Future of DIMO share price

windi5 wrote:I can remember once it came down to Rs.1000 for a while, due to a force selling. ppl who bought at that time were very lucky coz in couple of days it went as high as Rs.3000. what a capital gain

windi5 wrote:I can remember once it came down to Rs.1000 for a while, due to a force selling. ppl who bought at that time were very lucky coz in couple of days it went as high as Rs.3000. what a capital gain

windi5 wrote:I can remember once it came down to Rs.1000 for a while, due to a force selling. ppl who bought at that time were very lucky coz in couple of days it went as high as Rs.3000. what a capital gain

ISURU wrote:In the current bull context what will be the future of DIMO share price?

windi5 wrote:I can remember once it came down to Rs.1000 for a while, due to a force selling. ppl who bought at that time were very lucky coz in couple of days it went as high as Rs.3000. what a capital gain

Rajaraam wrote:

ISURU wrote:In the current bull context what will be the future of DIMO share price?

According to today's news papers DIMO has got an order for 900 vehicles to forces and first batch has already supplied. They have alreay sold 800 NANO vehicles which was introduced very recently.According to the company they cant meet the NANO demand now. With all these we can predict easily their rapid growth. I personaly feel that DIMO would hit 2000/- very quickly.Not a buy/sell/hold reccomendation pl.

Rajitha wrote:

Why would you want to sell ALLI so low when the bonus of 1 for 2 shares is there? I don't think i will sell it below Rs 1.4-1.5k before the bonus shares! DIMO is down because the main director kept selling his shares and perpetual went out from DIMO !
But believe me when i say this DIMO will show over Rs 70 EPS for this quarter unless they included soem huge one off expenses ! According to my calculations the TATA NANO profits per share alone for this quarter has to be over Rs 30-40!

PS:- I already sold my DIMO shares though around 1480 and only got some odd lot!

StocksWatch wrote:

Rajaraam wrote:

ISURU wrote:In the current bull context what will be the future of DIMO share price?

According to today's news papers DIMO has got an order for 900 vehicles to forces and first batch has already supplied. They have alreay sold 800 NANO vehicles which was introduced very recently.According to the company they cant meet the NANO demand now. With all these we can predict easily their rapid growth. I personaly feel that DIMO would hit 2000/- very quickly.Not a buy/sell/hold reccomendation pl.

Can NANO make a big impact to DIMO's earnings? The price of NANO varies between Rs 925K - 1100K. Let's assume the company making Rs 100K net profit from each car sold - This will give Rs 80 million (Rs 100K X 800) - And this profit will contirbute Rs 9.20 to EPS.

But this will surely compensate the anticipated drop in sales of other vehicles due to recent tax increase. One other thing to note is the recent tax increase only affected the vehicles having engine capacity less than 1600CC. So the sale of DIMO's high end vehicles like merc's will not be affected.
govt recently revised the age rule of recon cars imported to the country. It has dropped from 3.5 years to 2 years thereby making the recon cars expensive in the market. In my opinion, this can increase the demand for brand-new cars over recon cars as the gap has now reduced.

Overall I am positive about DIMO.

Rajaraam wrote:

StocksWatch wrote:

Rajaraam wrote:

ISURU wrote:In the current bull context what will be the future of DIMO share price?

According to today's news papers DIMO has got an order for 900 vehicles to forces and first batch has already supplied. They have alreay sold 800 NANO vehicles which was introduced very recently.According to the company they cant meet the NANO demand now. With all these we can predict easily their rapid growth. I personaly feel that DIMO would hit 2000/- very quickly.Not a buy/sell/hold reccomendation pl.

Can NANO make a big impact to DIMO's earnings? The price of NANO varies between Rs 925K - 1100K. Let's assume the company making Rs 100K net profit from each car sold - This will give Rs 80 million (Rs 100K X 800) - And this profit will contirbute Rs 9.20 to EPS.

But this will surely compensate the anticipated drop in sales of other vehicles due to recent tax increase. One other thing to note is the recent tax increase only affected the vehicles having engine capacity less than 1600CC. So the sale of DIMO's high end vehicles like merc's will not be affected.
govt recently revised the age rule of recon cars imported to the country. It has dropped from 3.5 years to 2 years thereby making the recon cars expensive in the market. In my opinion, this can increase the demand for brand-new cars over recon cars as the gap has now reduced.

Overall I am positive about DIMO.

Thank you StockWatch for your nice explanation. I fully agree with the facts you mentioned. If I add little to that I think NANO will write a new chapter for taxi service in SL. At present highest profit earner in the vehicle trade according to my knowledge is not a car/bus/truck seller.It is a company selling three-wheelers.They started in small scale and now many thousand units are sold every day. Nano will definetely replace threee-wheelers soon in Sri Lanka taxi service.