Deep fucking value of GBIME. And why you should buy it.

GBIME costs at the moment around Rs450.

It is cheaper NBB ADBL NBL, which are also fine banks but the problem arises when speculating why GBIME is cheaper then these banks.

The thing to be noted beforehand is that GBIME has the 2nd highest profit of all banks including RBB. It is only behind NABIL but the LTP of NABIL is around 1400. That is almost more than 3x of GBIME.

Now most of the keen investor and traders will be quickly able to point out the fact that NABIL simplicity is better then GBIME in the sense that on average NABILE provides 2x of what GBIME offers in terms of bonus share, the bread and butter of what gives a share its value.

Now the message that we want to convey is that the reason as to why GBIME provides ½ the bonus share then that of NABIL.

And the fact is that GBIME has too many shares in the market. This limits the amount of bonus share GBIME can issue in the market as 20% bonus on GBIME needs more value to in order to cover much more share/investors.

Sure there are other factors such as but not limited to reserve but we can clearly see that GBIME is still not to be shy of as even in these factors it does excellent.

Now from our speculation as a company starts to do well it wants its stock price to reflect its deep value. So we believe that sooner or later GBIME will short its shares in the market as it will stop needing too much market capital. This will allow GBIME to provide better returns to investors but most importantly raise its market value to at the very minimum RS 700. Buy and **HOLD**.

Sources used : [No.1 online financial portal of Nepal with a complete information of Stock market.](https://www.sharesansar.com/)

[Share Market Newsportal | Nepse Chart | Nepal Stock Exchange | Technical & Fundamental Analysis Research Tool](https://www.nepsealpha.com/)

[Net Profit of Commercial Banks in Nepal [Updated]](https://www.investopaper.com/news/net-profit-of-commercial-banks-in-nepal/)

More at: r/NepalStock by 72Fk

13 comments
  1. GBIME 22 arba capital bhako bank ho yar yeti bhaye pachi suru ko checklist batai out huncha. Nepse ma paisako thulo source naainjel samma yesto company haru herda pani nahere huncha last time korea basne daju harule ramro pump garnu bhayeko thiyo. Nirmal pradhan le 1 crore kitta kinda ta 2 3 times hudaina bank ko share teyti thulo size bhaisakeko cha bank ko. Be practical stay rational

  2. GBIME is strong bank but the bank still hasn’t gone over boomer style management – most banks in Nepal have this. NICA is exception and good growth is because of relatively young workforce. As of now, NABIL is trying to emulate this and now hiring top level management. NABIL barely used to do this.

    GBIME EPS is around 19 and likely to give div at around 14-16?NBL has EPS of 25 and distributable EPS is even higher. Book value is highest in sector. And limited supply. NBL is better option.

    GBIME is trying to merge BOK as per news. This might give them competitive advantage. Their mobile/internet banking strategy is at least upgrading and better compared to others.

    Many people miss this, but GBIME is probably the only bank in Nepal with office outside Nepal i.e Australia, India, Japan etc. I’m not sure if it working well for them though.

  3. Same old problem with GBIME that is too much floating shares. Low paid up cap bhako bank with good earnings will give better return hola, with speculation for merger to fuel prices time and again. NABIL maintaining profit with increase in dilution every year, which GBIME has not been able to. GBIME is great but capital gain lai speculativw stocks will give you better return.

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