DIMO is massively under valued

DIMO is the most under valued share at CSE. The turnover has increased 179% within this year.

EPS for 2010/ 2011 is Rs. 243.81

PE is 1,573/243.81 = 6.45 (severely under valued)

Simply amazing results.

At a PE of 10 (pessimistic approach) it should be trading at Rs. 2,400/=

At a PE of 15 (Reasonable) it should be trading at Rs. 3,600/=

There will not be any major impact on DIMO's sales due to increase in vehicle duties as most of DIMO's vehicles are over 1600CC.

I believe that this has got huge potential and a real run yet to begin.

Please do your own research as well.

There is high selling pressure at current price levels. That may be the reason why this is still at 1500 levels. Certainly good share to hold medium to long term.

More comments here also
http://forum.srilankaequity.com/t3796-dimo-stock-to-watch?highlight=dimo

institutional selling pressure that's the main reason for price stuck on this level,once it clear you cant buy even Rs.2000

Recent selling pressure on DIMO share has been from Thurston Investments (part of Aloysius and Perpetual group), who used to have almost 15% of DIMO.

Thurston stake in DIMO is down to 6% by 31st March 2011, having sold a large quantity to EPF towards the end of 2010.

Diesel and Motor Engineering PLC (DIMO) saw a very lucrative
financial year as the company’s net profit rose 755 percent to a
whopping Rs.2.1 billion against the previous year, financials released
to the Colombo Stock Exchange showed.
During the fourth quarter, the company’s post tax profit has rocketed
379 percent to Rs.664 million, when compared with the corresponding
quarter of the previous year.
The yearly Earnings Per Share (EPS) also increased significantly to
Rs.245 from just Rs.28.50, and the quarterly EPS to 76.30 from Rs.16 in
the corresponding quarter.
In the full year to March 2011, DIMO reported revenue of Rs.29.3 billion and for the last quarter Rs.8.5 billion.
“We did good business and its has resulted in such an increase,’ said Ranjith Pandithage, Chairman, DIMO PLC.
DIMO with its various segments including vehicle, vehicle parts and
spares, lighting and power tools, construction and material handling
machinery and electro mechanical and bio medical engineering segments
has had its largest contribution from the vehicle segment (Rs. 3.1
billion).
“There has been a growth in the Commercial Vehicle. DIMO Batta has
been the more popular of the commercial vehicles we have sold, and this
is due to the opportunities available in an emerging country,” said
Pandithage.
The recent increase in vehicle duty has not fazed the group, said
Pandithage, as the duty affects passenger vehicles which are not their
primary sub-segment. But he admitted the duty waiver by the government
during latter part of the last year had been helpful to produce such
good numbers.
Looking forward, DIMO expects to record larger revenue in the future.
“We look forward to servicing a growing country, especially the
commercial sector, and with new entrepreneurs entering the arena, we can
help sustain future growth” added Pandithage.
View original article at dailymirror.lk

I just bought 200 Qty @ Rs 1598.90~ Hopefully it rise further!

one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

deal wrote:one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

it is not wise to think long term in sri lanka. the laws and regulations can change even while you're in the toilet.
look at the changes to credit clearing rules. small investors must have lost a lot of investment by following those rules.
look at the vehicle taxes. they can change while the vehicle is unloaded at the port.

ridiculous, i can imagine how Zimbabwe is like now

deal wrote:one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

DIMO to go up big guys need to understand the value and enter.( 100 share price is too high for most of the retailers to be interested.) But they are normally adopting policy that make price low and collect slow. If few big guys need to enter price may soar upto 2500 else you have to wait patiently.
No need to worry this is like you are holding gold. It will come to correct price sooner or later.

I am also thinking why they can't announce 1:10 share split. Then it will be great price may go up even to 3000 levels...

ipoguru wrote:

deal wrote:one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

DIMO to go up big guys need to understand the value and enter.( 100 share price is too high for most of the retailers to be interested.) But they are normally adopting policy that make price low and collect slow. If few big guys need to enter price may soar upto 2500 else you have to wait patiently.
No need to worry this is like you are holding gold. It will come to correct price sooner or later.

I am also thinking why they can't announce 1:10 share split. Then it will be great price may go up even to 3000 levels...

There is an announcement by DIMO. It's not the share split. But script dividend.

20-May-2011 SCRIP DIVIDEND - DIMO

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO (Voting)
Date of Announcement:-20.05.2011
Proportion: - (01) One for (50) Fifty Shares
Financial Year: - 2010/2011
Shareholder Approval: - Not Required
AGM: - To be notified
Qty Offered:-174,048

Monster wrote:

ipoguru wrote:

deal wrote:one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

DIMO to go up big guys need to understand the value and enter.( 100 share price is too high for most of the retailers to be interested.) But they are normally adopting policy that make price low and collect slow. If few big guys need to enter price may soar upto 2500 else you have to wait patiently.
No need to worry this is like you are holding gold. It will come to correct price sooner or later.

I am also thinking why they can't announce 1:10 share split. Then it will be great price may go up even to 3000 levels...

There is an announcement by DIMO. It's not the share split. But script dividend.

20-May-2011 SCRIP DIVIDEND - DIMO

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO (Voting)
Date of Announcement:-20.05.2011
Proportion: - (01) One for (50) Fifty Shares
Financial Year: - 2010/2011
Shareholder Approval: - Not Required
AGM: - To be notified
Qty Offered:-174,048

I have non voting shares. Does this applicable to me. Does this means I will get one share for every 50 shares held? Please explain I am not familiar with Scrip dividend

ipoguru wrote:

Monster wrote:

ipoguru wrote:

deal wrote:one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

DIMO to go up big guys need to understand the value and enter.( 100 share price is too high for most of the retailers to be interested.) But they are normally adopting policy that make price low and collect slow. If few big guys need to enter price may soar upto 2500 else you have to wait patiently.
No need to worry this is like you are holding gold. It will come to correct price sooner or later.

I am also thinking why they can't announce 1:10 share split. Then it will be great price may go up even to 3000 levels...

There is an announcement by DIMO. It's not the share split. But script dividend.

20-May-2011 SCRIP DIVIDEND - DIMO

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO (Voting)
Date of Announcement:-20.05.2011
Proportion: - (01) One for (50) Fifty Shares
Financial Year: - 2010/2011
Shareholder Approval: - Not Required
AGM: - To be notified
Qty Offered:-174,048

I have non voting shares. Does this applicable to me. Does this means I will get one share for every 50 shares held? Please explain I am not familiar with Scrip dividend

How did you get non voting shares in DIMO.

Monster wrote:

ipoguru wrote:

Monster wrote:

ipoguru wrote:

deal wrote:one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

DIMO to go up big guys need to understand the value and enter.( 100 share price is too high for most of the retailers to be interested.) But they are normally adopting policy that make price low and collect slow. If few big guys need to enter price may soar upto 2500 else you have to wait patiently.
No need to worry this is like you are holding gold. It will come to correct price sooner or later.

I am also thinking why they can't announce 1:10 share split. Then it will be great price may go up even to 3000 levels...

There is an announcement by DIMO. It's not the share split. But script dividend.

20-May-2011 SCRIP DIVIDEND - DIMO

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO (Voting)
Date of Announcement:-20.05.2011
Proportion: - (01) One for (50) Fifty Shares
Financial Year: - 2010/2011
Shareholder Approval: - Not Required
AGM: - To be notified
Qty Offered:-174,048

I have non voting shares. Does this applicable to me. Does this means I will get one share for every 50 shares held? Please explain I am not familiar with Scrip dividend

How did you get non voting shares in DIMO. :scratch:

what I have in my portfolio is DIMO.N000 is that voting? I thought N means non voting.

ipoguru wrote:
what I have in my portfolio is DIMO.N000 is that voting? I thought N means non voting.

Jee.. N = voting, X= Non voting, R= Rights, B= Bonus, W = warrants
Where have u been dude

ipoguru wrote:

Monster wrote:

ipoguru wrote:

Monster wrote:

ipoguru wrote:

deal wrote:one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

DIMO to go up big guys need to understand the value and enter.( 100 share price is too high for most of the retailers to be interested.) But they are normally adopting policy that make price low and collect slow. If few big guys need to enter price may soar upto 2500 else you have to wait patiently.
No need to worry this is like you are holding gold. It will come to correct price sooner or later.

I am also thinking why they can't announce 1:10 share split. Then it will be great price may go up even to 3000 levels...

There is an announcement by DIMO. It's not the share split. But script dividend.

20-May-2011 SCRIP DIVIDEND - DIMO

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO (Voting)
Date of Announcement:-20.05.2011
Proportion: - (01) One for (50) Fifty Shares
Financial Year: - 2010/2011
Shareholder Approval: - Not Required
AGM: - To be notified
Qty Offered:-174,048

I have non voting shares. Does this applicable to me. Does this means I will get one share for every 50 shares held? Please explain I am not familiar with Scrip dividend

How did you get non voting shares in DIMO.

what I have in my portfolio is DIMO.N000 is that voting? I thought N means non voting.

N is voting shares! X is Non voting!

Anyways if you hold em till the date of scrip dividend then you will get the extra shares!

smallville wrote:

ipoguru wrote:
what I have in my portfolio is DIMO.N000 is that voting? I thought N means non voting.

Jee.. N = voting, X= Non voting, R= Rights, B= Bonus, W = warrants
Where have u been dude

Hope ipoguru is still new to the market.

godswen wrote:

ipoguru wrote:

Monster wrote:

ipoguru wrote:

Monster wrote:

ipoguru wrote:

deal wrote:one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

DIMO to go up big guys need to understand the value and enter.( 100 share price is too high for most of the retailers to be interested.) But they are normally adopting policy that make price low and collect slow. If few big guys need to enter price may soar upto 2500 else you have to wait patiently.
No need to worry this is like you are holding gold. It will come to correct price sooner or later.

I am also thinking why they can't announce 1:10 share split. Then it will be great price may go up even to 3000 levels...

There is an announcement by DIMO. It's not the share split. But script dividend.

20-May-2011 SCRIP DIVIDEND - DIMO

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO (Voting)
Date of Announcement:-20.05.2011
Proportion: - (01) One for (50) Fifty Shares
Financial Year: - 2010/2011
Shareholder Approval: - Not Required
AGM: - To be notified
Qty Offered:-174,048

I have non voting shares. Does this applicable to me. Does this means I will get one share for every 50 shares held? Please explain I am not familiar with Scrip dividend

How did you get non voting shares in DIMO. :scratch:

what I have in my portfolio is DIMO.N000 is that voting? I thought N means non voting.

N is voting shares! X is Non voting!

Anyways if you hold em till the date of scrip dividend then you will get the extra shares!

Thanks mate + rep from me

when is the scrip dividend date?

ipoguru wrote:

Thanks mate + rep from me

when is the scrip dividend date?

Dates are to be announced! They will upload another announcement on cse!

smallville wrote:

ipoguru wrote:
what I have in my portfolio is DIMO.N000 is that voting? I thought N means non voting.

Jee.. N = voting, X= Non voting, R= Rights, B= Bonus, W = warrants ;)
Where have u been dude ;)

I am quite young... only two months old. I hv mixed up W for voting and N for non voting. Any way glad that I did not make any loss because of that.

Monster wrote:
There is an announcement by DIMO. It's not the share split. But script dividend.

20-May-2011 SCRIP DIVIDEND - DIMO

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO (Voting)
Date of Announcement:-20.05.2011
Proportion: - (01) One for (50) Fifty Shares
Financial Year: - 2010/2011
Shareholder Approval: - Not Required
AGM: - To be notified
Qty Offered:-174,048

Are they trying to achieve multiple objectives?

Paying a dividend while improving the liquidity....

("Dambuluth gihin thalagoith maragena enna")

But i dont think this will have much impact on liquidity...

What's more theres a dividend announcement also...(Jst noticed..)

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO
Date of Announcement:-20.May.2011
Rate of Dividend: - Rs. 20.00 per share / Final Dividend
Financial Year: - 2010/2011
XD:-31.May.2011
Payment: - 09.Jun.2011
Share Transfer Book Open

Simply amazing...
Let the rally begin..

Monster wrote:

ipoguru wrote:

Monster wrote:

ipoguru wrote:

deal wrote:one of my portfolio full with dimo.i stated t o collect from 1700 .avg cost in 1645.this can value more than 2000 even new comer can understand .but no one interest .all are following low fundamental high risk shares.such as binn ,aluf,csf etc.trading shares are not a casino.but sri lankan law makes
and investors playing casino games using s.market.this is not suitable for value investors,thats
y dimo is not going up.

DIMO to go up big guys need to understand the value and enter.( 100 share price is too high for most of the retailers to be interested.) But they are normally adopting policy that make price low and collect slow. If few big guys need to enter price may soar upto 2500 else you have to wait patiently.
No need to worry this is like you are holding gold. It will come to correct price sooner or later.

I am also thinking why they can't announce 1:10 share split. Then it will be great price may go up even to 3000 levels...

There is an announcement by DIMO. It's not the share split. But script dividend.

20-May-2011 SCRIP DIVIDEND - DIMO

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO (Voting)
Date of Announcement:-20.05.2011
Proportion: - (01) One for (50) Fifty Shares
Financial Year: - 2010/2011
Shareholder Approval: - Not Required
AGM: - To be notified
Qty Offered:-174,048

I have non voting shares. Does this applicable to me. Does this means I will get one share for every 50 shares held? Please explain I am not familiar with Scrip dividend

How did you get non voting shares in DIMO.

He He DIMO must Issued non voting shares only for "ipoguru"
No mate DIMO.N0000 means voting shares. they don't have issued any non voting shares up to now.

dineshfernando wrote:DIMO is the most under valued share at CSE. The turnover has increased 179% within this year.

EPS for 2010/ 2011 is Rs. 243.81

PE is 1,573/243.81 = 6.45 (severely under valued)

Simply amazing results.

At a PE of 10 (pessimistic approach) it should be trading at Rs. 2,400/=

At a PE of 15 (Reasonable) it should be trading at Rs. 3,600/=

There will not be any major impact on DIMO's sales due to increase in vehicle duties as most of DIMO's vehicles are over 1600CC.

I believe that this has got huge potential and a real run yet to begin.

Please do your own research as well.

DIMO NAVPS is 482 rupees. Do you guys think this is a fair valuation in current context. Has their lands and buildings being revalued at current market price? If not NAVPS could also higher than the stated values.

san1985 wrote:What's more theres a dividend announcement also...(Jst noticed..)

DIESEL & MOTOR ENGINEERING PLC
Company ID: - DIMO
Date of Announcement:-20.May.2011
Rate of Dividend: - Rs. 20.00 per share / Final Dividend
Financial Year: - 2010/2011
XD:-31.May.2011
Payment: - 09.Jun.2011
Share Transfer Book Open

Simply amazing...
Let the rally begin..

Wow..., I bought 1000 yesterday, @ 1598 levels. Yeah let the rally begin BUT I am not going to sell because this share is like Gold