* I think company has benefitted from both internal factors as well as external factors during last four quarters. As company was in the red for a long period, now they seem to be having good internal controls. Externally, most of the factors are favorable to them. Their main raw material "Rubber" prices are adjusting downwards in each auction. Due to rupee depreciation, now they are more competitive in international market. They have better access to USA market, which is their main export destination due to inclusion of Sri Lanka in the US GSP program in last year.
* As number of shares in the market is less than 1 million shares (including all shares except for the controlling share holder), during last year it was highly speculative. From Rs. 28/- in march 2011, it was taken above Rs.50/- within two months with no fundamental value. As a result most of the existing shareholders have collected the shares when it was above Rs.40/-. No one seem to be selling, as fundamental value of the counter is improving in every quarter.
* If company managed to maintain the same profitability as in June 2012 quarter, it will end the year with an EPS of Rs.13.00.
IF MARKET BECOME BULLISH AGAIN, WHERE IT CAN GO ?
Click the following link to download the PDF file in the research section.