The net profit has dropped in the recent quarters due to charcoal shortage in the local market. Due to the shortage of charcoal locally, the company was compelled to import 55% of its total requirement.
In my opinion coconut shell charcoal shortage (coconut shortage) is due to heavy rain in the country in the last quarter. The net profit should increase in the coming quarters once they get enough raw material locally.
Activated carbon demand is increasing every year in the world.
Currently it's trading on PER around 7-8. NVPS is 96/-. It should break minimum 200/- if they can able to get EPS 5.0 in the next quarter. Currently trading between 155 - 160. Isn't it attractive at this level?
Your opinion please!