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Sri Lanka Equity Forum » Stock Market Talk » DIMO's 9 Month EPS dec 2010 was Rs. 167.47 ???

DIMO's 9 Month EPS dec 2010 was Rs. 167.47 ???

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Pira


Equity Analytic
Equity Analytic
Hi
DIMO's 9 Month EPS dec 2010 was Rs. 167.47. Is that coorect? and it makes in 3Q a profit of 111.91 ? can it hit this result in this quater?

When we look the EPS for 3Quaters the PE is under 10?
Is something wrong with DIMO that the share price is so low?

Thank you for your expertise

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@Pira wrote:Hi
DIMO's 9 Month EPS dec 2010 was Rs. 167.47. Is that coorect? and it makes in 3Q a profit of 111.91 ? can it hit this result in this quater?

When we look the EPS for 3Quaters the PE is under 10?
Is something wrong with DIMO that the share price is so low?

Thank you for your expertise

I am not an expert. But here is what I think. DIMO is the leader in Motor Sector. It was getting ready to run and went up to Rs 1700 when the Motor Tax issue was announced which broke the trend. As you pointed out their 3q eps is 167. Even with a reduced eps of half last quarter and one next ( tax issue will possibily have some impact ) this is still clearly over Rs 200 eps company worth much more attention.



Below is a post I made before which might be useful


First of all considerign its financials

*3Q EPs 167
* March quarter EPS would not be affected due to the tax issue
* Even if they report an EPS of around 50 for March, annual would be around Rs 220



Also note the ROE has improved from 5.25% to 40.71% from 2009 December to 2010 December period.

Dimo group has diversified its business segments into the areas of Power Engineering, Building Technologies, Power
Systems, Agricultural Machinery, Lighting Systems and Water Management Solutions and BIO Med devices. So its revenie is not only dependent of vehicles. Though it core business is vehicle sales which represent prestigious name as Benz, TATA, Chrysler it also markets other brands as Bosh, Komatsu, Siemens, Michelin, Osram, and Mahindra & Mahindra.


It has a wide range of vehicle from DIMO batta to High end MERCs. Also TATA carries passenger vehicle and most probably will introdude the cheap Nano at some point.

Assuming this tax rates hit 30% of vehicle sales/revenue I think this is atleast an Rs 40-50 EPS per quarter company in the medium term. So this is still undervalued even at that rate.


Given a modest PE of 10 this share is to me worth RS 2000-2200 when considering the crap that goes up to unbelievable amounts. Note I am not givign target price expectation but saying it is worth comparatively that amount.

DXB2252


Senior Equity Analytic
Senior Equity Analytic
well said,this should be worth over 2000

Capt

Capt
Senior Equity Analytic
Senior Equity Analytic
A +ve rep from me.
Good post. Compared to other shares going high and high without any base value DIMO should be selling at much higher price. Analysis on valuable companies like this should be encouraged in forums and these are always safer shares for beginners.

$$$


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
yeah Dimo is at a bargain but we need to keep a close eye on how the taxes will impact also according to many people consumer spending might face a crunch in the not too distant future if it has not already happened .... Eg: poultry though it will eventually pick up was hit by external factors and everyone including myself was expecting better results Sad....just because a particular sector or company has done well in the last quarter or quarters we need to look at how there top line and bottom line is shaping up in the future and how external factors can have an adverse effect on future performances

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics
@$$$ wrote:yeah Dimo is at a bargain but we need to keep a close eye on how the taxes will impact also according to many people consumer spending might face a crunch in the not too distant future if it has not already happened .... Eg: poultry though it will eventually pick up was hit by external factors and everyone including myself was expecting better results Sad....just because a particular sector or company has done well in the last quarter or quarters we need to look at how there top line and bottom line is shaping up in the future and how external factors can have an adverse effect on future performances

Correct $$$ Smile

Capt

Capt
Senior Equity Analytic
Senior Equity Analytic
Can you all smell something.....?
Trading in fairly high quantities... May be the report will be released soon...

Pira


Equity Analytic
Equity Analytic
@Capt wrote:Can you all smell something.....?
Trading in fairly high quantities... May be the report will be released soon...

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