DIPD - seems undervalued

rainmaker · 1 DIPD - seems undervalued Thu Feb 07, 2013 6:44 am

rainmaker

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Revenue has grown strongly in the previous qtr. The market cap is 6.3 B and the revenue reserves in the balance sheet is 5B -> seems undervalued by a quite a bit

Unfortunately the stock is not very liquid as the top shareholders are Hayleys associated - Hayleys / Haycarb/ volanka.

The only real foreigner is Promar - Italian fund.

The profit looks better than more expensive shares. Does anyone know Symphony capital is associated with? What do you guys think?

sriranga · 2 Sri Lanka Dipped Products Dec net up 170-pct Thu Feb 07, 2013 12:06 pm

sriranga

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Feb 07, 2013 (LBO) - Profits at Sri Lanka's Dipped Products Plc, which has interests in glove making and rubber farming rose 170 percent to 407 million rupees in the December 2012 quarter from a year earlier.

The group reported earnings of 6.81 rupees per share for the quarter. For the nine months to December the group reported earnings of 17.35 rupees per share on total profits of 1.03 billion rupees, down from 1.7 billion rupees a year earlier, in interim accounts.

Last year's profits were boosted by one-off incomes.

Dipped Products stock closed at 106 rupees Wednesday, down 2.0 rupees.

The group said revenues rose 20 percent to 5.8 billion rupees in the December quarter while cost of sales rose at a slower 15 percent to 4.72 billion rupees, allowing gross profits to grow at a faster 46 percent to 1.16 billion rupees.

The firm produces gloves for the international market from Sri Lanka and Thailand. The group also has rubber plantations giving it a hedge on raw material price changes.

The firm said out of nine month revenues of 17.3 billion rupees, domestic manufacturing revenues grew 6 percent to 6.6 billion rupees, Dipped Products Thailand brought 1.8 billion rupees and tea and rubber plantations 7.1 billion rupees.

Its Italian marketing unit ICOGUANTI S.p.A had brought 3.1 billion rupees in revenues up 4.0 percent.

"We are continuing to see the impact of the economic slowdown in Europe," managing director Mahesha Ranasoma said.

"However, as the figures indicate, our focused efforts to sustain sales amidst demand volatility are proving to be effective."
http://lbo.lk/fullstory.php?nid=1762866845