FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Asian stocks drift higher amid rate cut speculation; Japan lags
by Rare Yesterday at 6:17 am

» Bullish about a sustainable turnaround - CSE Chairman
by Rare Yesterday at 5:36 am

» Colombo Stock Market: Where are we heading?
by Rare Fri Sep 13, 2024 1:38 pm

» Impact of Elections on Colombo Stock Market Sentiment
by Rare Fri Sep 13, 2024 1:20 pm

» Post-election winners.
by Rare Fri Sep 13, 2024 12:47 pm

» Stocks on the Radar at CSE
by Rare Fri Sep 13, 2024 12:38 pm

» LVL Energy Fund worth to look into counter cheapest share under utilities sector
by rajithasahan Thu Sep 12, 2024 8:04 pm

» Bangladesh Stock market rose after the interim government took a raft of measures for the stock market.
by Rare Thu Sep 12, 2024 11:37 am

» Commercial Bank PLC: Impact of Bangladesh Crisis
by God Father Mon Sep 09, 2024 10:39 pm

» Colombo Stock Market: 2024 Prediction
by ChooBoy Mon Sep 09, 2024 7:13 pm

» ශ්‍රී ලංකාව: කොටස් වෙළඳපොළ විශ්ලේෂණය - 2024 සැප්තැම්බර්
by ChooBoy Mon Sep 09, 2024 5:10 pm

» LTL Holdings Limited IPO: Devil in Disguise
by Quibit Mon Sep 09, 2024 2:26 pm

» PickMe: Serious Legal Snags ahead of IPO Opening!
by agentnrox Mon Sep 09, 2024 10:43 am

» AI Answer to my Question on Present Stock Market
by Rare Sat Sep 07, 2024 7:12 am

» Stock Market Collapse: Madness or Adjustment?
by Rare Thu Sep 05, 2024 11:47 am

» HNB Bank emerged as the Best Overall Bank for 1H 2024
by Quibit Tue Aug 20, 2024 7:38 pm

» John Keells Holdings PLC share is worth LKR 17/= after Rights Issue and Sub-Division of shares
by Quibit Fri Aug 16, 2024 6:18 pm

» Will we see a post-election rally?
by Rare Fri Aug 16, 2024 2:32 pm

» ජෝන් කීල්ස් හෝල්ඩින්ස් (JKH) කොටසක මිල රු 17/= බැසීමට නියමිතයි!
by ChooBoy Fri Aug 02, 2024 10:20 am

» Ceylon Cold Stores PLC Net Profit Increased by 265%, in 1Q 2024,
by DeepFreakingValue Mon Jul 29, 2024 10:47 pm

» ඉදිරි ජනාධිපතිවරණයේදී රනිල් වික්‍රමසිංහ පරාජය කරන්නේ කෙසේද? කෘතිම බුද්ධිය (AI) ප්‍රතිචාරය:
by D.G.Dayaratne Mon Jul 29, 2024 10:26 am

» Why Investors should stay away from Maharaja Foods PLC
by DeepFreakingValue Mon Jul 29, 2024 5:36 am

» Wire & Cable Sector Analysis
by God Father Sat Jul 27, 2024 5:44 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube


You are not connected. Please login or register

DIPD highly undervalued and will reach 100

+2
D.G.Dayaratne
Chamath1980
6 posters

Go down  Message [Page 1 of 1]

Chamath1980


Stock Analytic
Stock Analytic

WARNING LONG POST ! ONLY READ IF YOU ARE interested in Dipped Products DIPD.  Exclamation


2022 will be the year for DIPD


Dipped Products potential upside is easily above 100 Rs.


Why ?


Fundamental Reasons


CURRENTLY TRADING AT 4-5 PE. A RARE DIAMOND STOCK IN CSE THAT IS OPERATING IN A GROWING MARKET AND YET AT A LOW PE. ( INDUSTRIAL GLOVES AND SPECIAL PURPOSE GLOVES GROWING AT 150% YEAR ON YEAR)


Post covid mania the revenue is still growing and PROFITABILITY while declined is still at attractive figures. Granted the supernormal profit that DIPD earned due to covid is no longer there, however DIPD was never noted to be only a medical glove manufacturer. They have a wide variety of products. It simply pivoted to capture an opportunity with medical gloves and now is back to its normal line of business which is industrial gloves which is growing rapidly.

THE CONFIRMATION OF DIPD BEING HIGHLY UNDERVALUED AT THIS PRICE CAN BE VERIFIED BY FOREIGN INVESTOR GROUPS. INDEPENDENT FOREIGN INVESTOR FORUMS SUCH AS INVESTING AND SIMPLYWALLSTREET CLEARLY INDICATE THE SHARE IS GROSSLY UNDERVALUED.


DIPD is investing heavily with a one billion rupee investment into capacity expansions despite the current economic conditions of the country. While most other companies have cut down and competently eradicated any form of capital expenditure, DIPD has doubled down. This clearly indicates the company has understood how to navigate the turbulent economic conditions of the country and capitalize on the good future prospects of its products.

DIPD IS A CLEAR VALUE ADDITION EXPORTER AND NOT A COMMODITY EXPORTER. THIS CREATES A STRATEGIC ADVANTAGE FOR THE COMPANY AND REDUCES THEIR EXPOSURE TO PRICE WARS AND ABILITY TO HAVE A PREMIUM PRICING STRUCTURE.


Consistent dividend yield of 8% and above (Paid for over a decade) DIPD is one of the few companies in Sri Lanka that has paid a consistent dividend for the last decade. So an investor of DIPD can stand to enjoy both capital gains and a steady flow of good dividend income. Currently well above one year bank fixed deposit rates.

EXPORT PRESENCE TO 70 COUNTRIES, HUGE DOLLAR INCOME EARNER.


The largest problem the company is currently facing is escalating costs, revenue is growing (can be verified by quarterly reports). The company has found a solution to this and has greatly increased local raw material sourcing capabilities with projects such as "Firstlight". This reduces import dependence on raw materials and further increases profitability of the company. Approximate savings of 15 Million USD due to project Firstlight.


Theoretical Reasons.


Consistent Foreign buying of DIPD as well as increasing quantities among large players. Almost all of the selling being done is by retailers. TOP 100 shareholder list confirms that educated investors are silently accumulating the stock at bargain prices from uneducated retailers. Once the retailer selling is done, the price of the share will drastically increase due to no bargain selling.


Floating of the dollar will drastically impact the company positively. This will greatly increase the profitability of the company. Company net exposure of Dollar income ( Dollar revenue) to dollar expenses ( Dollar imports of raw material and other costs) is positive by 45% based on published research reports.


Economic sanctions on Russia will favorably impact DIPD, as several countries western countries such as Germany a major exporter of industrial gloves to Russia will be unable to do business due to economic sanctions. DIPD product range is highly sought after in Russian market for industrial use.


Unlikely yet possible reasons .


Global Political/Economical shocks can trigger the possibility of DIPD being aquired by a large international player or enter into strategic alliances. Global manufacturers will start to consider setting up disaster recovery sites in neutral countries to reduce their risk in case of a full blown war between Russia and the West. DIPD is an innovative value addition company that cannot be easily replicated. This will make the company highly sought after for glove products.

Acquisition by large players in the world such as Top Glove. Top Glove earned super normal profits during covid and will certainly be under pressure by shareholders to try and replicate the profits in the coming financial years. Mergers and acquisitions is one strategy that Top glove and use. Dipd is a notable player in the glove market. The possibility while unlikely still lingers.


On a final note, think about DIPD logically.


1. DIPD is a share that is a huge dollar earner. Best way to hedge the risk of the current economic crisis of the country.


2. Has an innovative and good product line that has global demand.


3. Operates in a market expected to grow by 150% (Glove market both special purpose and industrial)


4. 8% Dividend Yield, that has been paid for over 10 YEARS! 2 to 3 dividend payments a year.



WHY SELL SUCH A VALUABLE SHARE FOR A BARGAIN AND MAKE OTHERS RICH ?

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Excellent professional report on DIPE 

We have to promote this type of reports

NOT'GON KATHA'

Shiranli


Equity Analytic
Equity Analytic

EPS 6+ for first quarter.. will pass  60 +

nilantha suranga and Dasun Maduwantha like this post

blindhog


Senior Equity Analytic
Senior Equity Analytic

Shiranli wrote:EPS 6+ for first quarter.. will pass  60 +

That is because of plantation segment. Market dynamics changed for glove segment. which is the biggest contributor.

DIPD highly undervalued and will reach 100  WHQPgfQrU4J6gAAAABJRU5ErkJggg==

nilantha suranga likes this post

nilantha suranga


Equity Analytic
Equity Analytic

Shiranli wrote:EPS 6+ for first quarter.. will pass  60 +

KVAL  and  TPL ran. next  DIPD for sure..
Now DIPD holding company..
KVAL and TPL they achieved  first quartet EPS to adjust price..But sill DIPD waiting EPS 6 

sure DIPD will pass 50..

Dasun Maduwantha


Equity Analytic
Equity Analytic

Shiranli wrote:EPS 6+ for first quarter.. will pass  60 +
huge expansion going there in Thailand...Super  counter ..DIPD will pass 50 +
 best share  to collect..Rumour sources mentioned  next Quarter EPS may be 6+  Rocket...

Sponsored content



Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum