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Assignment On Qualitative Fundamental Analysis of Various Companies

Submitted To . Abdullah Al Mamun Adjunct Faculty, Southeast University Submitted By Sree Krishna Saha ID:2010210005185 MBA (F), Southeast University, Banani, Dhaka .

Qualitative Fundamental Analysis of Following Companies

Dutch Bangla Bank Ltd. IDLC Finance Ltd. Beximco Pharmaceuticals Ltd. The Dacca Dying & Manufacturing Ltd. Grameenphone Ltd.

Introduction:
Market fundamentals are the mostly viewed tools through which an investor makes ones decision to invest or reinvest. But it has some techniques also to scrutiny through analytical ability. Market fundamentalism is the radical experiment that pushed deregulation much too far in the financial sector. To cure its excesses, one needs to rediscover the pragmatic, progressive values of the original deal. The term market fundamentalism, which has previously been used by Nobel Laureate economist Joseph Stiglitz(source: browsing), refers to an ideology that places an almost religious faith in the workings of the free market. The cornerstone of this philosophy is the efficient market hypothesis. This is the belief that the pursuit of private interest through unregulated markets is all we need to promote the public good, because markets inevitably create efficiency, growth and stability. The efficient market hypothesis has now proven to be a fallacy of market fundamentalism.

Fundamental Analysis of Five Stocks:

Fundamental analysis involves analyzing the characteristics of a company in order to estimate its value. Comparable performance: Company EPS EPS as per as per audited relevant sector financial (Dec-29, 2011) statement Source: 2010-11 Prothom Alo 10.01 (after FV Tk.10/-) 134.26 5.17 1.61 7.93 46.22 54.53 66.49 28.54 79.30 P/E Ratio (Dec-29 2011) 22.90 34.67 31.35 27.42 31.00 P/E Ratio as per relevant sector (Dec-29, 2011) Source: Prothom Alo 9.87 15.89 23.59 11.37 20.40

1. Dutch Bangla Bank Ltd. 2. IDLC Finance Ltd. 3. Beximco Pharma. Ltd. 4. The Dacca Dying & Mfg Ltd. 5. Grameenphone Ltd.

Fig: Comparable performance of EPS and P/E Ratio

NAV 2010-11 Company 1. Dutch Bangla Bank Ltd. 2. IDLC Finance Ltd. 3. Beximco Pharma. Ltd. 4. The Dacca Dying & Mfg Ltd. 5. Grameenphone Ltd. 35.01 61.50 76.14 14.42 35.57

Net Profit after Tax (Tk.Crore) 200.23 132.71 105.16 5.47 1070.53

% Dividend on 20102011 30.00 35, 65B 20B 12B 120

% Dividend Yield on 2010-2011 1.31 0.75 4.88

Fig: Comparable performance of NAV, NP, Dividend and Dividend Yield.

DSE General Index:

Index of Last 30 days from 13-12-2011 to 12-01-2012, 12.38 p.m Highest value: 5483.55043, Lowest value: 4968.78309 As per DSE General Index of last one month from 13-12-2011 to 12-01-2012, 12.38 p.m, it was fluctuating among 4968 to 5483 points and difference between two points 514.76734 points. The fluctuation of DSE General Index was huge influence among investors. A margin line should be set up by The Securities & Exchange Commission (SEC) that if index fall down roughly, it stop trading automatically. It is called Circuit breaker.

Circuit Breaker on 12 January 2012 of Five Companies:

Trade Code
DUTCHBANGL IDLC BXPHARMA DACCADYE

Breaker % 10.00 10.00 10.00 9.92 10.00

Tick Size 0.10 0.10 0.10 0.10 0.10

Base Price 91.70 55.30 154.80 176.50 135.10

Lower Limit 82.60 49.80 139.40 159.00 121.60

Upper Limit 100.80 60.80 170.20 194.00 148.60

GP

DSE-20 Index
Highest value: 4018.81396 Lowest value: 3741.58882 (Index of Last 30 days from 13-12-2011 to 12-01-2012, 12.38 p.m)
DSE 20 Share by Company Name on Jan 12, 2012 at 13:03:31

Trading Code

Ltp*

High

Low 211.0 132.0 119.1 591.0 603.1 196.0 90.9 42.6 183.5 52.3 141.0 58.8 69.5 43.2

CloseP * 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YCP 210.7 133.9 123.5 597.1 606.5 195.4 91.7 42.6 189 52.6 143.5 59.4 70.7 43.3

Chang Trad Volum Value(mn) e e e 0.30 -1.90 -4.40 -6.10 -3.40 0.60 -0.70 0.00 -5.00 -0.30 -2.30 -0.50 34 3 162 2 2 44 334 88 214 4600 800 25700 400 400 5100 89350 41700 29100 0.97 0.11 3.15 0.24 0.24 1.02 8.19 1.78 5.45 5.92 5.60 0.71 55.48 2.92

1 ACI 3 APEXTANRY 4 BATASHOE 5 BATBC 6 BDLAMPS 7 BXPHARMA 8 DHAKABANK 9 GQBALLPEN 10 ISLAMIBANK 11 12 MEGHNACE M MONNOCER A

211.0 212.0 119.1 125.0 591.0 591.0 603.1 604.0 196.0 203.9 91.0 42.6 52.3 92.9 43.3 53.1

2 AMCL(PRAN) 132.0 132.0

184.0 191.8

170 112200 175 79 39000 11950

141.2 146.2 58.9 69.5 43.2 60.5 71.9 43.8

13 NBL 14 PRIMEBANK

-1.20 1145 786500 -0.10 61 67250

15 SINGERBD 16 17 18 SOUTHEAST B SQUARETEX T

258.8 267.0 28.4 29.0

258.6 28.4 117.7 231.5 117.5

0.0 0.0 0.0 0.0 0.0

262.4 28.6 119.3 231.3 120.8

-3.60 -0.20 -1.60 0.20 -2.10

86

10750

2.80 5.11 3.96 15.49 3.41

189 179000 109 484 162 33400 66490 28450

117.7 121.9

SQURPHARM 231.5 235.0 A 118.7 124.3

19 UTTARAFIN

Share Index Performance Figure on 02 January 2012: (Source: DSE) Index Final Index Change Points Change % -6.70% DSE GENERAL 7,735.22 -555.2 INDEX (DGEN)
DSI INDEX DSE - 20 INDEX (DS20)

6,432.43 4,848.53

-445.24 -356.45

6.47% -6.85%

Dutch Bangla Bank Ltd:

The stock of Dutch Bangla Bank Ltd. price fluctuate of Tk.38.1 for the last 30 days means that in fourth and final quarter DBBL face many problems like reschedule of margin loan regular loan etc and also previous year dividend announcement of 30% cash may not be happy to investor despite its Corporate social responsibility activities of donating Tk.102 crore for students welfare. The financial performance of DBBL is not quiet accepting because its third quarter EPS is Tk.3.40 comprising with the last year EPS Tk.10.01 and P/E Ratio is 29.8 as per annualized third quarter EPS comprising with the last months P/E Ratio 22.9. It means stock overvalued against face value of approximately 30 times. But for the long term investor point of view DBBL perform better because of its reserve and surplus increase year by year.

The stock of IDLC Finance Ltd. price fluctuate of Tk.26 means that in fourth and final quarter it may arise some hope to gain high dividend against raising profit after Tax of Tk.33.60 crore in third quarter.

SEC cuts settlement time for investors- Traders will receive shares or money two days after trade SEC cuts settlement time for investors- Traders will receive shares or money two days after trade