AlUFAB collected 230+ m LKR from its right issue done at 38. After the dilution, Per Share cash was more than Rs. 23 one year ago and now Company hold 138m Cash which is around Rs. 11 per share and Net Assets of Rs. 24 per share. Even though company has a good NAV close to trading Price Company do not generate enough profits from operations due to in effective management company had.
New Management
New management of the company is Hayleys so we can expect company to generate cash utilizing Rs. 24 Assets it has per share with healthy Revenue and GP margins.
I Believe ALUFAB as a good future gem which is about to turn around with ever Solid Dammika Pereras management.
Also we do not need to think a lot a simple 12m Profit per quarter will generate an EPS of Rs. 4 per share so taking a risk will be paid off for 2 to 3 year midterm investors. There can be a right issue but huge cash reserve says Right issue will not happen but who knows what Hayleys expects from this company.
Kindly invite you to discuss pros and con of this company but to be frank I couldn’t understand their actual business yet. For sure It is something relevant for construction.
Few Examples
I have seen companies such as LFIN , VFIN and allother DP companies doing great every year. So I expect allocating few share early stage at NAV price will be paid off ??????????????