* As hyperinflationary dynamics begin to subside, the residual effect has unveiled a large dislocation in valuations of listed domestic players. * Steep price increases taken by domestic firms have been more than enough to offset a decline in volumes over 2022, resulting in strong revenue and earnings growth to new highs, despite a deteriorating macro picture. With the expansion in bottom line to new highs, it is our view that valuations need to adjust accordingly with the risk premium ...
During 2Q CY17, LLUB's quarterly revenue declined by 18.5% YoY to Rs.2,281 mn which was mainly caused by the decline in volumes that may have resulted from the widening of the price disparity between LLUB and its competitors following the price increase implemented by LLUB in April 2017. The disruption caused by the floods in Sri Lanka during the month of May could have also been a contributor to this drop in volumes. On the other hand, higher raw material (base oil) prices and an unfavourable c...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
LLUB's 3Q earnings increased by 19.9% YoY mainly due to margin expansionDespite the marginal revenue growth of 7.6% YoY, the expansion of the GP margin from 45.9% to 48.9% resulted in a healthy gross profit growth of 14.5% YoY. Furthermore, the reductions in distribution expenses (-5.2% YoY) and administrative expenses (-10.9% YoY) augmented the improvements seen at the GP level causing EBIT margins to expand from 36.4% to 40.6% which resulted in a sound EBIT growth of 20.2% YoY. Although net fi...
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