Company profit will rise by 60% in 2010 and by 32% in 2011 said three market analysts in srilanka. John Keellls Stockbrokers says company profit grown 92% in December / March - 2011. Acuity Stockbrokers said more than 50 %. Asia Securities predicted nearly 35 % of profit growth this year.
Analyst prove their statement through Dialog Telekom profit growth. Last Year Dialog Telecom lost nearly 13 billion that last got mass investments like mobile, broadband, Dialog Tv, ect but dialog planned managed their lost said its on the replacement of old equipments through that modest and aimed profit 2 billion in current year, Market grow by 30 %.
On Friday shares hit a new record high when the maket closed up 0.8 percent led by retail buying in to banks. Overall stocks are up 22 percent this year; making the CSE Asia’s best performing market. Last the market was up 125 percent.
Weerasinghe research manager at Acuity says “Earnings will keep growing in the next two to three years, because consumption is increasing,”
The price to earnings ratio (PER), denotes the number of years it would take to recover an investment at the current share price. Based on reported earnings in the last four quarters Asia Securities estimates the PER at 21 times.
John Keells Holdings, is forecasting telecom sector profits will rise 129 percent this year, due largely to the turnaround at Dialog.
Manufacturing firms also grown their profit this year will rise 48 percent, diversified firms (JKH, Hemas, Hayleys & Spence) by 48 percent.
Hotel profits will grow 127 percent. says Asia Securities “In December quarter resort hotels saw 700 million profits form a loss of 200 million. That’s a drastic upturn,”
Overall last financial year JKSB estimates company profits declined 18 percent. In the financial year ending in March 2009 profits declined 30 percent.
“The fiscal issue can cause short term instability, if that’s sorted there will be a more positive perception,”
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