First of all this analysis is a routine exercise for me, and for my information, which I would like to open for a fruitful discussion. NOT A BUY, SELL OR HOLD RECOMMENDATION.
----------------------------------------------------------------------------------------------------
I did some analysis on the earnings of Motor Sector shares, as there is some enthusiasm on certain shares in the sector like COLO and UML. Further this is the sector that most analysist's expect with very promising results in the immediate future.
This valuation is only on Earnings and PER based. But the counters which are attractive on PER basis in this analysis are also with fair PBV ratios.
I.e.: DIMO net asset value is Rs.522.31 as at 30th June 2011. Current PBV ratio is 2.488. But there last asset revaluation was in 2008, prior to the dawn of peace. So the current asset value should be substantially more as they have considerable land bank in Colombo. COLO net asset value is Rs.168.55 and PBV ratio is 2.9 and again with no latest re-valuations.
Please share your information and knowledge on these shares.