Sunday, January 3, 2010
at 5:04 PM
SHARE PRICE - Rs 76.00
ASI - 3385.55
31/12/2009 - Singer Sri lanka is a more than 100 year old company operating in our country. To day it is a large diversified company hold dealership for several powerful brands (Philips/Kenwood/Titan) in Sri lanka. It has acquired the Heylease consumer electronic channel in year 2008.
Singer has a very good network covering major towns,Rural areas etc. They are rewarded MOST POWERFUL BRAND IN SRI LANKA by the Ac Nielsen/SLIM & Most popular teen brand in Sri lanka.
Singer profitability was severely affected by low consumer demand,war situation & high interest costs for the past two years. Now with the economic rebound/low interest regime we can expect the reverse of the same from the company in future taking in to consideration their strong presence in agricultural/rural ares.
They have following strategic business units-
*Sewing related products * Consumer electronics * White goods (Refrigerators/ Freezers)
*Communication (computers) * Kitchen related products * Furniture
*Transportation (Motor bicycles) * Agro (water pumps/Threshers) * Singer finance
We believe that the company is well positioned to grab the opportunities available in future specially from the economic revival & the North & East areas.
NAV of the company as at 30/09/2009 is Rs 47.97 . Reported profit for the same period was Rs49 m.n as against a profit of Rs 183 m.n.(This is with one off sale of commercial leasing in 2008).However for the last quarter there was a significant profit growth announced by the company. As at 30/09/2009 quarter profit was Rs 14.9 m.n. as against a loss of Rs 40.9 m.n a growth of 137% YOY.
Company has Reserves to the value of Rs 1.9 b.n in its books.as at 30/09/2009.
Singer finance will be the main driving arm of Singer Sri lanka's profitability in future.
Major share holders -
* Singer (Sri Lanka) BV 53,906,425 86.11 - 86.11%
* Singer Industries (Ceylon) PLC 1,050,700 1.68 - 1.68%
Singer Sri lanka is a high dividend paying company in its history as LLUB, NEST, TOBACCO.
Singer has been listed in CSE during the year 1982.Since then they have given 13 bonus issues to its share holders up to the year 2006.
RECOMMEND - LONG TERM BUY