Today trading big volume of share,Have you know any reason?How ever this is good time to enter to GLASS,Isn't it?
The price is after a dividend of Rs. 0.38. That means it is suffering from after dividend syndrome. The profit of the last quarter had been heavily affected by the increasing of electricity charges by CEB. The company cannot change agreed prices overnight for the increasing cost of raw materials or other inputs unless otherwise the same has been mentioned in the agreement with customers.
For all future sales they will consider all cost including increased amount of electricity cost. Hence, they will once again earn handsome profit being the sole player in the industry. They may look some ways to reduce cost too.
They have come here to make profit but not losses with the monopoly they have.
So, this price is a discounted price and I strongly feel good time to enter otherwise by weeks time we may have to purchase at Rs. 6 +
This is one of my favorite and I have a good quantity and do not want to dispose immediately.
See what they say as well as Asia securities say about Glass.What Company says
Piramal Glass Ceylon PLC (formally Ceylon Glass Company PLC) is a company with a rich history of over 60 years which was initiated by a group of Ceylonese entrepreneurs after the country gained political independence. The company began modestly but grew with the technical guidance received from Nippon Glass in Japan and subsequently with BGI, Thailand, initially manufacturing Amber quart bottles.
The company with its steady progress was recognized by the Colombo Stock Exchange in 1994 and thus became a listed company. The opportunity of coming under the umbrella of Piramal Group (A large Indian conglomerate and leaders in the manufacture of pharmaceuticals and glass containers – apart from real estate and more) in 1999, spurred the company to reach greater heights. This strategic alliance paved the way for the company to have a global footprint in the Industry.
As the Island’s sole manufacturer, Piramal Glass offers the entire moulded range of glass bottles for the Food and Beverages, Pharmaceuticals and Cosmetics and Perfume industries.
The infrastructure and overall competence endows the company with unique flexibility and a wider range with the capability to offer glass containers in different shapes and colours for the wine and liquor industry – irrespective of volumes.What Asia Securit says in their Research Report.
Piramal Glass Manufacturing N – LKR 5.40
The company is the sole glass manufacture in Sri Lanka who supplies
glasscontainers to thefood and beverages, cosmetics, perfumery and the
pharmaceutical sectors. The company at present virtually holds a
monopolistic position in the Local market with an approximately 97%
market share. Further, with their state of the art manufacturing plant in
Horana, coupled with the growing demand derived from the rapid
developments taking place within the Sri Lankan economy, the
company is likely to deliver better returns to its shareholders.