MAL.... my good pick

dmjesua · 1 MAL.... my good pick Thu Feb 10, 2011 12:42 am

dmjesua

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I've sold my Other plantation stocks with great earning ( I collected before rally according to my brokers advise) Now I've moved into MAL (again his advise), I'm holding my TPL. Am I right or wrong? need your advise...
Note: Rubber prices getting high, so all plantations can move further. but I moved to MAL because of higher return.

Slstock · 2 Re: MAL.... my good pick Thu Feb 10, 2011 3:20 am

Slstock

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Yes MAL is presently undervalued.

Going with a already accumulated 9 month EPS of over 14 MAL is much undervalued in the sector. Due to Tea prices there was a small set back ( reduction in profit) in Sept Quarter which brought the prices down and now started picking up with expectations. Compared to other plantations MAL has not gain much in this run.

With stronger TEA prices and exceptional Rubber prices, MAL should be back in the game this quarter unless for the unforeseen. So if things go right for them an annualized EPS of Rs 18-20 is on the cards . Even going with a PE of 8 it is worth around Rs 150.

Please note this is not a buy recommendation and meant for only analysis.

smallville · 3 Re: MAL.... my good pick Thu Feb 10, 2011 6:37 am

smallville

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MAL & BALA both were extremely undervalued earlier.. While BALA made losses, MAL was still making profits but qtr to qtr analysis, the last qtr resullts were not that good, so it came down and then shot up at Rubber hike...
MAL is still valueable at the current rates and better to hold and see..
Even if we go for KGAL, its another plantanation keeper..
Just my view ;-)

gamaya · 4 mal Thu Feb 10, 2011 6:40 am

gamaya

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This counter is trading at a discount compared to other plantations. I hope price adjustment would happen as did for HOPL. These things depend much on actions of big players.