Is CTBL a good buy at the moment?

CSEStockWatch · 1 Is CTBL a good buy at the moment? Fri Oct 11, 2013 10:26 am

CSEStockWatch

Senior Equity Analytic

Posts : 68
Equity Stars : 4348
Reputation : 1
Join date : 2012-09-26

What do you think? Please share your ideas.

D.G.Dayaratne · 2 Re: Is CTBL a good buy at the moment? Fri Oct 11, 2013 10:40 am

D.G.Dayaratne

Senior Vice President - Equity Analytics

Posts : 2020
Equity Stars : 8706
Reputation : 57
Join date : 2011-12-13
Location : Kotte

Next week market will go up provided no manuplation

seek · 3 Re: Is CTBL a good buy at the moment? Fri Oct 11, 2013 4:28 pm

seek

Senior Manager - Equity Analytics

Posts : 558
Equity Stars : 4999
Reputation : 21
Join date : 2012-07-13

In general, tea based planation companies and tea brokering firms should do well in coming months since Sri Lankan firms are now getting a good price from the buyers.

• Tea export earnings in the first eight months of the year increased by Rs. 10.6 billion year on year (YoY) to Rs. 123.1 billion
• Sri Lanka’s tea export earnings in August increased by Rs. 6.2 billion to Rs. 18.8 billion YoY.
• Tea export volumes increased appreciably by 9.5 million kg. YoY to 31.4 million kg.
• The average tea price in the first eight months of the year increased by Rs. 47.10 to Rs. 599.45 per kg.
• All elevations showed a YoY growth, with Low Growns showing the biggest gain.

Source :- http://www.thesundayleader.lk/2013/10/06/tea-exports-hit-rs-123-bn/

Regarding CTBL,
1. It is in a clear path in terms of revenue growth and market share according to the quantity sold. The market share has grown from 2.5% to 9% over last 7-8 years and revenue has grown to 203 Mn from 116 Mn which is almost 75% during last four years.
2. CTBL has done well in Low Grown segment which is more profitable and currently hold 14% of the market share.
3. Price of a kilo of low grown teas has continuously hit over 490 Rs during last for weeks and on 25-Sep it has hit record figure of 506 Rs.

Jana1 · 4 Re: Is CTBL a good buy at the moment? Fri Oct 11, 2013 7:14 pm

Jana1

Assistant Vice President - Equity Analytics

Posts : 703
Equity Stars : 5493
Reputation : 37
Join date : 2011-06-17

CSEStockWatch wrote:What do you think? Please share your ideas.

I think soo...

traderathome · 5 Re: Is CTBL a good buy at the moment? Sat Oct 12, 2013 2:08 am

traderathome

Senior Vice President - Equity Analytics

Posts : 2485
Equity Stars : 7194
Reputation : 133
Join date : 2012-02-26
Age : 50
Location : Abu Dhabi

how many times to say this man.....this is a good share at current market price, for a possible upside.

seek · 6 Re: Is CTBL a good buy at the moment? Sat Oct 12, 2013 6:24 am

seek

Senior Manager - Equity Analytics

Posts : 558
Equity Stars : 4999
Reputation : 21
Join date : 2012-07-13

@Jana1, you didn't disclose the drama freind.

ASIY has got a larger market share than CTBL but current market price of ASIY is bit risky to enter.

Jana1 · 7 Re: Is CTBL a good buy at the moment? Sat Oct 12, 2013 7:10 am

Jana1

Assistant Vice President - Equity Analytics

Posts : 703
Equity Stars : 5493
Reputation : 37
Join date : 2011-06-17

seek wrote:@Jana1, you didn't disclose the drama freind.

ASIY has got a larger market share than CTBL but current market price of ASIY is bit risky to enter.

@ Seek,

Sometimes I don't answer, if I knw that my baseless disclosure inadvertently influence on share price, if that info is true.. U also will be a loser, if u hold it...becz no1 will push it, if dey suspect mkt is active on that counter....

smallville · 8 Re: Is CTBL a good buy at the moment? Sat Oct 12, 2013 7:28 am

smallville

Associate Director - Equity Analytics

Posts : 4119
Equity Stars : 10109
Reputation : 530
Join date : 2011-02-03
Location : Back on Earth

Jana1 is correct.. When we dont have proof or non-ambiguos information, we must not declare it here and assist to bring losses to others or inadvertantly drive the share price up.

seek · 9 Re: Is CTBL a good buy at the moment? Sun Oct 13, 2013 9:36 am

seek

Senior Manager - Equity Analytics

Posts : 558
Equity Stars : 4999
Reputation : 21
Join date : 2012-07-13

I am expecting to see one famous name in top 20 list of either CTBL or ASIY in next Q results Most probably it will be CTBL. He was bullish on tea from last year.

traderathome · 10 Re: Is CTBL a good buy at the moment? Sun Oct 13, 2013 9:58 am

traderathome

Senior Vice President - Equity Analytics

Posts : 2485
Equity Stars : 7194
Reputation : 133
Join date : 2012-02-26
Age : 50
Location : Abu Dhabi

seek wrote:I am expecting to see one famous name in top 20 list of either CTBL or ASIY in next Q results Most probably it will be CTBL. He was bullish on tea from last year.

In ASIY if the 20th investor was holding less than 200K ,surely I will be in the list Smile

Are you referring to SL Rolling Eyes

seek · 11 Re: Is CTBL a good buy at the moment? Sun Oct 13, 2013 10:49 am

seek

Senior Manager - Equity Analytics

Posts : 558
Equity Stars : 4999
Reputation : 21
Join date : 2012-07-13

no TAH, I am expecting Mr. Nizam at top 20.

seek · 12 Re: Is CTBL a good buy at the moment? Tue Dec 03, 2013 1:33 pm

seek

Senior Manager - Equity Analytics

Posts : 558
Equity Stars : 4999
Reputation : 21
Join date : 2012-07-13

CTBL last 6 months figures
Profit from operations 13 M (16% improvements from first 6 months of 2012)
Finance income 35 M (70% improvements from first 6 months of 2012)
Profit before taxation 48 M (51% improvements from first 6 months of 2012)
Operational profit is only 27% from total profit.

Under current assets
Loans to tea suppliers 91 M(700% improvements from first 6 months of 2012)

It seems that with the backing of CT holdings, CTBL is acting like a small finance company to small scale tea producers.

CTBL is in a position to report at least 70 cents by the year end 2013/14 and declare dividend of 35 or 40 cents by mid next year.