Diesel & Motor Engineering PLC

Overview of the companyDiesel & Motor Engineering PLC was established in 1939 as apartnership and probably the oldest sole distributor for Mercedes-Benz Passenger and Commercial Vehicles, in the Asian Region. InSri Lanka, DIMO is colloquially known as the “Benz Company”.The Company has a record of 68 years experience in theautomobile...

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CHEMICAL INDUSTRIES: Impressive 58.7% YoY Growth in 3QFY11

Earnings Reach LKR759mn Posting an Impressive 58.7% YoY GrowthChemical industries (CIC.N.LKR154.70,CIC.X.LKR109.00), posted a net profit of LKR759.0mn for 1-3QFY11 (vs. a net profit of LKR485.3mn for 1-3QFY10), reflecting a growth of 56.4% YoY, where company achieved net earnings of LKR382.7mn for 3QFY11. Growth was supported primarily by...

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Banking Sector – Riding the Growth Wave

Upside to loan growthWe expect the listed licensed commercial banks (LCBs) to book anaverage loan growth of 25% in FY11, picking up from the average lending growth of 22.52% YOY recorded in FY10Q4.We believethe positive macro economic outlook will translate to higher demand for credit aided by the low interest rates.We feel following sectors...

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Sri Lanka - Country Report 2011

The year 2010, when the thirty year civil war ended, generated much optimism regarding Sri Lanka’s economic prospects. The real GNP growth at this time seemed to bear this out. The first nine months of 2010 recorded a 7.9 percent real GDP growth, compared to 3.5 percent in 2009, and as against an expected growth rate of 7.5 percent in 2011. The business conglomerates that incurred losses in 2009 recorded nearly a 50 percent year...

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Namunukula Plantations (NAMU) – Stronger Earnings Through Crop Diversification

Namunukula Plantations (NAMU.LKR127.60) recorded a net profit of LKR146.7mn in FY10 (vs. net earnings of LKR40.7mn in FY09) mainly on the back of the 19.2% YoY growth in top line backed by attractive Net Sales Averages ( NSA’ s) achieved for all 3 main crops (Tea, Rubber and Oil Palm) of the company. NAMU, one of the well diversified plantation company’s in Sri Lanka has a distinct advantage over its competitors in terms of balanced...

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Lanka Walltile (LWL) - The Wall-Tile Giant

The wall-tile giant encompasses Lanka Tiles PLC (54.5% ownership) and Uni-Dil Packaging (52.9%) whilst having a controlling interest in Horana Plantations PLC with a 27% effective holdings (Through Ceytea Plantations). Furthermore, LWL has an associate interest of 34.6% on Parquet (Ceylon) PLC, which changed its core business to production of Grout and Mortar. LWL recorded a 14% incline to LKR6,444.3 mn in the top line for the...

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Kegalle Plantations (KGAL) – Towards a Promising future

Despite the impact from a 40% wage hike, Kegalle Plantations (KGAL.LKR204.80) managed to record an impressive net profit of LKR376.0mn in FY10 (83.4% YoY growth). Favorable market conditions for tea & rubber during the 2nd half of the year and changing the tea and rubber grade mix to suit market conditions contributed to this achievement.At the same time company achieved an overall NSA (Net Sales Average)...

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Vallibel One: the growing conglomerate with a Rs.1.2 billion net profit in 2010 and beyond

Vallibel One Limited is a diversified holding company incorporated on 09th June 2010. Prior to the proposed private placement and initial public offering 100% of the shares in issue are held by the business tycoon Dhammika Perera and companies controlled by him. Through its subsidiary companies Vallibel One has made strategic investments...

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ODEL seeking for incessant market expansion in Apparels, growing 26% YOY in 3Q in 2010

Background Odel which was established as a private limited company in 1990 by Otara Guawardene has today evolved as a foremost group of companies in Sri Lanka. It recently obtained the listing on Colombo Stock exchange, whilst being the first fashion retailer to go public in Sri Lanka. The IPO was successfully oversubscribed by 63.8 times.Company’s...

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DISECTING 2010 - Sri Lanka Stock Market Perspective

Economic Rewind  GDP growth gathers momentumThe year 2010 showed signs of improvement in the Sri Lankan economic outlook as the year witnessed the highest ever recorded GDP growth since 2002 in the 2Q, 2010 of 8.5 % amounting to Rs.634.9 bn. All three sectors of the economy registered significant growth in 2010 over the same period...

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