Assessing the stock market torment of BRAC EPL Investment Limited in term of Revenue escalation

Abstract

BRAC EPL Investments Limited is a merchant bank and subsidiary of BRAC Bank Limited. It commenced operation under a new management team obtaining merchant bank license from the Securities and Exchange Commission (SEC) and became BRAC EPL from EPL in August 2009. BRAC Bank holds 76% of the equity of BEIL, the rest held by a diverse group of international fund managers and capital market institutions at home and abroad. BEIL delivers a whole range of investment banking services including traditional merchant banking activities. It has already established itself as one of the top portfolio managers, serving more than 4600 clients country-wide from seven locations. In discharging professional services, BEIL makes concerted efforts to show ZERO tolerance towards non-compliance and emphasizes strict adherence to regulatory guidelines. The report focuses on “Assessing the stock market torment of BRAC EPL Investment Limited in term of Revenue escalation”. BEIL commenced its business just 4 years back. So it can be said that it is comparatively a new organization in the market. After only two years of its inception, the company faced the biggest capital market turbulence in the history of financial markets of Bangladesh. Its upward trend of net income got broken as soon as the capital market storm hit. The report is enriched in financial performance analysis of BEIL consisting of comparative balance sheet, comparative income statement, some important ratios, critical analysis of profitability, future projections etc. The financial performance analysis of BRAC EPL Investments Limited showed a significant deviation in the year 2011 in almost all the analyses. And in most the cases, such impact continued in 2012. So, we can say the capital market distress had a great impact on the profit growth of BRAC EPL. If 2011 were out of the picture the performance of the firm in terms of income shows a steady growth in both operating and total income. BRAC EPL faced a negative net profit only in 2011, which was the year of the capital market distress. One prerequisite of having a healthy investment climate in an economy is the availability of financing facility for the existing and potential borrowers. The two major sources of finance in any country are the banks and the capital market. So it is very important for BRAC EPL Investments Limited to cope up with the turmoil of capital market of Bangladesh to have a consistent profit growth