A quick overview based on Q-2 of Hathway
* A PBT loss of 40,820,807
* Net Worth per share 76.08 ( PB more than 13)
* A loss, even after most of the Listed Shares are routed via OCI based on PY AR
* Admin expenses have ( Y-O-Y) doubled
*Not only as per Consolidated but as per Standalone Financial also #hathy is in loss
*The Finance Cost seems to bring the pain, Don’t be surprised if the right issue comes
*There has been an increment of value of shares held, special Thanks to the recent listing of #NWCL
On first look, it seems the loss is due to high purchase cost, If we interpret it that way we could be wrong, If we want to do an analysis, we have to ignore Purchase cost, as it is for newly purchased shares, ( lack of detailed financials ), so what should we look for
So we should look for
*Change in Value of Investment
*Finance Cost
*Administrative expenses
*Classification of OCI shares
*Investment in securities
*Financial Liabilities (Here loans seem to be an upward trend, which must be tracked )
*check the Annual report to see the investment
Some Quickes
– Don’t rely solely on PE & EPS.
– Also Consider the price-to-book value in investment companies.
– Check investments made by sister concerns.
– Always review consolidated financial
– For listed stocks, closing rate of #NEPSE as per auditors for year-end valuation
