 2017 practice in allotting additional shares in 2018 rights issue
Applicants get up to 2,100 shares plus very small percentage of balance sought
April 21, 2018, 6:57 pm 

Sampath Bank’s rights issue of approx. 50.13 million shares allotted in the proportion of three for 13 shares held at a price of Rs. 250 per share has been fully subscribed with applications for additional shares comfortably absorbing the lag of unsubscribed shares.

"Refund cheques for additional share applications that could not be accommodated were sent out last week," a broker said. "Each applicant for additional shares was allotted up to a maximum of 2,100 shares and a very small percentage of the balance."

Analysts noted that with large applications for additional shares over and above entitlements coming in from many shareholders, the bank which followed the scheme of allotment utilized in the rights issue in November last year could not allot as many shares per applicant as last time.

"While up to 9,000 shares per applicant for additional were accommodated last time, this time it was possible only to allot up to a maximum of 2,100 shares plus a very small percentage of the balance," an analyst said.

Over and above the ceiling of 2,100 a small fraction of the balance sought was granted. "I got 36 shares on that account after applying for 10,000," one subscriber said.

"Given the gap between the issue price and the trading price, subscribers did very well," the analyst said.

The previous Rights Issue 2017 saw Sampath raising Rs. 7.6 billion new equity (zero cost capital) by the issue of approx. 31 million new shares, priced at Rs. 245 each, in the proportion of one new share for every six held.

This year’s rights issue saw the allotment of 50.13 million (approx) new shares issued at Rs. 250 a share on the proportion of three for 13 held to be listed on April 23.

Sampath also announced its scrip dividend dates to the CSE last week. The date of entitlement will be Apr. 26 and the share will trade XD from Apr. 27. The scrip dividend will be one new share for (approx) 19.728 shares held on April 26 trading XD from April 27.

The Sampath share traded above Rs. 300 on the CSE in recent days with Friday’s price ranging between Rs. 305.10 and Rs. 308.

79 Re: Sampath Bank PLC - A giant awakening on Mon Apr 23, 2018 6:55 pm

EquityChamp

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Moderator
No second words on Sampath Bank stock. Absolutely brilliant investment.

80 Re: Sampath Bank PLC - A giant awakening on Mon Apr 23, 2018 6:55 pm

EquityChamp

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Moderator
No second words on Sampath Bank stock. Absolutely brilliant investment.

81 Re: Sampath Bank PLC - A giant awakening on Tue Apr 24, 2018 7:33 pm

EquityChamp

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Moderator
Really putting giant strides forward.looks solid to reach 500 in two years time.

82 Re: Sampath Bank PLC - A giant awakening on Wed Apr 25, 2018 9:08 am

DS Wijesinghe


Manager - Equity Analytics
Manager - Equity Analytics
@EquityChamp wrote:No second words on Sampath Bank stock. Absolutely brilliant investment.
Absolutely. A fundamentally strong company which has given medium to long term investors an annual rate of return on their investment over and above Bank FD rates and it's share price has gone up and outperformed the performance of CSE ASPI by a big margin as explained below.
31/12/201731/12/2012ASPI 5 Year Annual Average
        Growth Rate
ASPI6369.265643        very poor 2.6%
Scenario 1
If I BOUGHT SAMP @ the highest share price of Rs. 216/00 in 4q 2012 and Decides Not to buy Rights and Sell @ Lowest price of Rs.  305/-in 4Q 2017 my investment would have earned a compounded annual rate of return of 11% during this 5 year period despite buying at the highest price and selling at the lowest price

Scenario 2
2. If I BOUGHT SAMP @ the average(median) share price of Rs. 200/50 in 4q 2012 and Decides Not to buy Rights and Sell @ Lowest price of Rs.  330/-in 4Q 2017 my investment would have earned a handsome compounded annual rate of return of 15% during this 5 year period. This is both buying and selling at average prices

Note:- Cash and scrip dividends have been accounted for

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