DIC INDIA

incorporated as coates of india in april47, dic was promoted by coates brothers & company as a wholly owned subsidiary to manufacture n market priniting inks n allied products.it went public in 1962.DIC long with its subsidiary are the world leaders in printing inks with a global market share of nearly 40%.
during CY05, dic posted 35% higher net profit of arnd 10 cr on sales of 279 crs...yeilding an eps of 14.5.during Q4 FY05, dic registered 58% higher net profit of 3 cr on 19% higher sales of 77cr. its equity capital of arnd 6.9 cr n reserves of 97 crs....book value wrks out to be 150.
promoters holding 66%....domestic institutions hold 5.3% n another 3.9 is held by non-promoters corporates.

the fortune of the printing industry is related to the growth in economy in general n the publishing n packaging sectors in particular.though the GDP growth was high, the growth of the packaging was impacted by the slow growth of the FMCG sector, which in turn restricted the topline growth of the industry.however, there was positive growth in the publishing neutralizing the negative impact of the packaging sector.further, the increasing urbanization n literacy levels r likely to result in comfortable growth rates for the industry.
DIC will focis on improving the operating margins through better productivity n greater focus on logistics,developing competence against international players on the strength of the technology provided by its parent company n effective wrking capital.
the sahres r currently traded at 257 levels discounting its eps of 14.5 by 17 timesn projected eps of 20 for fy06 by 12 times.
applying the industry PE average of 17....the share can easily touch 350.....shld be bought 25% right now n rest on every 10-15% declines....215 works out to be a support levels aft which the next supports is arnd 190 levels