DIPD.N0000 (Dipped Products PLC)

                                   2019

Dipped Products PLC has shown recovery from its downward trend.

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Even though Dipped Products is a leading manufacturer in rubber gloves markets commanding 5% of the global market its profit is heavily depending on two Plantation companies namely Kelani Valley and Talawakale.

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Sector	2019	%
Hand Protection	712	43.36
Plantation	930	56.64

EPS and Dividends over a decade

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PE ratio of the company

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Thanks.

Last quarter was not so stunning.But NAV is around 175.Any predictions on 3rd quarter?

spw19721 wrote:Last quarter was not so stunning.But NAV is around 175.Any predictions on 3rd quarter?

I guess YK missed seeing this too. Nobody is going to answer you question right ?

People will only talk about the shares they hold or are interested in. Else
who is bothered to help others.

Okay, I have not analyzed the latest details , but I think this quarter is not
going to be very good for DIPD. Also you need to consider the rubber prices.  
They should have done okay not great.

Having said that this is a good company at a good price at Rs 80.
Will not be a favorite or will be talked about, untill a push happens after
mass buying . Then amazing stats , figures and promo will happen.

If you have patience and is for long term - hold.
But if for short term , there are other shares.

slstock wrote:

spw19721 wrote:Last quarter was not so stunning.But NAV is around 175.Any predictions on 3rd quarter?

I guess YK missed seeing this too. Nobody is going to answer you question right ?

People will only talk about  the  shares they hold or are interested in.  Else
who is bothered to help others.

Okay, I have not analyzed the latest details , but I think this quarter is not
going to be very good for DIPD. Also you need to consider the rubber prices.  
They should have done okay not great.

Having said that this is a good company at a good price at Rs 80.
Will not be a favorite or will be talked about, untill a push happens after
mass buying . Then amazing stats , figures and promo will happen.

If you have patience and is for long term - hold.
But if for short term , there are other shares.

Thanks SLS.
Plantations reports are expected to be bad when considering the fact that TPL post a Top Line and Bottom line even with very healthy Balance sheet.

Thank You very much for your feedback sir. As YK mentioned 56% allotment of revenue comes from plantations. TPL results not so good. As you mentioned,No big hopes on KVAL either.

I looked at this coz price hasnt been appreciated much with the bull run. Think it will be good to collect around 76-78 for long term.

And DIPD moved from 80s to 190s within a short period of time.

This time, TPL super results combined with gloves demand in pandemic has improved a top line growth.

YK, as predicted, this is indeed a share for Long term investors. SLS was last to comment..

YK and SLS any updates?

yes. definitely, tea export income also benefited to DIPD. DIPD has TPL & KVAL plantations, those plantations have done better for this quarter. ( See weekly tea report). on the other hand world surgical gloves demand has increased drastically. so DIPD has super future

DIPD reached 186.9 before falling to 180 yesterday. As 180 was resistance, this means its broke out from 180 level and tested it too. So if this doesn't go up from 180, 210 target would be far fetched....

My ST target was set at 190 but if this holds 180 now, then we can be happy for a longer journey

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Thanks Small.

smallville wrote:DIPD reached 186.9 before falling to 180 yesterday. As 180 was resistance, this means its broke out from 180 level and tested it too. So if this doesn't go up from 180, 210 target would be far fetched....

My ST target was set at 190 but if this holds 180 now, then we can be happy for a longer journey

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Dipd has two segments and both are performing very good at the movement and looks very stable demand for both
Revenue
1.Hand Protection- 5,567,838

2.plantation -tea -3,784,961

incremental % increase over the comparative period 2019
1.Hand Protection-1,122,217 25.24319999

2.plantation -tea -369,235 10.80985419

so you can see 25% increase of revenue in hand protection or gloves segment. This is because of Pandemic led spike in demand for both medical and household gloves.Strong growth in plantation earnings, due to favourable pick up in both rubber and tea prices also contributed to topline growth.Current momentum is expected to continue; DIPD confirms that its order book remain full running upto Mid-2021.

last June quarter earnings EPS 10.19 (for 3 months)
If we assume same result in rest of the year 10 x 4= 40EPS
But I get a more fair value 35 EPS
and Historically, DIPD has traded at 6.9x P/E (3-year average).
***** then the expected price 6.9x 35= 241
*****If we get a more optimistic value 6.9x 40= 276
*****But I have given above my fair value as only 210.00
*****But my strong feeling is the share should pass 250.00

Thanks cseguide; EPS 35 reasonable expectation
Same way price too 240

subash wrote:Thanks cseguide; EPS 35 reasonable expectation
Same way price too 240

Thanks and open for discussion. Invest good shares and reap a good profit. you will not lose investing in good shares. Try to collect CFVF, hayc as well.

COVID-19: Surgical glove makers struggle to keep pace with booming demand

PARIS: With no end in sight to the coronavirus pandemic, worldwide demand for surgical gloves - as for other types of personal protective equipment - is booming, leaving manufacturers struggling to keep up.

The global PPE market - from masks, gowns and gloves, to shoes and sanitising gels - is expected to balloon from US$52 billion in 2019 to US$93 billion in 2027, according to German market data specialist, Statista.
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And, like other such products that were previously predominantly the domain of specialist medical personnel, the surgical glove has become much sought after even by the general public.

US-based Allied Market Research estimates that the global disposable gloves market amounted to US$6.8 billion in 2019, and is expected to nearly triple to US$18.8 billion by 2027.


Worldwide demand for personal protective equipment is booming as a result of the coronavirus pandemic. (Photo: AFP/Yuri Cortez)


Just as worldwide shortages of masks and disinfectant gels have pushed up the prices of those products, single-use medical gloves have become increasingly difficult and costly to come by during the health crisis.
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"We have health centres calling us every day trying to get their hands on gloves," said Sebastien Lenoble, director of Netherlands-based Shield Scientific, which markets gloves for medical, industrial and laboratory applications.

"These aren't our usual clients. They're coming to us because they're desperate to find gloves."

NO PROTECTION?

While the World Health Organization says that wearing rubber or latex gloves in public offers little protection against infection, they are becoming an increasingly common sight in shops and public transport around the world.

"We are observing a more than threefold increase in demand for examination gloves, and demand for surgical gloves has also increased significantly," said Monika Riedel, spokeswoman for Austrian company Semperit, whose Sempermed subsidiary makes between seven and eight billion gloves every year.

Malaysia is the world's biggest maker of rubber gloves, accounting for around 60 per cent of global exports.



And according to the Malaysian manufacturers' association MARGMA, worldwide demand is projected to rise from 296 billion in 2019 to 330 billion this year.

Given the surge, the industry is forecasting a shortage that is expected to last well into next year, MARGMA said.

Malaysian manufacturer Top Glove, which describes itself as the world's biggest producer of rubber gloves, said it is seeing orders for 11 to 12 billion a month, compared with 4.5 billion prior to the pandemic.

POLLUTION PROBLEM

As a result, customers must now wait nearly 600 days for their orders to be filled, compared with a normal delivery time of 30 to 40 days, said chief executive, Lim Wee Chai.

In addition, with raw materials in short supply, production costs are also rising.


Runaway demand for PPE could pose an environmental problem in future. (Photo: AFP/Patrik Stollarz)


"The shortage of raw material for our nitrile gloves and the disruption to the supply or production of other material such as packaging materials due to the global lockdown, has caused an increase in the production cost," said Top Glove.

That would be passed on to customers in the form of higher prices.

While health experts argue that regular handwashing offers better protection against COVID-19 than gloves, the current boom for PPE is expected to pose another problem further down the line.

Environmental campaigners are concerned that millions of tonnes of single-use gloves will end up polluting the oceans.



Source: AFP/lk

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smallville wrote:DIPD reached 186.9 before falling to 180 yesterday. As 180 was resistance, this means its broke out from 180 level and tested it too. So if this doesn't go up from 180, 210 target would be far fetched....

My ST target was set at 190 but if this holds 180 now, then we can be happy for a longer journey

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What's your view on the current share price of DIPD? Any short term or long targets? Still good to enter?

Wonderer wrote:

smallville wrote:DIPD reached 186.9 before falling to 180 yesterday. As 180 was resistance, this means its broke out from 180 level and tested it too. So if this doesn't go up from 180, 210 target would be far fetched....

My ST target was set at 190 but if this holds 180 now, then we can be happy for a longer journey

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What's your view on the current share price of DIPD? Any short term or long targets? Still good to enter?

DIPD I entered after 100% appreciation from 80s.. Now its 400% from 80s.

How insane I would be to ask u to enter now? DIPD share price represent its current earnings (imo) and broker huts give over 500 targets and to justify those DIPD has to show super duper earnings in Sep qtr as well.

For those who are scared to enter are getting the chance once more. Probably this stock can come down below 300 thanks to our baby-like investors who have panicked once more with Gampaha lock down and starts throwing away what ever stock they are holding. Due to this set of pathetic baby type investors a 1% of patient investors can buy from them at a lower cost and can sell them back again at a higher price.

It happened today came below 300

Came below 300 and move back to 310. It will reach where it was before the fall as well. Smart investors can make free money in this type of market where panic can creep in to the mind of investors very easily.

I think this was still worth below 300, but cant recommend above 300.

I would love if I can grab some around 250/-.

The Invisible wrote:I would love if I can grab some around 250/-.