LOLC Holdings

Hello forum what are you doing with this stock.

No one has written anything on this stock even after the announcement of divestment.

I am really surprised why no one bothered to talk about this stock which has moved from 113 to 194 this month.

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LOLC current NAV is 180 and the share price soars to the same level within the space of few weeks. Also LOLC has been the pulling factor for CSE in the last few days if not the ASPI would have been down to 6050 level by now.

So anyone has any views on this stock and whether the current price has value for investors please share.

On this news share price reached 194 and came down to 177.

What u think?

I can see some selling pressure after a huge buying pressure which is natural. Anyway the future price depends on how the proposed deal going to impact the key valuation parameters such as NAV & sustainable EPS. For the moment the proposed deal can have a significant impact on the stock's NAV and company's cashflow position.

My gut feeling is that around 165-170 range is a reasonable one to establish new positions.

I also entered .. lets see

The Invisible wrote:My gut feeling is that around 165-170 range is a reasonable one to establish new positions.

Today came to 165, will it go down further ?

Yes. It will ... next will be 150...

Today some buying above 170

New comers better to avoid jumping at the top. Be caution at this stage.

LSE wrote:New comers better to avoid jumping at the top. Be caution at this stage.

Can you enlighten us with next support resistance values like you do AEL.

*Korea’s Kookmin Bank to buy stake in LOLC Sri Lanka’s PRASAC for US$603mn; Based on revised estimates, capital gain for LOLC could be c. LKR 121/share*



According to the Korea Herald newspaper, Korea’s Kookmin Bank will buy a 70% stake in PRASAC Microfinance, a unit of Sri Lanka’s LOLC, for USD 603mn, a report said.



Based on available public information, LOLC Holdings has a 70% effective holding in PRASAC International (through LOLC International Singapore) whilst CAL’s estimates indicate that net assets of PRASAC Cambodia would be close to c.USD 407mn.



Hence, the capital gain from the transaction attributable to LOLC Holdings would be LKR 57.6bn (USD 318mn) translating into a per share gain of LKR 121/share. Consequent to the transaction, the NAVPS of LOLC would be close to LKR 310/share.

So once foreign selling dried up, will move ahead to 225+ and their future plans are widely support the price movement. Last financials they had the benefit from bil capital gain,.

Thanks Herath

Herath wrote:*Korea’s Kookmin Bank to buy stake in LOLC Sri Lanka’s PRASAC for US$603mn; Based on revised estimates, capital gain for LOLC could be c. LKR 121/share*



Based on available public information, LOLC Holdings has a 70% effective holding in PRASAC International (through LOLC International Singapore) whilst CAL’s estimates indicate that net assets of PRASAC Cambodia would be close to c.USD 407mn.



Hence, the capital gain from the transaction attributable to LOLC Holdings would be LKR 57.6bn (USD 318mn) translating into a per share gain of LKR 121/share. Consequent to the transaction, the NAVPS of LOLC would be close to LKR 310/share.

Are these your calculations or you got from somewhere?

Calculation has been done by CAL.

Herath wrote:Calculation has been done by CAL.

Latest Book value per share at company level is 109/- if 120/- per share gain is added it is only 229/-

Request members to be cautious on 310/- value

Based on their interim report NAV is 179 (Group NAv as of sep 2019)+ 121 (Capital Gain)+ current quarter EPS (around 10/=). So 310/= will be the NAV of the group. [You must be registered and logged in to see this image.]

Herath wrote:Based on their interim report NAV is 179 (Group NAv as of sep 2019)+ 121 (Capital Gain)+ current quarter EPS (around 10/=). So 310/= will be the NAV of the group. [You must be registered and logged in to see this image.]

Capital gain will be on company level. Not group level.

Admin wrote:

Herath wrote:Based on their interim report NAV is 179 (Group NAv as of sep 2019)+ 121 (Capital Gain)+ current quarter EPS (around 10/=). So 310/= will be the NAV of the group. [You must be registered and logged in to see this image.]

Capital gain will be on company level. Not group level.

Admin Company means LOLC internatiol da?
So what is the gain at Group level.
What we should focus on is Group levels effect.
179 + what ever the gain in Group level.
Shouldn't we?

This capital gain will be reflected at group level.

serene wrote:

Admin Company means LOLC internatiol da?
So what is the gain at Group level.
What we should focus on  is Group levels effect.
  179 + what ever the gain in Group level.
                                 Shouldn't we?

I wish someone will explain better. I hope to do only Admin/moderator duties.

You can consider either group or company depending on how you want to look. A member discussed similar event for COLO.

LOLC Holdings invested in Prasac though LOLC International. That investment is has a carrying value. This investment is sold. Capital gain is on this investment by the company (holding company). Group Book value won't go up by company level capital gain. Anyone please correct if I am wrong.

LOLC jumps to sixth slot in value on CSE
Comments / 185 Views / Monday, 6 January 2020 01:07

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Sharp rise in share price propels financial services-rich conglomerate above Cold Stores, HNB, Nestlé, Sampath Bank and SLT
LOLC Holdings PLC has jumped to sixth place in terms of value on the Colombo stock market, following sharp gains of its share price in past two weeks.

With Rs. 80.92 billion in market capitalisation, LOLC Holdings has overtaken Cold Stores, HNB, Nestlé, Sampath Bank and Sri Lanka Telecom in market rankings.

It is yet behind Distilleries, the value of which is Rs. 82.8 billion. With DIST slipping in its price last week, most analysts expect LOLC Holdings to rise further this week.

With much speculation on its true value, LOLC has however a long way to go to knock down the big guns, i.e. the number one blue chip JKH, at Rs. 216.3 billion, and second-ranked Ceylon Tobacco (CTC), at Rs. 205.1 billion. Apart from DIST, Commercial Bank, which is ranked fourth with Rs. 91.3 billion, and Dialog, at Rs. 104.2 billion, are other stocks ranked above LOLC Holdings.

A fortnight ago, the 52-week highest share price of LOLC was Rs. 133.90. As at end November 2019, with shares at Rs. 117.50, LOLC Holdings’ market capitalisation was Rs. 55.8 billion, and last week’s closing reflects an increase of Rs. 25 billion.

Given the impending Rs. 108 billion deal on the sale of a controlling stake in a subsidiary—Cambodia’s number one micro finance company (PRASAC)—to a Korean giant, investors have taken early value and trading positions on LOLC Holdings boosting its share price. The market, however, is still waiting for full disclosure.

The rise began during the week ended 27 December 2019, with LOLC Holdings’ share price gaining by Rs. 19 or 15% to close at Rs. 145.70. It hit an intra-week high of Rs. 148.90. That week saw 1.07 million shares of LOLC change hands via 1,261 trades, generating Rs. 150.5 million turnover.

Last week, the share price peaked to its highest of Rs. 194.90, before settling at Rs. 170.30, still up by Rs. 24.60 or 17%. The week saw 4.25 million LOLC Holdings shares change hands via 6,576 for a Rs. 746.6 million turnover.

Over 80% shareholding of LOLC Holdings PLC is controlled by Deputy Chairman Ishara Nanayakkara and related parties. Its public float is 15%, held by 2,766 shareholders. As at 30 September 2019, the public float adjusted market capitalisation was Rs. 8.9 billion.

Driven partly by speculation, last week’s league of top five gainers percentage-wise was dominated by LOLC Group firms - Eden Hotel Lanka (15.6%), Browns Investments (15%) and Browns PLC (14.7%). LOLC Holdings accounted for 25% of the week’s turnover of Rs. 750 million, followed by 21% by Browns Investment. LOLC was mostly foreign selling, amounting to 1 million shares.

nuwanmja wrote:

LSE wrote:New comers better to avoid jumping at the top. Be caution at this stage.

Can you enlighten us with next support resistance values like you do AEL.

@nuwanmja

Following are the next support and resistance levels identified for LOLC

Be Caution Guys

Resistance Level 3 --->>> 191.40
Resistance Level 2 --->>> 182.10
Resistance Level 1 --->>> 170.50

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Support Level 1 --->>> 165.00
Support Level 2 --->>> 144.70
Support Level 3 --->>> 125.00