CENTRAL INDUSTRIES PLC (CIND.N0000)

LHW wrote:The move comes after water pipes and fittings were listed under the import controls gazetted last month, tanking the NWSDB’s plans to recommence *issuing new connections following funding by the Asian Development Bank (ADB) and assistance from the Central Bank of Sri Lanka (CBSL) to source dollars needed to import water meters for new customers.

https://www.themorning.lk/economic-crisis-new-water-connections-blocked-by-import-bans/

LHW wrote:The move comes after water pipes and fittings were listed under the import controls gazetted last month, tanking the NWSDB’s plans to recommence *issuing new connections following funding by the Asian Development Bank (ADB) and assistance from the Central Bank of Sri Lanka (CBSL) to source dollars needed to import water meters for new customers.

https://www.themorning.lk/economic-crisis-new-water-connections-blocked-by-import-bans/

ErangaDS wrote:CIND has just reported the best earnings in the history of the company
upside can be expected

K.R wrote:How attractive is Central Industries $CIND at current MM?

$CIND is currently trading at 2.77 per (41% undervalued compared to the industry per)

Based on pbv, ev/ebitda , adjusted per (ttm) & navps,

Fair Value ~ 222
Upside ~ 271%

Here’s the valuation breakup as of 3Q22,

1. PBV

Median pbv of SPCSECGP (capital goods) is 1.9% (as of 31/12/2022)

$CIND is comparatively illiquid hence after a -10% illiquidity discount, implied multiple = 1.68X

This gives an FV of LKR 222 based on the implied pbv

2. EV/EBITDA

Capital goods industry peers trade at a median of 8x ev/ebitda as of 31/12/2022

Pat/ebitda historical average is 54%; this translates $CIND eps ttm ~22 to 40.3 ebitda / share

After -10% illiquidy premium fv based on ev/ebitda = LKR 288

3. NAV &PER

$CIND bvps is 132.4 & eps ttm is 22 (as of 31/12/22)

Further, historical finance cost/revenue is ~1%, however due to heavy fx losses ttm finance cost has inflated to 820M (13% of revenue)

3. Cont.

After adjusting 13% finance cost to historical average (1%) new eps ttm is approx. 63

Based on the adjusted eps ttm $CIND currently trading at 0.95X per

$CIND fv at SPCSECGP per (3.90x) = 246

https://twitter.com/WidulDeelaka/status/1620871199520849922

Central Industries

CIND.N0000

Share Price 7 Day   1 Year   85.50 27.2%   -50.6%     Investor sentiment improves as stock rises 27% After last week's 27% share price gain to LK₨85.50, the stock trades at a trailing P/E ratio of 4.2x.  Average trailing P/E is 13x in the Building industry in Asia.  Total returns to shareholders of 127% over the past three years.

Ekanayake90 wrote:What is the best construction related company at CSE?
Compare all the others(Cement , Cable , Tile , Aluminum)with CIND , than you will have an answer.
PER @3 doesn’t reflects the true value of this magnificent company
CIND deserves at least 8+ PER in the short run