1) The document provides an investment analysis on BSRM Steels Limited, a Bangladeshi steel manufacturer. It recommends buying the stock with a 1-year target price of BDT 92.69, representing a 55% capital gain from the current price of BDT 59.80.
2) Valuation is determined using the FCFF, P/E multiple, and DDM models, with 50%, 30%, and 20% weight respectively. Key growth drivers include expanding production capacity and opening new factories in Bangladesh and abroad.
3) BSRM is a leading steel producer in Bangladesh and expects continued growth in demand driven by large infrastructure projects and economic expansion. However, the stock currently trades at a discount to
Here are the key points from the literature review:
- Current and quick ratios have improved over time but are still below optimal levels, indicating some liquidity issues.
- Receivables turnover and average collection period have fluctuated, showing some inefficiencies in receivables management.
- Inventory turnover has increased steadily, with days in inventory decreasing, showing improved management of inventory levels.
- Total assets turnover and operating assets turnover have increased over time, demonstrating improved revenue generation from existing assets.
- Operating margin, return on assets, and return on equity have fluctuated over the past 5 years, with some years performing better than others.
- Overall the literature indicates that while some financial ratios for B
The document analyzes the financial performance of BSRM Steels Limited over the last 3 years through ratio analysis. Key ratios such as current ratio, quick ratio, gross profit ratio, net profit ratio, return on capital employed, and stock turnover are calculated using data from the company's annual reports. The current and quick ratios show the company's liquidity position is satisfactory but not ideal. Gross and net profit ratios show an upward and downward trend over the years. Return on capital employed is highest in 2011 but lowest in 2012. Stock turnover saw a downward trend from 2011 to 2013. In conclusion, the company generally maintained a positive financial position but needs to focus on improving profitability ratios and capital efficiency.
The document summarizes an evaluative study of the financial structure of Bangladesh Steel Re-Rolling Mills Limited (BSRM). It analyzes BSRM's financing policies, capital structure using ratio analysis and common size statements, and identifies some problems with the current structure. The study finds that BSRM's capital structure relies heavily on debt relative to equity, it has high leverage and debt ratios, and poor working capital management. It provides recommendations for BSRM to select more effective financing instruments to optimize its capital structure.
this project is a view of compensation process in BEXIMCO following the core book Fundamentals of Human Resources Management by Stephen P. Robbins, David A. DeCenzo.
Financial Statement Analysis With The Help of Ratios (Suyesh Metel Pressing p...Avinash Labade
If any have Need Project Report please call +919011888598 and I will provide only Word File.
and
Project Cost is Rs 500/- Per Project
Send Me Payment Phone Pay or Google Pay
An Organisation study at ADITYA BIRLA ULTRATECH LTDRahul G
This document provides an overview of an organizational study conducted at Aditya Birla Ultratech Ltd. It discusses the objectives of the study which are to understand the organizational culture and structure, products and services offered, departmental functions, and how theoretical knowledge is applied practically. It also provides details about the Indian cement industry, including major players and their production capacities. The cement industry is an important core industry for India's growth and development.
Here is my report on PRAN-RFL group
// TEAM STARK //
- American International University Bangladesh -
Take Idea from this report but do not copy from this ...
Here are the key points from the literature review:
- Current and quick ratios have improved over time but are still below optimal levels, indicating some liquidity issues.
- Receivables turnover and average collection period have fluctuated, showing some inefficiencies in receivables management.
- Inventory turnover has increased steadily, with days in inventory decreasing, showing improved management of inventory levels.
- Total assets turnover and operating assets turnover have increased over time, demonstrating improved revenue generation from existing assets.
- Operating margin, return on assets, and return on equity have fluctuated over the past 5 years, with some years performing better than others.
- Overall the literature indicates that while some financial ratios for B
The document analyzes the financial performance of BSRM Steels Limited over the last 3 years through ratio analysis. Key ratios such as current ratio, quick ratio, gross profit ratio, net profit ratio, return on capital employed, and stock turnover are calculated using data from the company's annual reports. The current and quick ratios show the company's liquidity position is satisfactory but not ideal. Gross and net profit ratios show an upward and downward trend over the years. Return on capital employed is highest in 2011 but lowest in 2012. Stock turnover saw a downward trend from 2011 to 2013. In conclusion, the company generally maintained a positive financial position but needs to focus on improving profitability ratios and capital efficiency.
The document summarizes an evaluative study of the financial structure of Bangladesh Steel Re-Rolling Mills Limited (BSRM). It analyzes BSRM's financing policies, capital structure using ratio analysis and common size statements, and identifies some problems with the current structure. The study finds that BSRM's capital structure relies heavily on debt relative to equity, it has high leverage and debt ratios, and poor working capital management. It provides recommendations for BSRM to select more effective financing instruments to optimize its capital structure.
this project is a view of compensation process in BEXIMCO following the core book Fundamentals of Human Resources Management by Stephen P. Robbins, David A. DeCenzo.
Financial Statement Analysis With The Help of Ratios (Suyesh Metel Pressing p...Avinash Labade
If any have Need Project Report please call +919011888598 and I will provide only Word File.
and
Project Cost is Rs 500/- Per Project
Send Me Payment Phone Pay or Google Pay
An Organisation study at ADITYA BIRLA ULTRATECH LTDRahul G
This document provides an overview of an organizational study conducted at Aditya Birla Ultratech Ltd. It discusses the objectives of the study which are to understand the organizational culture and structure, products and services offered, departmental functions, and how theoretical knowledge is applied practically. It also provides details about the Indian cement industry, including major players and their production capacities. The cement industry is an important core industry for India's growth and development.
Here is my report on PRAN-RFL group
// TEAM STARK //
- American International University Bangladesh -
Take Idea from this report but do not copy from this ...
The document provides background information on National Commerce and Credit Bank Ltd (NCCBL) in Bangladesh. It discusses NCCBL's history, organizational structure, products/services, branches, board of directors, and financial performance. During his internship at NCCBL's Banani branch, the author helped with various general banking activities like opening accounts, processing payments/deposits, providing account balances and closures. He also assisted with other administrative tasks such as file/document arrangement. The objective of the internship was to gain practical banking experience and apply academic knowledge.
Bkash is a mobile financial service in Bangladesh that allows users to transfer money, pay bills, and make purchases using their mobile phones. Some key points:
- Bkash was launched in 2011 as a joint venture between BRAC Bank and Money in Motion to expand access to financial services in Bangladesh.
- It has over 2.2 million users and allows transactions through a simple USSD interface that works on basic phones.
- Core services include person-to-person money transfers for a low flat fee, cash deposits and withdrawals through an agent network, and bill/merchant payments.
- Bkash aims to promote financial inclusion in Bangladesh by making financial services convenient, affordable and reliable for
This document provides a capital structure analysis of Bajaj Auto Ltd. It begins with an abstract, acknowledgements, table of contents, and introduction on capital structure. It then defines capital structure and discusses factors that affect a company's capital structure decision such as business risk, tax position, financial flexibility, and managerial attitude. The document analyzes Bajaj Auto Ltd's capital structure using various ratios and trends over five years. It also performs an Altman's Z-score analysis and provides recommendations. In summary, the document analyzes the key determinants of Bajaj Auto Ltd's capital structure and assesses its financial health.
Business development summer internship project reportRahulkumar6266
This document is a summer training project report submitted by Rahul Kumar to fulfill the requirements for a Bachelor of Business Administration degree. The report focuses on Rahul Kumar's training in business development at Nivesh Global Pvt. Ltd. The report includes an introduction, research methodology, conceptual discussion, data analysis, findings and recommendations, conclusion, and bibliography sections. It also acknowledges those who helped and supported Rahul Kumar during the training project.
A survey of investors for analyzing the various aspects of fixed deposit mark...123satyendra
This document provides an industry internship project report submitted by Satyendra Singh to St. Kabir Institute of Professional Studies in partial fulfillment of a Post Graduate Diploma in Management program. The report analyzes various aspects of the fixed deposit market for Mahindra & Mahindra Financial Services Ltd. in Amreli, Gujarat, India. It includes an introduction, overview of Mahindra & Mahindra and MMFSL, literature review, research methodology, data analysis and interpretation, findings and recommendations. The objectives are to analyze awareness of MMFSL FDs, the role of demographics on FD preferences, relative preference for investment instruments, and response to MMFSL FDs.
Comparative Performance Analysis between Islami Bank Bangladesh Limited & EXI...Jahid Khan Rahat
Banking sectors are considered as the backbone of an economy. In the same way, there are several types of banks (Conventional, Islamic, Specialized) in Bangladesh. Of these banks, Islamic banks are in growing position in our country. Most of the people in our country are Muslims, they prefer to deposit and take loans from the Islamic banks in the sense of Islam. As a result, we try to find out Shariah based banks’ performance in Bangladesh. However, both of our selective bank is operating their financial operation based on the shariah rules. To measure performance, we have compelled two Shariah based banks that is Islamic Bank Bangladesh Limited and Exim Bank Bangladesh Limited, selected by our faculty. We analysis the bank financial performance based on CAMEL Rating Analysis system
This document is an internship report submitted by Mohammad Shorab Hossain to his professor S.M. Arifuzzaman detailing his internship experience at Southeast Bank Limited's Sat Masjid branch. The report includes an introduction, history and overview of Southeast Bank, and description of general banking activities at the branch. It provides information on account opening procedures, types of deposit and savings schemes offered, and necessary documents required to open different types of accounts like individual, joint, partnership, company accounts. The report aims to share the knowledge gained during the internship period about banking operations and activities at Southeast Bank Limited.
Internship report on janata bank limited and its general banking activitiesAkash Kumar Ghosh
This internship report summarizes the author's 3-month internship at Janata Bank Limited in Bangladesh. It provides an overview of the bank, including its background, products/services and operational areas. The report consists of 7 chapters that describe the general banking activities observed, lessons learned, analysis/findings, and recommendations. The author's main focus was the bank's general banking section, where they gained practical experience of the bank's core operations under supervision.
The document provides background information on Janata Bank Limited (JBL), one of the largest state-owned commercial banks in Bangladesh. It discusses the history of banking in Bangladesh and the nationalization of banks in 1972. JBL was established by taking over branches of two former private banks. Currently, JBL has over 900 branches and over 14,000 employees. The report provides an overview of JBL's management, vision, mission, and financial details such as deposits, capital, assets, and branches. It outlines the bank's products and services, including deposit schemes, utility services, financing, and remittances.
Reverse mortgage at sbi mba finance project reportBabasab Patil
This document provides an executive summary of a project studying reverse mortgages at SBI Belgaum. The objectives of the study are to understand the organizational structure of SBI, study the theoretical and practical aspects of reverse mortgages, and conduct a feasibility study. The research methodology included a sample size of 30 respondents selected using deliberate convenience sampling. Data was collected through questionnaires, interviews, bank records, journals, and websites. The study was limited by the lack of information provided by the bank due to privacy policies. Key findings included that only 40% of respondents had basic knowledge of reverse mortgages and 7 of 30 respondents were willing to obtain one. Suggestions for improving reverse mortgages included better education, covering
Analysis on financial performance of RSRMAbu Nahiyan
Keeping pace with globalization, Bangladesh is experiencing rapid infrastructural development. In this situation iron & steel industry has a bright growth prospect & Ratanpur Steel Re-Rolling Mills Ltd. is pioneer in this industry. The slogan of the RSRM is “Steel for the nation”.
In this competitive market RSRM using most advanced and latest technology suitable for the production of Termo–Mechanically Treated (TMT) reinforcement bar renowned worldwide for its special features of having strength with high elongation percent and toughness which is not possible in other ordinary reinforcement bars of conventional processes.
Ratanpur Steel Re-Rolling Mills Ltd. was incorporated in Bangladesh as private limited company on 22 April, 1986 as company limited by shares under the Companies Act, 1913 and converted into public limited company on 26 June 2012 under the Companies Act, 1994. The Company is engaged in the manufacturing process of producing various grades of M.S. Deformed Bar (300W/40 Grade, 400W/60 Grade and 500W/TMT) from M.S.Billet and sakes/export of the products and other business related thereto. The Company has set up its Re-Rolling Mills factory at 176, BaizidBostami I/A, BaizidBostami road, Nasirabad, Chittagong, and commenced commercial production from 1986. The Company is listed with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) as a publicly quoted company. Trading of the shares of the company started in two stock exchanges from 22 September 2014.
ICICI Bank is one of the largest banks in India with over 3,800 branches across the country. It offers a wide range of banking and financial services to both corporate and retail customers. ICICI Bank has a three-tier management structure - top level management sets strategy and policies, middle level management executes plans and communicates between top and lower levels, and lower level provides supervision of employees. The bank emphasizes diversity and has a 70% male to 30% female employee ratio, with programs to support work-life balance.
Capital market is absolutely a vital consider for the proper functioning of capitalistic economy, since they serve the channel funds from savers to borrowers. The securities market allows sound listed companies to raise additional capital quickly and cheaply, as they enjoy reputation. A vibrant and liquid securities market encourages increase in savings by offering attractive and rewarding securities in terms of higher return, lower risk and easy option for conversion to cash. Investors in Bangladesh became increasingly interested in equity markets because many entrepreneurs look for requirements from the equity markets for many reasons. In this connection Dhaka Stock Exchange Limited plays an integral part of the industrialization of the country. For this regard floating securities through IPO in the stock market is very analytical task and the whole procedure is the main focus of this report.
internship report on credit managementKhaled Masud
This internship report analyzes the credit management activities of Mercantile Bank Limited (MBL) in Bangladesh over a five year period from 2010-2014. It includes an analysis of MBL's deposit growth and composition, loans and advances by sector, investment activities, key financial ratios like loan deposit ratio and return on investment. The report finds that while MBL has grown its deposit base significantly, it faces challenges in managing non-performing loans and needs to improve some of its financial ratios. The conclusion provides recommendations to help MBL strengthen its credit risk management and further improve its performance.
This document provides an overview of mobile banking. It discusses that mobile banking allows customers to access banking services from anywhere through their mobile devices. It provides banking access to remote populations. Mobile banking is growing globally with over 4 billion mobile subscribers. It has lower costs than traditional banking and less security risks than internet banking. While adoption varies between countries, mobile banking is still emerging but creating economic impact. The document also discusses bKash's mobile banking services in Bangladesh, including cash deposits, withdrawals, money transfers, and bill payments available through agents or ATMs.
This document provides information about a marketing research project conducted by Manish Ranjan Singh for his MBA degree, focusing on the neuromuscular blocker cisatracurium. It includes certificates of completion, originality, and from the company where the research was conducted. The research was conducted at Abbott India Ltd. to understand customer preferences for neuromuscular blockers and develop a medical positioning for the product cisatracurium in the Indian market.
This internship report provides an overview of credit risk management at Southeast Bank Limited's Pragati Sarani branch in Dhaka, Bangladesh. The report discusses the bank's history, vision, products and services, organizational structure, and key performance metrics related to loans and credit. Specifically, the report examines the bank's procedures for credit approval and management of loan defaults. It also provides an analysis of the bank's loan portfolio, classified loans, profits, and a SWOT analysis. The overall aim is to analyze credit risk management practices at the branch.
This document provides a history of the cement industry in Pakistan from independence in 1947 through recent years. It discusses key developments and ownership changes in the industry during different eras, including nationalization under Bhutto, de-nationalization under Zia-ul-Haq, and privatization under Nawaz Sharif. The cement industry grew significantly from its origins of 4 plants with 0.5 million tons of capacity to over 24 plants with capacity over 8.5 million tons by 1990 through expansions in both the public and private sectors over several decades.
A power point presentation report of my summer internship. My internship was for a training program for MITCON consultancy & IESS. It was a brief study about the fitness industry in Pune and based on it deciding the marketing strategies for the course.
This report summarizes M.A. Matin's internship at Pubali Bank Ltd's Principal Branch in Dhaka, Bangladesh. It provides an overview of Pubali Bank's vision, organizational structure, and the general banking, loans, and advances departments. As part of the internship, Matin assisted with account openings, check processing, local remittances like telegraphic transfers and demand drafts, loan applications and disbursements, and customer service. The report also identifies some challenges faced by the bank and provides recommendations to address them.
This document discusses growth drivers for the Indian two-wheeler industry. It notes that the industry has grown strongly over the last two years at a rate of 25% and 27% annually, reaching 13.3 million units. Going forward, the industry is expected to grow at a CAGR of 10-12% over the next five years to reach 21-23 million units by 2015-16. Key growth drivers include rising per capita GDP increasing affordability, low two-wheeler penetration levels compared to other countries providing headroom for growth, favorable demographics, growing urbanization, and a swelling replacement market. New market entrants and product launches are also expected to support industry growth over the medium term.
India has become the second largest steel producer in the world in 2018. Steel production capacity has expanded rapidly from 59.84 million tonnes in FY08 to 137.98 million tonnes in FY18. The National Steel Policy aims to further increase capacity to 300 million tonnes by 2030-31. Crude steel production grew at a CAGR of 6.71% during FY08-FY18 to reach 103.13 million tonnes. Finished steel consumption also increased at a CAGR of 5.70% over the same period to 90.70 million tonnes. Per capita steel consumption is expected to rise to 160kg by 2030-31 from 68.90kg in FY
The document provides background information on National Commerce and Credit Bank Ltd (NCCBL) in Bangladesh. It discusses NCCBL's history, organizational structure, products/services, branches, board of directors, and financial performance. During his internship at NCCBL's Banani branch, the author helped with various general banking activities like opening accounts, processing payments/deposits, providing account balances and closures. He also assisted with other administrative tasks such as file/document arrangement. The objective of the internship was to gain practical banking experience and apply academic knowledge.
Bkash is a mobile financial service in Bangladesh that allows users to transfer money, pay bills, and make purchases using their mobile phones. Some key points:
- Bkash was launched in 2011 as a joint venture between BRAC Bank and Money in Motion to expand access to financial services in Bangladesh.
- It has over 2.2 million users and allows transactions through a simple USSD interface that works on basic phones.
- Core services include person-to-person money transfers for a low flat fee, cash deposits and withdrawals through an agent network, and bill/merchant payments.
- Bkash aims to promote financial inclusion in Bangladesh by making financial services convenient, affordable and reliable for
This document provides a capital structure analysis of Bajaj Auto Ltd. It begins with an abstract, acknowledgements, table of contents, and introduction on capital structure. It then defines capital structure and discusses factors that affect a company's capital structure decision such as business risk, tax position, financial flexibility, and managerial attitude. The document analyzes Bajaj Auto Ltd's capital structure using various ratios and trends over five years. It also performs an Altman's Z-score analysis and provides recommendations. In summary, the document analyzes the key determinants of Bajaj Auto Ltd's capital structure and assesses its financial health.
Business development summer internship project reportRahulkumar6266
This document is a summer training project report submitted by Rahul Kumar to fulfill the requirements for a Bachelor of Business Administration degree. The report focuses on Rahul Kumar's training in business development at Nivesh Global Pvt. Ltd. The report includes an introduction, research methodology, conceptual discussion, data analysis, findings and recommendations, conclusion, and bibliography sections. It also acknowledges those who helped and supported Rahul Kumar during the training project.
A survey of investors for analyzing the various aspects of fixed deposit mark...123satyendra
This document provides an industry internship project report submitted by Satyendra Singh to St. Kabir Institute of Professional Studies in partial fulfillment of a Post Graduate Diploma in Management program. The report analyzes various aspects of the fixed deposit market for Mahindra & Mahindra Financial Services Ltd. in Amreli, Gujarat, India. It includes an introduction, overview of Mahindra & Mahindra and MMFSL, literature review, research methodology, data analysis and interpretation, findings and recommendations. The objectives are to analyze awareness of MMFSL FDs, the role of demographics on FD preferences, relative preference for investment instruments, and response to MMFSL FDs.
Comparative Performance Analysis between Islami Bank Bangladesh Limited & EXI...Jahid Khan Rahat
Banking sectors are considered as the backbone of an economy. In the same way, there are several types of banks (Conventional, Islamic, Specialized) in Bangladesh. Of these banks, Islamic banks are in growing position in our country. Most of the people in our country are Muslims, they prefer to deposit and take loans from the Islamic banks in the sense of Islam. As a result, we try to find out Shariah based banks’ performance in Bangladesh. However, both of our selective bank is operating their financial operation based on the shariah rules. To measure performance, we have compelled two Shariah based banks that is Islamic Bank Bangladesh Limited and Exim Bank Bangladesh Limited, selected by our faculty. We analysis the bank financial performance based on CAMEL Rating Analysis system
This document is an internship report submitted by Mohammad Shorab Hossain to his professor S.M. Arifuzzaman detailing his internship experience at Southeast Bank Limited's Sat Masjid branch. The report includes an introduction, history and overview of Southeast Bank, and description of general banking activities at the branch. It provides information on account opening procedures, types of deposit and savings schemes offered, and necessary documents required to open different types of accounts like individual, joint, partnership, company accounts. The report aims to share the knowledge gained during the internship period about banking operations and activities at Southeast Bank Limited.
Internship report on janata bank limited and its general banking activitiesAkash Kumar Ghosh
This internship report summarizes the author's 3-month internship at Janata Bank Limited in Bangladesh. It provides an overview of the bank, including its background, products/services and operational areas. The report consists of 7 chapters that describe the general banking activities observed, lessons learned, analysis/findings, and recommendations. The author's main focus was the bank's general banking section, where they gained practical experience of the bank's core operations under supervision.
The document provides background information on Janata Bank Limited (JBL), one of the largest state-owned commercial banks in Bangladesh. It discusses the history of banking in Bangladesh and the nationalization of banks in 1972. JBL was established by taking over branches of two former private banks. Currently, JBL has over 900 branches and over 14,000 employees. The report provides an overview of JBL's management, vision, mission, and financial details such as deposits, capital, assets, and branches. It outlines the bank's products and services, including deposit schemes, utility services, financing, and remittances.
Reverse mortgage at sbi mba finance project reportBabasab Patil
This document provides an executive summary of a project studying reverse mortgages at SBI Belgaum. The objectives of the study are to understand the organizational structure of SBI, study the theoretical and practical aspects of reverse mortgages, and conduct a feasibility study. The research methodology included a sample size of 30 respondents selected using deliberate convenience sampling. Data was collected through questionnaires, interviews, bank records, journals, and websites. The study was limited by the lack of information provided by the bank due to privacy policies. Key findings included that only 40% of respondents had basic knowledge of reverse mortgages and 7 of 30 respondents were willing to obtain one. Suggestions for improving reverse mortgages included better education, covering
Analysis on financial performance of RSRMAbu Nahiyan
Keeping pace with globalization, Bangladesh is experiencing rapid infrastructural development. In this situation iron & steel industry has a bright growth prospect & Ratanpur Steel Re-Rolling Mills Ltd. is pioneer in this industry. The slogan of the RSRM is “Steel for the nation”.
In this competitive market RSRM using most advanced and latest technology suitable for the production of Termo–Mechanically Treated (TMT) reinforcement bar renowned worldwide for its special features of having strength with high elongation percent and toughness which is not possible in other ordinary reinforcement bars of conventional processes.
Ratanpur Steel Re-Rolling Mills Ltd. was incorporated in Bangladesh as private limited company on 22 April, 1986 as company limited by shares under the Companies Act, 1913 and converted into public limited company on 26 June 2012 under the Companies Act, 1994. The Company is engaged in the manufacturing process of producing various grades of M.S. Deformed Bar (300W/40 Grade, 400W/60 Grade and 500W/TMT) from M.S.Billet and sakes/export of the products and other business related thereto. The Company has set up its Re-Rolling Mills factory at 176, BaizidBostami I/A, BaizidBostami road, Nasirabad, Chittagong, and commenced commercial production from 1986. The Company is listed with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) as a publicly quoted company. Trading of the shares of the company started in two stock exchanges from 22 September 2014.
ICICI Bank is one of the largest banks in India with over 3,800 branches across the country. It offers a wide range of banking and financial services to both corporate and retail customers. ICICI Bank has a three-tier management structure - top level management sets strategy and policies, middle level management executes plans and communicates between top and lower levels, and lower level provides supervision of employees. The bank emphasizes diversity and has a 70% male to 30% female employee ratio, with programs to support work-life balance.
Capital market is absolutely a vital consider for the proper functioning of capitalistic economy, since they serve the channel funds from savers to borrowers. The securities market allows sound listed companies to raise additional capital quickly and cheaply, as they enjoy reputation. A vibrant and liquid securities market encourages increase in savings by offering attractive and rewarding securities in terms of higher return, lower risk and easy option for conversion to cash. Investors in Bangladesh became increasingly interested in equity markets because many entrepreneurs look for requirements from the equity markets for many reasons. In this connection Dhaka Stock Exchange Limited plays an integral part of the industrialization of the country. For this regard floating securities through IPO in the stock market is very analytical task and the whole procedure is the main focus of this report.
internship report on credit managementKhaled Masud
This internship report analyzes the credit management activities of Mercantile Bank Limited (MBL) in Bangladesh over a five year period from 2010-2014. It includes an analysis of MBL's deposit growth and composition, loans and advances by sector, investment activities, key financial ratios like loan deposit ratio and return on investment. The report finds that while MBL has grown its deposit base significantly, it faces challenges in managing non-performing loans and needs to improve some of its financial ratios. The conclusion provides recommendations to help MBL strengthen its credit risk management and further improve its performance.
This document provides an overview of mobile banking. It discusses that mobile banking allows customers to access banking services from anywhere through their mobile devices. It provides banking access to remote populations. Mobile banking is growing globally with over 4 billion mobile subscribers. It has lower costs than traditional banking and less security risks than internet banking. While adoption varies between countries, mobile banking is still emerging but creating economic impact. The document also discusses bKash's mobile banking services in Bangladesh, including cash deposits, withdrawals, money transfers, and bill payments available through agents or ATMs.
This document provides information about a marketing research project conducted by Manish Ranjan Singh for his MBA degree, focusing on the neuromuscular blocker cisatracurium. It includes certificates of completion, originality, and from the company where the research was conducted. The research was conducted at Abbott India Ltd. to understand customer preferences for neuromuscular blockers and develop a medical positioning for the product cisatracurium in the Indian market.
This internship report provides an overview of credit risk management at Southeast Bank Limited's Pragati Sarani branch in Dhaka, Bangladesh. The report discusses the bank's history, vision, products and services, organizational structure, and key performance metrics related to loans and credit. Specifically, the report examines the bank's procedures for credit approval and management of loan defaults. It also provides an analysis of the bank's loan portfolio, classified loans, profits, and a SWOT analysis. The overall aim is to analyze credit risk management practices at the branch.
This document provides a history of the cement industry in Pakistan from independence in 1947 through recent years. It discusses key developments and ownership changes in the industry during different eras, including nationalization under Bhutto, de-nationalization under Zia-ul-Haq, and privatization under Nawaz Sharif. The cement industry grew significantly from its origins of 4 plants with 0.5 million tons of capacity to over 24 plants with capacity over 8.5 million tons by 1990 through expansions in both the public and private sectors over several decades.
A power point presentation report of my summer internship. My internship was for a training program for MITCON consultancy & IESS. It was a brief study about the fitness industry in Pune and based on it deciding the marketing strategies for the course.
This report summarizes M.A. Matin's internship at Pubali Bank Ltd's Principal Branch in Dhaka, Bangladesh. It provides an overview of Pubali Bank's vision, organizational structure, and the general banking, loans, and advances departments. As part of the internship, Matin assisted with account openings, check processing, local remittances like telegraphic transfers and demand drafts, loan applications and disbursements, and customer service. The report also identifies some challenges faced by the bank and provides recommendations to address them.
This document discusses growth drivers for the Indian two-wheeler industry. It notes that the industry has grown strongly over the last two years at a rate of 25% and 27% annually, reaching 13.3 million units. Going forward, the industry is expected to grow at a CAGR of 10-12% over the next five years to reach 21-23 million units by 2015-16. Key growth drivers include rising per capita GDP increasing affordability, low two-wheeler penetration levels compared to other countries providing headroom for growth, favorable demographics, growing urbanization, and a swelling replacement market. New market entrants and product launches are also expected to support industry growth over the medium term.
India has become the second largest steel producer in the world in 2018. Steel production capacity has expanded rapidly from 59.84 million tonnes in FY08 to 137.98 million tonnes in FY18. The National Steel Policy aims to further increase capacity to 300 million tonnes by 2030-31. Crude steel production grew at a CAGR of 6.71% during FY08-FY18 to reach 103.13 million tonnes. Finished steel consumption also increased at a CAGR of 5.70% over the same period to 90.70 million tonnes. Per capita steel consumption is expected to rise to 160kg by 2030-31 from 68.90kg in FY
The steel industry in India has seen significant growth in recent years. India has become the second largest producer of crude steel in the world, with production reaching 103 million tonnes in FY18. Capacity has also increased rapidly to around 138 million tonnes in FY18, and plans are in place to reach 300 million tonnes by 2031. Consumption has grown at a CAGR of 5.7% from FY08 to FY18 to reach around 91 million tonnes. However, demand has generally outpaced supply in recent years. The government has implemented policies like the National Steel Policy 2017 to encourage further growth and help the industry reach global benchmarks.
India has become the second largest steel producer in the world in 2018. Steel production and capacity in India have grown rapidly over the past decade, with capacity reaching 137.98 million tonnes in 2017-18. Consumption has also increased steadily, driven by growth in infrastructure, automotive, and other sectors. The government has implemented policies like the National Steel Policy to encourage further capacity growth to 300 million tonnes by 2030-31. Low per capita consumption compared to other countries also provides significant potential for further demand growth.
- Asia accounts for the largest share of global construction spending, contributing 44% in 2013, with infrastructure making up the largest portion. However, growth rates in developing economies are projected to slow relative to developed countries in the short-term due to China's economic challenges.
- Vietnam's construction industry grew rapidly from 2000-2009 but slowed in recent years due to oversupply issues. Residential construction accounts for the majority of output while infrastructure needs substantial investment to support growth.
- The report provides investment recommendations for several listed construction companies in Vietnam based on revenue and earnings estimates for 2015, with target prices set using P/E multiples relative to
Financial analysis of Cement Industry_V3.pptxSakshi Garg
India's cement industry is on a trajectory of remarkable growth. The market size, reaching 3,644.5 MT in 2022, anticipates a substantial increase to 4,832.6 MT by 2028, reflecting a CAGR of 4.94% during 2023-2028
Let's understand current govt policy to boost cement industry, top 10 cement players, their comparative financial health, current and future production level, growth drivers, relative working capital health and much more.
The document provides an overview of the engineering and capital goods sector in India. Some key points:
- The capital goods and engineering turnover in India grew from $46.18 billion in FY2015 to an estimated $125.4 billion in FY2017.
- Major segments within the sector include heavy electrical equipment, machine tools, construction equipment, earth moving equipment, process plant machinery, and dies, molds and tools.
- Growth drivers include increasing industrialization, investments in infrastructure and power, and capacity expansion in sectors like mining and oil & gas. The sector provides significant opportunities with India's focus on domestic manufacturing.
India's engineering and capital goods market has grown significantly in recent years and is expected to continue expanding rapidly due to increased industrialization, infrastructure development, and economic growth. The capital goods and engineering turnover reached US$125.4 billion in FY17, up from US$46.18 billion in FY15. Key segments like electrical equipment, construction equipment, and telecom equipment have all seen strong growth and are projected to more than double in size by 2020. The engineering sector is a large employer in India and exports have increased at a CAGR of 7.61% between FY08-FY17, reaching US$65.23 billion in FY17. Transport equipment, industrial machinery, iron and steel
- India's capital goods and engineering turnover is expected to reach US$ 125.4 billion by FY17 from US$ 46.18 billion in FY15, growing at a CAGR of 24.9%.
- The electrical equipment market is forecasted to reach US$ 100 billion by FY22 from US$ 21 billion in FY17, growing at a CAGR of 64.8%.
- Engineering research and design segment revenues are projected to increase fourfold to reach US$ 45 billion in FY20 from US$ 22 billion in FY16, growing at a CAGR of 19.6%.
Engineering and capital goods exports from India have grown significantly over the past decade, reaching US$65.23 billion in FY17. The sector is dominated by heavy engineering segments such as electrical machinery, construction equipment, capital goods, and automotive. Light engineering also has a large presence with segments like medical equipment, casting, forging and fasteners. Going forward, the sector is expected to continue its robust growth driven by rising industrialization, infrastructure development, and capacity expansion across core industries. The engineering sector provides significant opportunities for both domestic and international players in India.
U.S. Fabricated Structural Metal Market. Analysis And Forecast to 2020IndexBox Marketing
IndexBox Marketing has just published its report: “U.S. Fabricated Structural Metal Market. Analysis And Forecast to 2020”.
The report provides an in-depth analysis of the U.S. fabricated structural metal market. It presents the latest data of the market size and volume, domestic production, exports and imports, price dynamics and turnover in the industry. In addition, the report contains insightful information about the industry, including industry life cycle, business locations, productivity, employment and many other crucial aspects. The Company Profiles section contains relevant data on the major players in the industry.
U.S. Fabricated Structural Metal Market. Analysis And Forecast to 2020IndexBox Marketing
IndexBox Marketing has just published its report: “U.S. Fabricated Structural Metal Market. Analysis And Forecast to 2020”.
The report provides an in-depth analysis of the U.S. market for fabricated structural metal. It presents the latest data of the market size and volume, domestic production, exports and imports, price dynamics and turnover in the industry. In addition, the report contains insightful information about the industry, including industry life cycle, business locations, productivity, employment and many other crucial aspects. The Company Profiles section contains relevant data on the major players in the industry.
For updated information, please visit www.ibef.org December 2017
ENGINEERING AND CAPITAL GOODS
- The engineering and capital goods market in India is growing rapidly and is expected to reach US$ 125.4 billion by FY17 from US$ 46.18 billion in FY15.
- Key segments driving growth include electrical equipment, construction equipment, engineering research and design, and telecom equipment. The electrical equipment market is projected to reach US$ 100 billion by FY22.
- India has a comparative advantage in the engineering sector via low manufacturing costs, skilled labor, and growing domestic demand from sectors like infrastructure, power, mining and construction.
This document discusses investing in the Bangladesh stock market. It outlines that Bangladesh has a growing economy and is classified as an emerging nation. Several sectors like textiles, engineering, cement, and pharmaceuticals are poised to grow due to factors like infrastructure development, increasing demand, and fiscal incentives. Specific companies are analyzed in these sectors like BSRM Steels Limited, an industry leader in steel. The document recommends investing in BSRM Steels given its market position, capacity expansion plans, superior brand, and financial performance including consistent profitability and dividend growth. Overall, the stock market presents a strong investment opportunity for those looking to capitalize on Bangladesh's economic rise.
The boiler market in India is growing fast at a CAGR (Compounded Annual Growth Rate) of 24.53%, courtesy the ever increasing energy requirement of the nation. The thermal power sector, ie- coal and gas based generation are the key driver of this growth of Indian boiler market. Other than them, it’s the biomass power plants which drives the small segment boiler market.
Engineering and capital goods exports from India have grown significantly over the past decade, reaching US$65.23 billion in FY17. The top categories of engineering exports from India are transport equipment including automotive and auto components, accounting for 32.46% of total exports. Industrial machinery including electrical machinery is the second largest category at 23.85% followed by iron and steel products. The engineering sector in India is expected to continue growing driven by increasing industrialization, infrastructure development, and the expansion of core sectors such as power, mining and construction.
This document discusses the DSP India T.I.G.E.R. (The Infrastructure Growth and Economic Reforms) Fund, which focuses on capturing growth potential from India's economic reforms and infrastructure development. It highlights several positive factors that indicate the investment cycle in India has bottomed out and is poised for revival, such as improved bank balance sheets, rising tax revenues, capacity utilization increasing, and new project announcements picking up. Government policies like production-linked incentive schemes and the largest ever infrastructure budget allocation are also expected to drive a pickup in private sector capex. Various sectors like manufacturing, real estate, renewable energy are discussed as poised to benefit from this investment and infrastructure growth cycle.
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The following article was written by me, and was published in the Economic Trends section of the Keystone Quarterly Review (Volume-31) on November 30, 2020: https://lnkd.in/g9nGxzn
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The document summarizes the economic impacts of the Covid-19 pandemic, including a potential global recession. It discusses indicators that a recession may occur, such as stock market declines and yield curve inversions. The pandemic has reduced global production and exports while increasing unemployment. For Bangladesh specifically, exports and remittances declined sharply, threatening employment and government revenue. The economic challenges for Bangladesh recovering are substantial in the face of an uncertain global economic outlook.
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analysis additionally supported by technical analysis. We used three models namely Dividend
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Starbucks Corporation is one the renowned American coffee shop and coffee chain. It was
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Starbucks sells coffee, smoothies, tea, baked items and sandwiches. Kevin Johnson is CEO &
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organizations like PepsiCo, Tata, Stanley team, Ban.do, Disney X etc. They are also
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focusing on the commitments. As a large corporation they believe that it„s their duty to
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To gain a financial insight on bank’s financial statements
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[4:55 p.m.] Bryan Oates
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Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
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For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
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Equity Research and Financial Modelling Report on BSRM Steels Ltd
1. Company fundamentals
Market Cap (BDT mn) 22,369.17
Market Weight 0.70%
Free-float (Public + Institution +
Foreign) 29.40%
No. of Shares Outstanding 375,952,500
Paid-up Capital (BDT mn) 3759.53
Current Price (BDT) 59.8
52-Week Price Range (BDT) 54.00-79.10
Sector Forward P/E 19.2
Figure 1: Company Fundamentals
Model Name
Price
(BDT) Weight
Weighted
Price
FCFF 89.69 50% 44.84
DDM 112.73 20% 22.50
P/E Multiple 84.33 30% 25.30
Total 100%
Target Price 92.69
Market Price (21
April 2019) 59.80
Comment
Undervalued
by 55.00%
Figure 2: Valuation Summary
Date: 23rd
April 2019 Recommendation: BUY Sector: Engineering
Current Price (21st
April ’19): BDT 59.80 (USD 0.71) Target price: BDT 92.69 (USD 1.10) DSE: BSRMSTEELS
Exchange rate: BDT 84.36/USD Capital Gain: 55% Bloomberg: BSRM:BD
Investment Summary
BSRM Steels Limited mainly engaged in the production and supply of “Xtreme 500W” (the only EMF
(Elongation at Maximum Force) tested and Fatigue ductile rod in Bangladesh) deformed bars of
reinforced steel. Xtreme500W also demonstrated superior yield strength and ductility compared to the
traditional Grade 60 rebar. This reduced the quantity of steel consumed in any building by 15%. The
main purpose of the Company is to manufacture M.S. products by setting up rolling and re-rolling mills
and marketing the same. In 2017 the Company launched ‘BSRM Maxima’ which is the first Rebar of the
country designed specifically for the mega projects. The new Grade 80 will be more economical as it will
require 20% less steel in construction. The Company is supplying specialized steel to Padma
Multipurpose Bridge, Roopur Nuclear Power Plant, Mass Rapid Transit Project (Rail), Metro Rail, Rampal
1320MW Power Plant, First Dhaka Elevated Express Way, Payra 1320 MW Thermal Power Plant Project.
Moreover, people are more quality and safety conscious. Resultantly, demand for quality steel like BSRM
product is rising. The production efficiency of the mill is very impressive during the period of July 2017
to June 2018. BSRM Steels Limited again produced more than its installed capacity. (Figure 3)
Highlights and Business Description:
We have issued a buy recommendation with a 1-year target price of BDT 92.69; representing a capital
gain of 55% from its April 21st
2019 closing price of BDT 59.80. To get this price, we allocated 50% weight
on FCFF model, 30% on P/E multiple and 20% on DDM model. (Figure 2). Our recommendations are
based on the following key catalysts:
• Bangladesh Steels is going to increase their production capacity with setting up new factories
in Mirsharai Economic Zone. According to the proposals, it was learnt that the BSRM group has
submitted two separate investment proposals for establishing iron plant and steel mill shop. They are
going to invest $59.45 million and sought some 100 acres of land in Mirsharai economic zone’s sector-
4 for iron plant and $180 million for another steel mill factory over 40 acres of land (Steel makers
contemplating fresh investment, 2018).
• BSRM is set to open a Sh6.5 billion ($65 million) factory in Kenya. Bangladesh Steel Re-Rolling
Mills Ltd (BSRM) announced the local venture to be known as BMS Steel Limited. The investment
partners have operations in Kenya and other countries in Africa. BMS Steel Limited will set up a
manufacturing facility with total investment of about $65 million to produce 0.40 million metric tons
BMS bars and sections per year. The new entrant is expected to take the battle for local production and
sale of steel products to local players’ doorsteps. (Bangladeshi steel maker, 2018).
2. Figure 3: Capacity, Production and Sales of BSRM Steels
Figure 4: Price Volume Chart of BSRM Steels
Key Financials 2019E 2020E 2021E 2022E 2023E
Revenue
Growth 12.07% 12.07% 12.07% 12.07% 12.07%
EBITDA Margin 9.38% 9.47% 9.55% 9.63% 9.70%
Net Profit
Margin 4.96% 5.01% 5.06% 5.11% 5.14%
ROE 20.03% 18.83% 17.87% 17.09% 16.44%
EPS 8.63 9.78 11.06 12.51 14.12
Figure: 5 Key Financials
Particulars Jun-18 Jun-17 Jun-16 Dec-15 Dec-14
Installed
capacity
(M.Ton) 700,000 700,000 700,000 700,000 60,000
Production
(M.Ton) 727,034 681,061 362,254 602,832 623,918
Capacity
Utilization (%) 103.86% 97.29% 103.50% 99.50% 104.00%
Sales (M.ton) 710,995 692,504 373,747 604,513 679,803
• BSRM is set to open a Sh6.5 billion ($65 million) factory in Kenya. Bangladesh
Steel Re-Rolling Mills Ltd (BSRM) announced the local venture to be known as BMS Steel
Limited. The investment partners have operations in Kenya and other countries in Africa.
BMS Steel Limited will set up a manufacturing facility with total investment of about $65
million to produce 0.40 million metric tons BMS bars and sections per year. The new
entrant is expected to take the battle for local production and sale of steel products to
local players’ doorsteps. (Bangladeshi steel maker, 2018).
• BSRM Group is setting up a coal based 150 MW merchant power plant by
investing BDT 1.0 billion, which is likely to commence operation by 2019. The plant will
benefit the Company by providing smooth power supply at reduced cost.
• The Company is supplying specialized reinforcing steel for construction of Padma
Multi-purpose Bridge and Rooppur Nuclear Power plant and new Kanchpur Meghna
Gumti bridges.
• In 2016-17, the Company rolled out new grade reinforcing steel conforming to
the US standard ASTM 706 Grade 80 which will be more economical as it will require 20%
less steel in construction along with higher elongation than the older Grade 60.
From the above 1 year price volume chart we can get an insight of the fluctuation
of price and trading volume of the stock over the last year. BSRM Steels stock price
comparatively fluctuated in small range over the last year on average the price was
around 70. The 3 years price volume chart shows that the stock price has significantly
decline over the last years. In 2016 the stock price was more than 100 and now it’s
around 60. Moreover it also shows that the volume of trading has also decreased over
the years. The BSRM Steels share price maintained stable price across the range of 80-60
BDT over the year. Since, he BSRM Steels has an below average industry P/E ratio so it is
an undervalued share, which means it can be highly profitable to invest in this share
during the normal periods and gain high profit by selling of during/after the dividend is
announced. (Figure 4).
• BSRM Group is the pioneer and leading the steel market from the front in the
branded steel products with a market share of 27%.
1.63%
3.09%
1.24%
2.97%
1.67% 1.64% 1.62% 1.59% 1.56% 1.54%
0.00%
1.00%
2.00%
3.00%
4.00%
2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E
Dividend Yield
3. Figure 6: Year-wise Macro-economic factors and BSRM Steels growth
Figure 7: Year-wise steel industry factors growth and BSRM steels CAGR
-20.00%
0.00%
20.00%
40.00%
60.00%
2011 2012 2013 2014 2015 2016 2017 2018
Year-wise Growth
GDP Growth GDP from Contruction
Per capita steel consumption BD Population
Real Estate BSRM Steels
-50.00%
0.00%
50.00%
100.00%
150.00%
2011 2012 2013 2014 2015 2016 2017 2018
Year-wise Growth
GDP Growth GDP from Contruction
Real Estate Per capita steel consumption
Import of iron Scrap'000MT BSRM Steels
Industry overview & Competitive Positioning
Macroeconomics
Construction sector and infrastructure growth of the country:
The construction sector is playing an increasingly strong role in the economy amid
continued urbanization and an array of large infrastructure projects undertaken by the
government. It is one of the 15 major sectors that contribute to the gross domestic product
(GDP).The sector posted 9.92 percent growth in 2017-18, up from 8.77 percent in the
previous fiscal year, according to the state-run Bangladesh Bureau of Statistics (BBS). The
sector's share to the GDP increased to 7.50 percent in the last fiscal year, which was 7.36
percent in 2016-17. The value of the economic activities in the sector was Tk 73,595 crore in
the last fiscal year. The mega projects taken by the government will boost up the growth of
this sector even higher. (Figure 6 and 7)
Stable economic growth and mega projects of the government:
Bangladesh's economy has grown 8.13 per cent this fiscal year, the highest in its history,
Finance Minister AHM Mustafa Kamal said while releasing a provisional estimate. (GDP
growth 8.13%, breaks previous records, 2019)Bangladesh is likely to be the biggest mover in
the global gross domestic product rankings in 2030, becoming the 26th largest economy in
the world from 42nd now, according to the latest report of HSBC Global Research. HSBC's
long-term growth model projections showed that the real GDP growth of Bangladesh would
be 7.1 percent per year up to 2030, the highest among the 75 countries included in the report.
The country is projected to grow 7.3 percent from 2018 to 2023, 7.0 percent from 2023 to
2028, and 7.2 percent from 2028 to 2033. Bangladesh will be a $700 billion economy in 2030
from $300 billion now, according to the report. (Bangladesh to be 26th largest economy,
2018). (Figure 4).
Population growth, urbanization and stable unemployment rate:
In addition to favorable demographics, rapid growth in urbanization will certainly
contribute the steel industry to grow further. Bangladesh has a market of over 160 million
people with a population growth of 1.04% (Source: CIA Factbook, 2017). The country’s
urban population is growing faster than the growth of the total population which is
favorable for the industry which is eventually causing potential rise in living standard and
income level of the people. This will certainly help to propel the steel industry by generating
more revenue through increasing sales volume. The population growth remained constant
at 1.21% and the unemployment rate was around 4.20% which seems positive for a country
with such large population. The literacy rate and male-to-female ratio also followed
constant patterns.
8
4. Figure 9: Key players in Steel Industry
Figure 10: Imports of Steel industry
Figure 11: Import of Iron Scrap
Steel industry overview
Market players
There are around 400 steel mills in Bangladesh with a total production capacity of around 8 Million MT.
Currently major steel producers Abul Khair and BSRM plan on significantly raising their crude steel
production. KSRM, GPH, Anwar, Rani, and SSRM are also expanding. According to a 2016 report by EBL,
Abul Khair, BSRM, and KSRM account for more than 90% of total capacity in manufacturing billet, and
more than 50% of the country’s annual demand. (Figure 9)
Market Fundamentals
The demand for steel in Bangladesh is mainly driven by infrastructure projects in commercial, housing,
and public sector. The public sector can be further broken down to implementation of the government’s
annual development plans and infrastructure projects. It’s estimated that the sector turns over around
$3.6bn every year. In 2016, government projects amounted for almost 40% of total steel consumption.
Bangladesh is heavily reliant on imports of semi-finished and finished steel products as well as flat
products while being strategically positioned next to the top two steel producers in the world, China and
India. The majority of imports are scraps, flat products, and semi-finished and finished steel products
making up a total of 6.992 Million MT or over 93% of all imports. Given the nature of steel businesses as
heavy manufacturing, cost of production for goods sold can be as great as 80-90% of revenue. The
business mainly relies on importing billet, the main raw material required for production. Although the
local market is capable of meeting over 90% of demand for billets, a considerable amount of imports are
still required due to the majority of production is used as a backward linkage for producer’s own re-
rolling mills. (Figure 10 and 11)
The emerging market
The global steel industry is going through a slowdown; however there are a few countries which have
performed extremely well and Bangladesh is one of them. The steel sector in Bangladesh has recorded a
15 per cent growth in 2015 riding on infrastructure projects both housing and public utilities. The
country is one of Asia’s most emerging steel markets and has a growing need for raw materials and
steelmaking technologies. The growth trend will continue for the next 20 years to 25 years and the steel
demand will also increase in line with development activities of the government and the booming
housing sector in both urban and rural areas. The ongoing major projects like 'Padma Bridge', 'Dhaka-
Chittagong Access Control Highway' and the upcoming major projects like 'Dhaka Elevated Expressway'
and the 'Deep Sea Port' would be requiring huge quantity of quality construction materials. Historical
data shows that consumption of steel has been increasing. The industry grew from producing a merge
47,000 MT in 1971 to 4.0 million Mt in 2016.The production of this sector expected to double about 8.0
million Mt on 2022 by the industrialists. (Steel industry review, 2018). Per capita steel consumption in
Bangladesh is now 45 kilograms (kg). The country's per capita steel consumption is projected to increase
to 73 kg by 2022. (Mega projects lift demands for steel, 2018). Iron Scrap is a major raw material for
steel units based in Bangladesh. Only a small amount of required small materials are available from local
source and the country needs to import significant volume of iron scrap materials from abroad. The
import of iron scrap has increased significantly over the last few years. Increasing trend of the importing
indicates future growth of the industry. (Figure 11)
5. Figure 12: FCFF Valuation
Figure 13: P/E Multiple Valuation
Figure 14: DDM Model
FCFF
Long-term FCF growth rate 7.50%
Weighted average cost of
capital (WACC) 12.45%%
Enterprise value 53898469903
Cash 1019379483
Debt 28645869540
Equity value 26271979846
No of shares 375952500
Intrinsic value 89.69
Market price 21/04/2019 59.8
Undervalued by 49.98%
P/E Multiple
Industry PE 16.18
BSRM Steels PE 14.21
BSRM EPS 5.21
Intrinsic value 84.33
Price on 21/4/2019 59.80
Undervalued by 41.02%
Dividend Discount Model (DDM)
Average PE 18.92
Dividend payout ratio 41.33%
Growth 13.16%
WACC 12.45%
Intrinsic value 112.4
Market price 59.8
Comment Undervalued
Valuation: For the valuation we have use three different models name FCFF model, Dividend Discount
Model and Market Multiplier model.
FREE CASH FLOW TO FIRM (FCFF): FCFF model has been chosen for BSRM Steel’s valuation because, in the
past years, the company have maintained consistent growth in free cash flow. According to our analysis,
free cash flow is expected to increase in the upcoming years as well. FCFF reflects the overall
fundamentals of a company. Hence FCFF was found to be much relevant model to determine the stock
value of BSRM steels Ltd. For this model, we have first calculated the pro forma financial statements for
the next five years (2019-2023). Based on the future growth we calculated the FCFFs. For the next five
years the sales growth is 12.07% and that has been reflected in the FCFF as well. For the second phase, we
have assumed a constant terminal growth rate for the rest of years till liquidation of the company. We
fixed terminal growth as 7.5%. We assume that the growth rate will be closer to our GDP growth from the
next five years. Therefore, we fixed a terminal rate which is very close to our gdp growth. Based on the
growth rate we calculated the present value of the future cash flows and then we deducted net debt from
the enterprise value to calculate the equity value. Furthermore, dividing the equity value by no of shares
outstanding we calculated the intrinsic value per share. We have found the current market price of the
company is less than the intrinsic value hence the company is undervalued. Our expected terminal growth
rate is 7.5%. To determine this rate, we analyzed the growth potential of the industry and BSRM Steels
Ltd. As the company still has a lot of scope to grow and its growth is aligned with the overall development
of the country, we expect 7.5% terminal growth rate for the company. With the continuous development
of the country there will rise in the construction sector in the country. Moreover, the population of
Bangladesh is on the rise. There will be growth in the housing and construction sector in the future.
Moreover the country has a constant GDP growth rate above 6%. Therefore, we assume that growth rate
will be close to the GDP growth rate of the country. (Figure 12)
Relative valuation (P/E Multiple): We have also done the valuation by using P/E multiple. We have
considered seven company’s stocks in our valuation model. Then we calculated the average price to
earnings ratio of the industry which is 16.18. The PE of BSRM steels Ltd is lower than industry average.
Multiplying the company’s EPS with the Industry average PE we calculated the intrinsic value of 69.88 per
share for BSRM Steels Ltd. The current market price per share of 59.8 indicates the company is now
undervalued. (Figure 13)
Dividend Discount Model: As the company has declared dividend over the last 5 years we used DDM
method for the valuation of the company. In the valuation process we first identified the dividend ratio in
each of previous five years. We the calculated the average dividend payout ratio over the last 5 years. Also
we considered the geometric EPS growth of the company. We found that the geometric EPS growth exceeds
the WACC. Therefore, instead of using constant growth rate model we followed multistage dividend growth
for next five years. And to find out the terminal value we used last five years PE ratio of the company. After
calculating we found the intrinsic value per share is 112.4 which is much higher than the current market
price of the company. Therefore, the company is now undervalued. (Figure 14)
6. Figure 15: WACC Calculations
Sensitivity Analysis
Intrinsic
value
Change in WACC
89.69 10.45% 11.45% 12.45% 13.45% 14.45% 15.45%
ChangeinGrowthRate
5.50% 99.47 70.14 49.35 33.65 21.54 11.87
6.50% 137.19 94.40 66.13 45.80 30.69 18.97
7.50% 200.48 130.95 89.69 62.04 42.47 27.84
8.50% 328.68 192.27 125.20 84.84 58.22 39.27
9.50% 726.78 316.49 184.82 119.18 80.33 54.55
Figure 16: Sensitivity analysis
Required Rate of Return (Equity)
Risk-Free Rate 4.95%
Beta 1.210
Market Return 7.17%
Equity risk premium 10.96%
CAPM 18.21%
Required Rate of Return (Debt)
Risk free rate 6.44%
Average credit spread 4.15%
Tax rate 25.00%
Required Rate of Return 7.94%
WACC
Name Value Weight Re and Rd
Equity 22218792750.00 44.58% 18.33%
Net Debt 27626490057.00 55.42% 7.80%
Total 49845282807.00 100%
WACC 12.49%
Valuation summary: Combining all the three models we calculated the intrinsic value of per
share of BSRM Steels Ltd. Based on their relevance in the valuation we fixed different weight
for different valuation models. To our valuation FCFF model gets heights priority compare to
the others. Therefore we gave 50% weight to this model. We gave lowest weight to DDM model.
We have seen that the dividend payout ratio has decreased over time. Moreover, the company
is expanding its capacity and focused on increasing retained earnings. It might be the case that
the company might not declare dividend in the upcoming years. Therefore, we believe that the
model should get lowest weight in the valuation. For the relative valuation we fixed the weight
of 30%. The overall valuation gives us intrinsic price of 92.69 per share of the company. So the
stock is undervalued by 55.00%. (Figure: 2). In order to determine our expected terminal growth
we used a sensitivity analysis of change in terminal growth against change in WACC. (Figure 16).
If WACC increases above 14.50% it will be a sell call, and if terminal growth falls below 6.50% it
will be a sell call.
Weighted Average Cost of Capital (WACC)
To calculate the required rate of return of equity we followed the CAPM model. Here we
calculated the beta of the stock and market return using last 6 years data. As the market return
is too low we can’t find out appropriate risk premium. Therefore, we have used the equity risk
premium directly that is calculated by Aswath Damodaran. To calculate the required rate of
return of debt we first considered the risk free rate on 5 years debt. Then we considered the
average credit spread in Bangladesh. According to Bangladesh Bank the average credit spread
in the country is 4.15%. Since the company has high debt to equity ratio the weighted average
cost of capital is comparatively lower than other companies who have more equity in the capital
structure.
Financial Analysis
BSRM Steels Limited mainly engaged in the production and supply of “Xtreme 500W” (the only
EMF (Elongation at Maximum Force) tested and Fatigue ductile rod in Bangladesh) deformed
bars of reinforced steel. Xtreme500W also demonstrated superior yield strength and ductility
compared to the traditional Grade 60 rebar. This reduced the quantity of steel consumed in any
building by 15%. It was incorporated in July 2002, commenced its commercial operation from
April 2008. The main purpose of the Company is to manufacture M.S. products by setting up
rolling and re-rolling mills and marketing the same. The Company launched ‘BSRM Maxima’
which is the first Rebar of the country designed specifically for the mega projects. The company
got listed on Dhaka Stock Exchange in 2009. The paid up capital of the company is 3,417.75
million. The current capacity is 700000 MT. (Figure 1, 3 and 19)
7. Figure 17: Distribution Plot
Figure 18: 6-month’s regression against DSEX
0
200
400
600
800
1000
-0.237623762
-0.206753309
-0.175882855
-0.145012401
-0.114141948
-0.083271494
-0.05240104
-0.021530586
0.009339867
0.040210321
0.071080775
0.101951228
0.132821682
0.163692136
0.19456259
0.225433043
0.256303497
0.287173951
0.318044404
0.348914858
BSRM Steels Return Distribution
Frequency Freq. Double
y = 1.1581x + 0.0002
R² = 0.0325
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
-1.50% -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50%
6 months Regression model BSRM Steels vs DSEX
BSRM Steels v/s DSEX Linear (BSRM Steels v/s DSEX)
BSRM Steels
Skewness 2.509702849
Kurtosis 57.93837785
Count 1286
Max 34.89%
Min -23.76%
Range 0.58653862
Bin 19
Width per Bin 0.030870454
The average expected growth rate of 12.07% was calculated based on the multiple
regression analysis of the several dependent and independent variables such as: GDP,
per capita consumption of steel, population growth, GDP from construction, CAGR of
BSRM Steels, Import of Iron scraps and Real Estate sector of Bangladesh. We found the
relative growth average (with given weight 0.4 and 0.6) for the two multiple regression
models 7.64% and 15.02%. We used the average of these two YoY average growth
rates of relative variables and assumed our expected growth rate for BSRM Steels to
be 12.07% over the next 5 years (2019-2023). Running regression of these major
determining factors with the annual sales of BSRM gave an R^2 of around 90%.
Kurtosis (distribution or volatility of skew): The kurtosis of BSRM Steels return
distribution is 57.9384. The distribution is longer and the tails are flatter. The peak of
the return distribution is higher than normal distribution, this means the returns are
heavily tailed and there are a lot return outliers. The outliers stretch the horizontal axis
so this makes the returns appear in a narrow and high vertical range, and the
distribution can be addressed as a leptokurtic distribution.
Skewness (measure of asymmetry in the distribution): The skewness for the return
distribution of BSRM Steels is 2.5097, which means the return distribution is highly
positively-skewed. The median will be greater than the mode as there is asymmetry in
the return distribution. Thus, the BSRM Steels stocks will provide high returns to the
investors.
Figure: 19 Key Profitability ratios of BSRM Steels
0.00
5.00
10.00
15.00
0.00%
10.00%
20.00%
30.00%
2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E
Key Ratios
Earnings Per Share (EPS) Operating Profit Margin
Return On Equity (ROE) Net Profit Margin
EBITDA margin to Sales
8. 0
20
40
60
80
100
120
140
0
11
22
33
44
55
66
77
88
99
110
121
132
143
154
165
176
187
198
209
220
231
242
Price
Trading days/Time period
Simulated 10 lognormal pathways of BSRM
Steels stock price
Path 1 Path 2 Path 3 Path 4 Path 5
Path 6 Path 7 Path 8 Path 9 Path 10
Risk factors and concerns
1. Business Risks
Risks associated with sourcing of Raw Materials: Against their production capacity of 7,00,000 MT MS Rod, they have their billet manufacturing plant having capacity
of 2,20,000 MT. On the other hand BSRM Steel Mills Limited, an associate company of BSRM Steels Limited can meet rest of the required billets of the company.
BSRM Steels Limited is going to establish it’s another Melting Unit with a capacity of 430,000 MT per annum at Mirsarai, Chattogram which will start its commercial
production during year 2019. So group will be self-sufficient for its basic raw materials of billet.
Risks associated with Power Supply: Presently the primary constraint on the economic development of Bangladesh is the shortage of power for which new
industrial investments proposal from home and aboard have failed to materialize.For ensuring uninterrupted power supply BSRM Group has made a deal with
PGCB and installed a substation for tapping power from the 230 KV national grids.
2. Market Risks
Interest rate risk: The business of BSRM Steels Limited requires huge working capital. Although the company closely monitors and manages requirement of capital
investment, the actual capital requirement may deviate from the projected one due to factors beyond its control, thus potentially affecting the borrowing costs.
Interest rate on working capital and term loan has increased during last six months of this year which also affected the net income of the company.
Foreign Exchange Fluctuations: Foreign currency risk is the risk of changes in exchange rates that adversely affect the company’s earnings, equity, and
competitiveness. They are hugely involved with Foreign Trade i.e. Import & Export and thus they are also exposed to Foreign Currency Risks. Exchange rate gains
or losses related to foreign currency transactions are recognized as transaction gains and losses in our income statement as incurred. They also maintain foreign
currency account in which export collection is directly deposited and they can meet foreign currency payment requirements.
Competition and Economic conditions: Competition refers to the risks of decreasing present market share caused by new entrants. As it’s an oligopoly industry
the industry is driven by few large companies. Actions of a large company has direct effect on others business. They try to mitigate this risk through active brand
management and customer relationship and by ensuring timely supply of quality product.
Initial price 59.08 Current market price of the stock on 16th April, 2019
Mean 3.29% Annualized mean return
Sigma 35.29% Annualized standard deviation
Delta_t 0.004 We considered 250 trading days a year
To simulate 10 pathways for the stock price with lognormal distribution we used the
Initial stock price to be 59 and multiplied it with the
EXP(Mean*Delta_t+Sigma*SQRT(Delta_t)*NORM.S.INV(RAND())) Here we kept the
probability as random because stock prices can take any random values. The lognormal
distribution generates simulation of positive stock prices. This is more realistic and
logical compared to the normal distribution simulation. We calculated the Delta_t by
dividing 1 by 250, since we assumed 250 days in a year. The Lognormal simulation helps
us to get an idea of the share price range in the future and we can see that the highest
the price will go around 120 BDT and the lowest around 20 BDT.
9. Appendix
BSRM Steels Limited SWOT Analysis
Strengths. Weakness
Large market share in the industry.
Product like “Xtreme 500 and BSRM Maxima in the product line.
Strong brand image in the industry.
Integrated supply chain system.
Most advanced technology in the industry.
Heavily dependent on importing for raw materials.
High debt/equity ratio.
High cogs margin.
Product price high compare to competitors.
Opportunities Threats
Going to launch billet manufacturing plant.
Investing in new subsidiary in Kenya.
Setting up a coal based 150 MW merchant power plant.
Oligopoly industry.
Future economic growth.
Construction sector future growth.
Increasing in interest will increase cost of debt.
Exposure to foreign exchange rate risk.
Strong rivalry in the industry may arise.
Shipbuilding industry is shrinking.
16. Credit Rating: Credit Rating information and Services Limited (CRISL) assigned rating as below:
Long term Short term
AA+ ST-2
The entities rated “AA+” are adjudged to be of high quality, offer higher safety and have high credit quality. This level of rating indicates a corporate entity with a
sound credit profile and without significant problems. Risks are modest and may vary slightly from time to time because of economic conditions. “ST-2” indicates
high certainty of timely payment. Liquidity factors are strong and supported by good fundamental protection factors. Risk factors are very small. The Company in
the evaluation of Credit Rating Company was also placed with “Stable Outlook”.
Intercept(Alpha) -0.000099626
Slope(Beta) 1.210248472
R Square 0.132170923
Tslope 13.98406308
Tintercept -0.171691744
Avg Daily retun 0.01%
Daily variance 0.05%
Daily Standard deviation 2.23%
Annualized Return 3.29%
Annualized variance 12.45%
Annualized Standard deviation 35.29%
Covariance 0.00005440
CAPM, Re of BSRM Steels 4.74%
Trading days 250
Risk-Free rate, Rf 4.95%
Avg Daily retun 0.02%
Daily Standard deviation 0.67%
Annualized Return 4.78%
Annualized Standard deviation 10.60%
DSEX
BSRM Steels v/s DSEX
BSRM Steels
Average monthly return 0.006
Average annualized return 7.2%
Variance 0.00205
Standard deviation 0.04527
Annual standard deviation 0.15682
Beta 1
DSEX 6 Years annualized return
Return and Sigma Calculations: We collected the daily trading close price and volume
from January 2014 to 21st April 2019 of BSRM Steels in DSE, and the DSEX trade
volume and price of the corresponding days, from the Dhaka Stock Exchange website.
The daily average return was calculated using the average change in price for the each
day over the 5 years period. The daily standard deviation was calculated using the
=STDEV.S() function in excel, the y-variable was the BSRM Steel daily return % and the
x-variable was the DSEX daily return %.
We assumed the annual trading days to be 250 in a year, and multiplied it with the
daily return to get the Annualized return. We multiplied the squared-root of 250 days
with the daily standard deviation to get the annualized standard deviation. The Beta of
the BSRM Steels stock price with DSEX index was calculated using the =Slope() function
in excel and also using regression analysis.
Calculating Return on Equity using regular CAPM formula gives a very low value which
is not reliable and logical. So, in the WACC worksheet we found the Return on Equity
through more integrated calculations.
17. Name Value Weight Re and Rd
Equity 22218792750.00 44.58% 18.21%
Net Debt 27626490057.00 55.42% 7.80%
Total 49845282807.00 100%
12.45%
Risk-Free Rate 4.95%
Beta 1.2102
Market Return 7.17%
Equity risk premium 10.96%
CAPM 18.21%
Risk free rate 6.44%
Average credit spread 4.15%
Tax rate 25%
Required Rate of Return 7.94%
Average of corporate tax rate and BSRMSteels YOY implied tax rate
(Risk Free Rate +Credit Spread)*(1-Tax Rate); this is the cost of debt for BSRMSteels
Calculated
Average of DSEX Return ( 6years). It seemes very lower market return. Therefore we will directly use equity risk remium to calculate CAPM
Required Rate of Return (Debt) Details
T-bill 5year rate
Bangladesh bank
Country default spreads and risk premium by Aswath Damodaran
This is the cost of equity for BSRMsteels Ltd
BSRM STEELS
Required Rate of Return (Equity) Details
1year T-bill rate
WACC
Shares outstanding 375952500 2014 2015 2016 2017 2018
Share price, 4th April 2019 59.1 Cash and cash equivalents 521092776 468886084 173417317 505247144 1019379483
Equity value, E 22218792750
Net debt, D 27,626,490,057 Short-term debt 17252850097 12847526725 17636668756 24262393500 24573463292
Tax rate, TC 25.64% Long-term debt 431897159 548388963 1251696088 1091223642 4072406248
Cost of debt, rD 7.67% Total debt 17684747256 13395915688 18888364844 25353617142 28645869540
Expected market return, E(rM) 7.17% Net debt 17163654480 12927029604 18714947527 24848369998 27626490057
Risk-free rate, rf 4.95%
Equity beta, b 1.210248472 Interest expense -486981060 -673131697 -367244216 -507117525 -2705588387
Cost of debt, rD? 2.33% 10.31%
Income before tax 1,510,680,374 2,593,948,797 3,678,512,777 1,381,719,934 2,569,825,540
Income tax expense -424,472,568 -512,071,634 -1,251,162,976 -312,281,861 -610,873,085
Implied tax rate 28.10% 19.74% 34.01% 22.60% 23.77%
Average tax rate 25.64%