Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Andhra Bank. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Andhra Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
Andhra Bank's earnings are expected to grow significantly at over 20% yearly.
Andhra Bank's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Andhra Bank's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. J. Packirisamy has been Managing Director, Chief Executive Officer and Director of Andhra Bank since September 21, 2018. Mr. Packirisamy served as Deputy Managing Director of Mid Corporate Group at State Bank of India until September 2018. Mr. Packirisamy joined State Bank of India as a Direct Recruit Officer, Probationary Officer in 1984. Previously, he has also held positions of the Chief General Manager (Mid-Corporate Group) at the Corporate center and Chief Executive Officer of Bank’s Frankfurt Office, General Manager of CAG, Chennai Branch. He Studied B.Sc. in Chemistry and MBA in Finance.
Insufficient data for J. to compare compensation growth.
Insufficient data for J. to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Andhra Bank management team is less than 2 years, this suggests a new team.
CEO, MD & Director
M. Babu Prasad
CFO & GM
Interim Compliance Officer & Company Secretary
BR Head & GM
Chief Vigilance Officer
Chief Risk Officer
Company Secretary & Compliance Officer (Leave of Absence)
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the Andhra Bank board of directors is less than 3 years, this suggests a new board.
Are You Considering Liquidity Risks For Andhra Bank (NSE:ANDHRABANK)?
After the Financial Crisis in 2008, a set of reforms called Basel III was created with the purpose of strengthening regulation, risk management and supervision in the banking sector. … These reforms target banking regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … Insufficient liquidity coupled with high levels of leverage may place Andhra Bankin a risky position in the face of adverse headwinds.
Can Andhra Bank (NSE:ANDHRABANK) Survive The Next Financial Crisis?
The risk in investing in a small-cap business, accentuated by financial industry regulations, makes small-cap financial stocks like Andhra Bank (NSE:ANDHRABANK) a complicated investment. … ANDHRABANK operates in the financial services industry in IN with a market capitalisation of ₹39.20b. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Andhra Bank to vulnerabilities.
Three Metrics For Andhra Bank (NSE:ANDHRABANK) You Should Know
Post-GFC recovery brought about a new set of reforms, Basel III, which was created to improve regulation, supervision and risk management in the financial services industry. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like Andhra Bank to vulnerabilities. … Poor liquidity and high leverage could place Andhra Bank in a precarious position at the face of macro headwinds.
Should You Be Worried About Andhra Bank’s (NSE:ANDHRABANK) Liquidity?
Check out our latest analysis for Andhra Bank NSEI:ANDHRABANK Historical Debt Jun 1st 18 Is ANDHRABANK's Leverage Level Appropriate? … A high level of leverage may subject the bank to higher risk and lowers its ability to pay back its debtors. … Relative to the prudent industry loan to deposit level of 90%, Andhra Bank’s ratio of over 71.64%is appropriately lower, which positions the bank cautiously in terms of liquidity as it has not disproportionately lent out its deposits and has retained an apt level of deposits.Next Steps: Even though the bank has upheld a high level of liquidity, its elevated level of debt compared to its equity may impact its ability to pay back its large group of debtors in times of adverse conditions.
How Did Andhra Bank's (NSE:ANDHRABANK) 1.81% ROE Fare Against The Industry?
Check out our latest analysis for Andhra Bank Breaking down Return on Equity Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Andhra Bank’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NSEI:ANDHRABANK Last Perf Apr 25th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.
Interested In Andhra Bank (NSE:ANDHRABANK)? Here's How It Performed Recently
Check out our latest analysis for Andhra Bank Was ANDHRABANK's weak performance lately a part of a long-term decline? … For Andhra Bank, its most recent trailing-twelve-month earnings is ₹2.07B, which, relative to last year’s figure, has declined by a substantial -62.89%. … This suggest that Andhra Bank has been ramping up expenses, which is hurting margins and earnings, and is not a sustainable practice.
Andhra Bank (NSE:ANDHRABANK): Risks You Need To Consider Before Buying
Based on this beta value, ANDHRABANK appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … ANDHRABANK, with its market capitalisation of ₹39.28B, is a small-cap stock, which generally have higher beta than similar companies of larger size. … I test ANDHRABANK’s ratio of fixed assets to total assets in order to determine how high the risk is associated with this type of constraint.
Can Andhra Bank (NSE:ANDHRABANK) Survive The Next Financial Crisis?
Low levels of leverage coupled with sufficient liquidity may place Andhra Bank in a safe position in the face of adverse headwinds. … See our latest analysis for Andhra Bank NSEI:ANDHRABANK Historical Debt Feb 8th 18 Why Does ANDHRABANK's Leverage Matter? … Compared to the appropriate industry loan to deposit level of 90%, Andhra Bank’s ratio of over 70.02% is sensibly lower and within the safe margin, which positions the bank cautiously in terms of liquidity as it has not disproportionately lent out its deposits and has retained an apt level of deposits.Next Steps: Andhra Bank ticks all the boxes for operational prudency in terms of liquidity and leverage.
Andhra Bank (NSE:ANDHRABANK): Can It Deliver A Superior ROE To The Industry?
Check out our latest analysis for Andhra Bank Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Andhra Bank’s equity capital deployed. … Since Andhra Bank’s return does not cover its cost, with a difference of -12.37%, this means its current use of equity is not efficient and not sustainable.
Andhra Bank (NSE:ANDHRABANK): Does -62.89% Earnings Drop In A Year Reflect The Long-Term Trend?
When Andhra Bank (NSEI:ANDHRABANK) released its most recent earnings update (31 March 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … For Andhra Bank, its most recent trailing-twelve-month earnings is ₹2,071.0M, which, relative to the previous year's figure, has sunken by a non-trivial -62.89%.
Andhra Bank provides a range of banking products and services in India. The company operates through Treasury Operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. It offers deposit products, including savings and current accounts, and term deposits; and loans, such as housing, vehicle, educational, personal, professional, property overdraft and term, and reverse mortgage loans, as well as loans against gold, rent receivables, National Savings Certificates, Kisan Vikas Patra, life insurance policies, and other securities. The company also provides credit facilities comprising working capital finance, export import finance, working capital demand loans, bill finance, project and infrastructure finance, term finance, corporate loans, equipment finance, bridge loans, advances against share deposits, bank guarantees, and letters of credit, as well as forward contracts. In addition, it offers credit, debit, and prepaid cards; DMAT services; payment services; life, non-life, and health insurance products; mutual funds; project appraisal and loan syndication services; NRI banking services; and services to micro, small, and medium enterprises. Further, the company provides credit for agriculture activities; women empowerment schemes; and various special schemes; and Internet and mobile banking services, as well as operates rural self-employment training institutes. As of March 31, 2017, it had 2,911 branches; 4 extension counters; 34 satellite offices; and 4,009 ATMs/BNAs/CRs in 26 states and 3 union territories, as well as 1 representative office at Dubai. The company was founded in 1923 and is headquartered in Hyderabad, India.
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