How about Glass as a long term investment?

otara · 1 How about Glass as a long term investment? Sat Aug 11, 2012 10:35 am

otara

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Will this fall drastically on XD? But still seems to be orders @ 5.20.

My Broker told it will be possible to collect around Rs. 5. with their 50% dividend policy there will be a guaranteed dividend yield more than 7%. Even though the energy issue is there from the beginning company has managed to perform with increased capacities. Only issue seems to be the Europe market... But they try to explore new markets to diversify and this will be a huge plus to consider.

Pls give your valuable inputs on company's prospects in coming year Very Happy

K.Haputantri · 2 Re: How about Glass as a long term investment? Sat Aug 11, 2012 11:05 am

K.Haputantri

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Their foreign currency loan servicing is a matter for concern given the ever weakening rupee but export income may partially offset the losses from exchange rate increses.

If they manage to keep hightened energy costs under control prospects are good.

Also must check on the expiory date of BOI tax consessions and what impact it would have on their bottomlines there after.

Slstock · 3 Re: How about Glass as a long term investment? Sat Aug 11, 2012 11:24 am

Slstock

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K.Haputantri wrote:Their foreign currency loan servicing is a matter for concern given the ever weakening rupee but export income may partially offset the losses from exchange rate increses.

If they manage to keep hightened energy costs under control prospects are good.

Also must check on the expiory date of BOI tax consessions and what impact it would have on their bottomlines there after.

All very good points to consider.

Might be a good move by glas to atleast block out part of their land and sell to settle loans. They can increase capacity by adding another furnace if needed b( they have the space) but seems glas is now looking at higher end, high profit products and markets. As this is a foreign company the dividend will be maintained at 50%. So even if they hold this earning within the next year at a 7% dividend yield this is a good small prices stock.

BTW tax will be 10% from the time of BOI agreement expiry for few years. So it will be not that bad of a hit .