fundamental analysis shows ipl now weaker

guys what do u think will be the REALISTIC Earnings Per Share figure for this company??

Theyre exposed to commidities which are falling like a knife atm

I cant see profits increasing at all!

And now you got a massive share dilution that will LOWER the EPS figure and make the buffet style Return on Equity key figure look worse and the Return on Invested Capital or Return on Assets look closer to the ever decreasing return on equity with all the added dilution

the buffet style fundamentals for this coy have changed - look at ROE and ROIC/ return on assets (ROA) in the last cple of years and compare it to what its gonna be after all this dilution

If the company CAN grow NPAT though , ROE n ROIC/ROA have a good base at which they can start ot come back and look better and better

But can they grow earnings or was 2007 the 'top' of the earnings cycle in terms of the commodity and product they sell???

thats the million dollar question

Return on Equity has suffered through all the massive acquisitions and all this share dilution to pay down the debt!

Buffet says 12-15% is ideal

I think post dilution we'll be below that, and ROIC and ROA will start to move in line with ROE since theres more weighting to equity than debt in the debt/wquity mix

Only consistently increasing NPAT, can the ROE/ROIC/ROA come back to form and make this a buffet style company

I think 2007 was the top of the earnings cycle unfortunately

U realise a decrease in NPAT for 2009 PLUS all the added dilution, will make the key ROE/ROA figures look BAD in terms of buffet 12-15% for ROE and 8% or over for ROA

Fundamentally the company is better off with less debt, but ROE/ROA n EPS are all gonna be down for 2009 unless growth in NPAT can occur somehow

If NPAT goes down, sorry, but fundametals of this company dont look tnat great

If explosives prices and fertiliser prices go down, were gonna make less NPAT per much more shares and ROE/ROA n EPS all down and out of buffet territory.

PE is deceiving coz prices may very well decrease by 30% at least and thus profit will go down and PE will be closer to 10!

Be careful.