who recommend you to buy ODEL?
its trading around 17 or 18 forward PE ratio
Dear Mark ! no offence but you should read more !! In the business world where all da strategies change time to time , we all should read articles and should be updated. PE is no longer a valuable value in the modern investment strategies. and PE doesn't give any indication whether the share s good or not. This ratio started to use in 90s effectively but IBM proved in 2003 that this is a fail way of measuring whether the shares s over/under valued.
anyway if u google, u will managed to gain more information..
Yes I agree with you, this share was recommended by some members in this forum, I think 4 weeks back.
You need to under stand the basic values of the share, before buying.
Sorry to say the recommended post was transferred to the expert section.
Joke of the year.
Some other guys also promoting some useless shares in this forum.
y dont u teach us the negative values of ODEL.N ?? LOL..
Here re the positive values of ODEL :
ODEL reported moderate earnings growth for 1HFY12, +21% YoY to Rs. 122.2m,supported by 1) steady top line growth (+13% YoY) boosted by increased sales volumes across all brands; and 2) a significant reduction in income tax expenses (-51% YoY), following a decrease in the corporate tax rate from 35% to 28% coupled with a reversal in deferred tax provision. Net margins remained flat at 7%.
Group turnover reached Rs. 1.7bn in 1HFY12, +13% YoY, driven primarily by increased sales volumes as a result of stable growth in same store sales coupled with contribution from newly opened stores in Kandy and Wattala. Gross margins remained broadly stable during the quarter at 39% (vs. 38% in 1HFY11), while operating margins dipped slightly to 11% (vs. 13% in 1HFY11) due to an increase in both administrative and distribution expenses, +30% YoY and 19% YoY respectively. Management attributes the increase in operating expenses to 1) higher promotional and advertising costs related to new store openings; 2) investment in knowledge capital (as part of the company’s strategy of benchmarking itself against international competition in terms of store layouts, service levels, ambience, etc); and 3) an increase in head count, in-line with the expansion in store count.
Finance expenses rose sharply in 1HFY12, +53% YoY to Rs. 44.7m, as the company incurred additional bank borrowings in order to fund its store expansion.
The company plans to further extend its retail reach over the medium term through a series of well-timed store openings in urban and semi urban cities in Colombo and outstation cities. It intends to open three new stores during the year, taking its total store count to 19 outlets by end Dec 2011. Despite its relatively aggressive capital expenditure plans, ODEL maintains a healthy balance sheet with Rs. 15m in cash and bank balances as at 1HFY12. Its gearing ratio was 74% as at end September 2011.
ODEL’s 1HFY12 inventory turnover reduced to 1.7x (lower than the FY11 value of 2.5x) as the company has begun to hold inventory for its two new Kandy stores, which are scheduled to be opened later this year. Its receivables collection period amounted to 21 days in 1HFY12, while its payment period was 56 days, taking its cash operating cycle to ~183 days.
Project Sri Lanka’s fashion retail market to record a strong growth trajectory over 2012-16E, driven by favourable operating conditions in the country. Domestic demand should see a sharp upturn, as rising disposable incomes and higher affluence levels
ODEL has, in our view, successfully established a unique brand identity in Sri Lanka’s highly fragmented fashion retail industry, and hence does not have any close competitors in the overall market in terms of scale, ambience, and quality/range of clothing offered. As such, we believe it should be a prime beneficiary of the projected industry growth
Given the company’s strong growth potential, we conservatively project FY12E full year earnings to reach Rs. 262m (+25% YoY), with a strong pickup in sales volumes during 3QFY12 which is typically the strongest quarter for the company. This translates to an FY12E EPS of Rs. 1.81.
At a price of Rs. 32.10, ODEL is trading at a FY12E P/E multiple of 17.8x, at a 34% premium to the FY12E sector average of 13.3x. We believe a slight premium to the sector is warranted, given the company’s superior competitive positioning in Sri Lanka’s fast growing fashion retail market.
Source : ( JKSB report + Own )
please enlighten me with negative values.. so we can discuss directly rather than actin like kids and posting "wannaB" comments.