ILFS investment Managers is only private equity fund manager which is listed and publicly traded.
It offers a highest tax free dividend yield of approx. 7% equivalent to FD returns at CMP of Rs 17.20
Financials
| 2016 | 2015 | 2014 | 2013 | 2012 | |
| Revenue(Crs) | 102.07 | 103.92 | 115.12 | 101.08 | 102.62 |
| Other Income | 5.02 | 11.55 | 6 | 2.13 | 1.66 |
| Total Income | 107.1 | 115.46 | 121.11 | 103.21 | 104.28 |
| Expenditure | -41.71 | -38.69 | -44.31 | -40.94 | -45.99 |
| Interest | -- | -- | -- | -- | -- |
| PBDT | 65.39 | 76.77 | 76.81 | 62.27 | 58.28 |
| Depreciation | -0.5 | -0.6 | -0.45 | -0.69 | -0.72 |
| PBT | 64.88 | 76.17 | 76.36 | 61.58 | 57.56 |
| Tax | -15.75 | -20.28 | -22.59 | -19.13 | -16.52 |
| Net Profit | 49.13 | 55.89 | 53.76 | 42.44 | 41.04 |
| Equity | 62.81 | 62.81 | 62.72 | 41.78 | 41.66 |
| EPS | 1.56 | 1.78 | 1.71 | 2.04 | 1.98 |
| CEPS | 1.58 | 1.8 | 1.73 | 2.06 | 2 |
| OPM % | 64.06 | 73.88 | 66.72 | 61.6 | 56.8 |
| NPM % | 48.14 | 53.79 | 46.7 | 41.99 | 40 |
| Dividend | 1.2 | 1.3 | 1.3 | 1.5 | 1.5 |
Company has been consistent in paying dividend for last 5 years in range of Rs1.2 to R1.5 every year.
It has already declared dividend 0f Rs1.20 for 15-16 and share is available cum dividend so in case long term investor buy now they get 2 dividends in next 14 months which would give them dividend returns of approx. 14-15% apart from that there is a good scope of appreciation with growth in economy .Considering even 10-15% appreciation in stock price stock can safely give returns of 30-40% including dividend yield.
It's a very safe buy for long term investor.
Happy investing
100% pledging of shares, is that risk factored in the recommendation. I am a novice investor and was always advised to stay away from pledged shares
ReplyDeleteDear Sandesh
ReplyDeleteI fully agree with you that is why stock price is so low with change in economic scenario companies with good promoters can easily turnaround and technically looking at this company stock has bottomed out at 12-13 level declaration of dividend and profitability is a positive sign.I am temped to buy looking at business model growth oppurtuniy and dividend yield for at least for 1 year .In case your belief and understanding don't allow you to take that rik you may always avoid it.I reserve my right to be wrong in picking the stock
Regards
Thanks for your views it helps. I am invested in Anjani Portland will give ILFS a miss
ReplyDeleteNo problem you must believe in youself and your decisions . Good luck
ReplyDeleteSir, while researching more on Anjani Portland I saw news in Google regarding family feud within the chettinad group which owns Anjani Portland..Did you come across this? How do these impact shareholders
ReplyDeleteMukesh,
ReplyDeleteILFS seems to have reported worst quarter results. Any updates you wish to post? (Increase/decrease exposure)