Sri Lankan company. The new entrant to the Milanka Price
Index has interests in porcelain and ceramic tiles, bathware
and newly to paints and allied products.
The group reported a mere 2.0% YoY growth in 1QFY12 to
the tune of LKR 391.5mn as profit attributable to equity
holders. The 4Q trailing PE is currently at 11.0X at the price
of LKR142.50. The revenue at LKR 1.4bn in 1QFY12 was a
circa 19.0% above the LKR 1.2bn recorded in 1QFY11. The
quarterly EPS of LKR 3.53 for the first quarter was marginally
above the LKR 3.45 recorded in the corresponding period in
the previous year.
RCL’s first quarter investments arrayed to be a 100%
takeover of Ever Paint & Chemical Industries on 1st April
2011 at a total value of LKR125 mn and a 20.03% stake of
Lewis Brown & Company Ltd (holding company of Delmege
Forsyth & Co. Ltd) on 16th June 2011 for LKR621.2 mn. RCL
too has an interest in Hayleys PLC with a 5.07% holding as at
30th June 2011.
Thus on the light of a favourable economy, RCL primarily
anticipate to focus on growing retail operations both local
and overseas. In addition the tile sector star hopes to
further embark significantly into other trade and service
sectors to set an indelible local footprint. Hence, RCL’s
robust business model expects to generate forward PE
multiples of 8.0X and 5.2X in FY12 and FY13 respectively,
solely on recurring earnings.
Download report at http://colombostockwatch.com/2011/09/royal-ceramics-lanka-interim-update/