Kegalle Plantations Analysis

Quibit · 1 Kegalle Plantations Analysis Sun Feb 19, 2012 2:01 am

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Analysis by a Forum Member.
http://research.srilankaequity.com/t213-kegalle-plantations#289

Kinm hunter · 2 Re: Kegalle Plantations Analysis Sun Feb 19, 2012 6:57 pm

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Why I can't see this ?

illuminati · 3 Re: Kegalle Plantations Analysis Sun Feb 19, 2012 7:05 pm

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Expect another 30% wage increase end of the year ( as per the collective agreement) That will effectively kill the growth of tea, rubber and any other plantation related industry.

rishanpossitive · 4 Re: Kegalle Plantations Analysis Sun Feb 19, 2012 7:11 pm

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illuminati wrote:Expect another 30% wage increase end of the year ( as per the collective agreement) That will effectively kill the growth of tea, rubber and any other plantation related industry.

Looks like your big bear illuminati is collecting plantations.don't be too late.

smallville · 5 Re: Kegalle Plantations Analysis Sun Feb 19, 2012 8:14 pm

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Kinm hunter wrote:Why I can't see this ?

Did u register in Research site?

U have to separately register there, either with ur username or a new one if urs is taken..

smallville · 6 Re: Kegalle Plantations Analysis Sun Feb 19, 2012 8:17 pm

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illuminati wrote:Expect another 30% wage increase end of the year ( as per the collective agreement) That will effectively kill the growth of tea, rubber and any other plantation related industry.

Already a wage hike was announced last year and we saw a huge dip in their profits due to this. As far as I could remember KGAL was one of the 2 or three plantations that wiped off the wage increases in one go and their next qtrs seems picked up, I've not heard about another wage increase, may be I've missed.. But do u have any source for this?

illuminati · 7 Re: Kegalle Plantations Analysis Sun Feb 19, 2012 8:26 pm

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smallville wrote:

illuminati wrote:Expect another 30% wage increase end of the year ( as per the collective agreement) That will effectively kill the growth of tea, rubber and any other plantation related industry.

Already a wage hike was announced last year and we saw a huge dip in their profits due to this. As far as I could remember KGAL was one of the 2 or three plantations that wiped off the wage increases in one go and their next qtrs seems picked up, I've not heard about another wage increase, may be I've missed.. But do u have any source for this?

The last collective agreement expires in March 2013. The wage hike will be effective from there onwards. This is like a vicious cycle which has nearly killed the plantation industry in Sri Lanka. All boils down to politics.

smallville · 8 Re: Kegalle Plantations Analysis Mon Feb 20, 2012 4:19 am

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illuminati wrote:

smallville wrote:

illuminati wrote:Expect another 30% wage increase end of the year ( as per the collective agreement) That will effectively kill the growth of tea, rubber and any other plantation related industry.

Already a wage hike was announced last year and we saw a huge dip in their profits due to this. As far as I could remember KGAL was one of the 2 or three plantations that wiped off the wage increases in one go and their next qtrs seems picked up, I've not heard about another wage increase, may be I've missed.. But do u have any source for this?

The last collective agreement expires in March 2013. The wage hike will be effective from there onwards. This is like a vicious cycle which has nearly killed the plantation industry in Sri Lanka. All boils down to politics.

Thanks.. another year to go... I do agree that our production prices go higher due to this.. We no longer can meet the low cost criterais with wage issues.. But as NAV and other factors considered, KGAL looks attractive as its trading almost under the NAV value even..
NR also getting into a good demand as synthetic prices has a tendency to rise due to ois crisis..

Slstock · 9 Re: Kegalle Plantations Analysis Mon Feb 20, 2012 4:30 am

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smallville wrote:

illuminati wrote:

smallville wrote:

illuminati wrote:Expect another 30% wage increase end of the year ( as per the collective agreement) That will effectively kill the growth of tea, rubber and any other plantation related industry.

Already a wage hike was announced last year and we saw a huge dip in their profits due to this. As far as I could remember KGAL was one of the 2 or three plantations that wiped off the wage increases in one go and their next qtrs seems picked up, I've not heard about another wage increase, may be I've missed.. But do u have any source for this?

The last collective agreement expires in March 2013. The wage hike will be effective from there onwards. This is like a vicious cycle which has nearly killed the plantation industry in Sri Lanka. All boils down to politics.

Thanks.. another year to go... I do agree that our production prices go higher due to this.. We no longer can meet the low cost criterais with wage issues.. But as NAV and other factors considered, KGAL looks attractive as its trading almost under the NAV value even..
NR also getting into a good demand as synthetic prices has a tendency to rise due to ois crisis..

Also best to watch oil prices as it can impact the Natural rubber demands and prices. I do not know whether it is right time for plantations but out of the many RPC , KGAl has been one of the best managed. Also KGAL has some other hidden asserts

greedy · 10 Re: Kegalle Plantations Analysis Mon Mar 26, 2012 2:11 pm

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We see a small movement in plantation stocks now. I guess the reason behind this as increase in Rubber & Tea prices in rupee terms due to rupee depreciation. See attached images below;

Kegalle Plantations Analysis Rubber10