DIPD.N0000 (Dipped Products PLC)

[yellow knifeTop contributor]

Bad news is like music to a long term investor..

Once it was Seylan Bank.. after Seylan Group issue the price of the share fell and those who trusted the bank during the bad time those who dared to buy soon had a nice time..

Dipped is another such share.. It had a bad time.. Price went down even below Net Asset Value.. Those who dared to buy Dipped had a good time next..

So my analysis is on Dipped Products..

[yellow knifeTop contributor]

Its sales turnover continued with dedicated  customers..

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[yellow knifeTop contributor]

2012 recorded highest profit of the company and soon had to face problems with Rathupaswala incident...

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[yellow knifeTop contributor]

Dipped Products maintained good EPS and continued paying good dividend...

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[dhanurrox]

It fell to 85 and I also bought ended up at 150

[yellow knifeTop contributor]

There were good opportunities to pick this share even when PE ratio was below 5

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[yellow knifeTop contributor]

Dhanu has dared to pick the share when others opt not to...

When PE ratio was very high this share was much in demand.. but when the price fell down many neglect it ..

[dhanurrox]

Dhanu has dared to pick the share when others opt not to...

When PE ratio was very high this share was much in demand.. but when the price fell down many neglect it ..

We personally discussed this.CCS too.

[yellow knifeTop contributor]

Debt to Equity ratio was continously coming down making the company to reduce its finance cost..

Many companies in CSE are now getting rid of debt. TJL was proud to announce zero debt situation... Fortress Resorts (RHTL) is now entering into zero debt situation..

Even if Dipped will not join zero debt in future a company that enjoy financial slack will always find good opportunists and to fund big project through bank loans where ever there is opportunity..

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[yellow knifeTop contributor]

Long term investors should evaluate a company with proven history and the best time is to buy when its net asset value is higher than market value..

As Warren Buffet says one right decision per annum is more than enough and of course you will not get such opportunities always..

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[Ethical TraderTop contributor]

Thanks YK. Its a very good analysis. I too entered this share during Rathupaswala saga dispite the risks involved, knowing its future potential.

[yellow knifeTop contributor]

Dhanu your picking price was one of the best as now you see in the chart..

[yellow knifeTop contributor]

Now we can compare Plantation Sector and Manufacturing Sector.

R= P*Q

So irrespective of the sector Revenue is always depending on Price and Quantity.. In Plantation sector both P and Q is dependent on factors beyond control of the company. But in Manufacturing sector P and Q is both under the control of the company..

TPL.N is one of the best plantation companies but had two negative EPS in two years earlier.. But DPL.N continuously recorded positive EPS..

Thus manufacturing sector gives more stable reliable income than plantation sector as long as you are well managed..

[First Guy]

Missed this thread yday. Good analysis YK! Hope to give my input sometime as well although I held this only briefly some time ago.

Btw YK, the ticker is DIPD. I have corrected it in the title.

DPL is Dankotuwa

[First Guy]

Bad news is like music to a long term investor..

Once it was Seylan Bank.. after Seylan Group issue the price of the share fell and those who trusted the bank during the bad time those who dared to buy soon had a nice time..

Dipped is another such share.. It had a bad time.. Price went down even below Net Asset Value.. Those who dared to buy Dipped had a good time next..

So my analysis is on Dipped Products..

Usually it's the retailers who panic and sell off in case of any bad news in my opinion regardless of the actual impact. We/they do not evaluate the impact to the performance and price when a news is out, however good or bad. Sometimes the price would have already been adjusted to that in the anticipation of such news.

Although at times it will not be possible to evaluate or there won't be a solution to a problem until the management comes out with one, but shouldn't we assume that they would have it covered at most times? Based on the past deeds of the management we need to put trust on them.

[SrirangaVeteran]

Thanks YK. Really good presentation and analysis.
Expecting more on Plantation sector in coming days.

[LeonTop contributor]

Thanks YK. + rep

Isn't it too early on plantations?? Anyway If rubber picks up KEGL is one share that should be looked on. Now trading below NAV.

[yellow knifeTop contributor]

Thanx FG for correcting the name of the company... What a mistake....  

When we evaluate Banks we use camel

Camel?

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No..not that one

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[yellow knifeTop contributor]

out of above five variables the mid one Quality of Management is a qualitative one..

We can not quantify this variable..

[yellow knifeTop contributor]

Thanks YK. + rep

Isn't it too early on plantations?? Anyway If rubber picks up KEGL is one share that should be looked on. Now trading below NAV.

I will do a separate analysis on Kegal.n and FG has also commented on Kgal..

Once again that company is also under good management of Dr Sena Yaddehige

[sashimaalTop contributor]

DIPD sensitivity analysis by Capital Trust

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[yellow knifeTop contributor]

Thanx Shshimal

[Illusion]

Thank you Sashimal.

[Future123Active Member]

Please share your ideas on DIPD. What do you think about Q2 results? Expers, Yellowknife, FG, Small, SLS and everyone.

Please clarify my doubts.
1) Is DIPD exposed heavily for tea and rubber? If so, is it significant to distort the overall performance?
2) How much the rupee devaluation helped them in Q2?
3) Any idea about profits and EPS?

Q1 wasn't good for them due to Euro weakening. But in Q2 Euro was appreciating against Rupee.

Please share your thoughts.

[yellow knifeTop contributor]

A clear answer for above Q2 lies in Shashimal's link above.