ODEL releases 3Q11 results on 31st Jan 2011

cse.alpha · 1 ODEL releases 3Q11 results on 31st Jan 2011 Mon Jan 31, 2011 2:39 pm

cse.alpha

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ODEL releases 3Q11 results on 31st Jan 2011

A few points:
* 3Q11 net profit of Rs76 mn - based on 145 mn shares, 3Q11 EPS = Rs0.5
- YoY EPS growth is misleading as land sale boosted FY10 profits
- December quarter is usually best for retailers; assuming possibly optimistic forward annual EPS of Rs2, forward PER at Rs45 is over 20x - no sale there !

* Debt has increased sharply recently, with usage of IPO proceeds to acquire land in Battaramulla, and steep increase in inventories

* Phoenix Ventures and De Soysa family who got shares in private placement before IPO at Rs15, seem to have exited

***

ODEL released its results at around 1 pm on 31st Jan 2011. The CSE should really not permit companies to release corporate results during trading, as the news may be material to investors. Else they should suspend share from trading in the event of results being released during trading hours.

mono · 2 Re: ODEL releases 3Q11 results on 31st Jan 2011 Mon Jan 31, 2011 2:45 pm

mono

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i'm not impressed as well. ODEL was jacked up by brokers, now it'll be difficult to sustain these prices.

salt · 3 Re: ODEL releases 3Q11 results on 31st Jan 2011 Mon Jan 31, 2011 3:03 pm

salt

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I too could avoid the trap. I saw couple of intereted guys are pushing it.

ODEL can not make miracles... its a retail business and can grow organically

Slstock · 4 Re: ODEL releases 3Q11 results on 31st Jan 2011 Mon Jan 31, 2011 3:04 pm

Slstock

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cse.alpha wrote:The CSE should really not permit companies to release corporate results during trading, as the news may be material to investors. Else they should suspend share from trading in the event of results being released during trading hours.

Agreed. Best to list before or after market. Distraction can play with sentiments. ( positive or negative)

Bollinger · 5 Re: ODEL releases 3Q11 results on 31st Jan 2011 Tue Feb 01, 2011 1:40 am

Bollinger

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That is completely true...results should not be posted during trading hours because investors aren't able to evaluate the financials thoroughly

tubal · 6 Re: ODEL releases 3Q11 results on 31st Jan 2011 Tue Feb 01, 2011 8:10 am

tubal

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cse.alpha wrote:
- YoY EPS growth is misleading as land sale boosted FY10 profits

I agree with everything you say, except this one point. It was actually last year that they had a huge boost from extra ordinary items. This year it has actually dropped (86 million last year vs 24 million this year). So operating profit growth is actually a bit healthier than it looks. But this is not to be interpreted as a buy recommendation from me.

Last edited by tubal on Tue Feb 01, 2011 8:57 am; edited 1 time in total (Reason for editing : typo)