About KGAL..

dulanhh · 1 About KGAL.. Sat Sep 17, 2011 9:15 pm

dulanhh

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What do you think about KGAL is it worth at 150 levels. This was one of the best plantations that doing well as I know.

bakapandithaya · 2 Re: About KGAL.. Sat Sep 17, 2011 9:19 pm

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Wait & see. Dont hurry

investor1984 · 3 Re: About KGAL.. Sat Sep 17, 2011 9:26 pm

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If there ever gonna be a plantation rally, KGAL will be the biggest winner , with more exposure to rubber, a counter with lowest PE. earning volatility and seasonal variations are there which is a common factor in plantation sector , but compared to other plantation companies KGAL is in a strong position . We witnessed a reason buy back sort of move by RICH too, so its a company that even the parent company value high at current price range

nkuda · 4 Re: About KGAL.. Sat Sep 17, 2011 10:11 pm

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KGAL profit down last quarter mainly because of wage hike issue, I think KGAL can produce better financials in future, With exposure to rubber KGAL has more benefit,
As I feel this is an bargaining price. This is only my view I'm not an expert Smile

.

sriranga · 5 Re: About KGAL.. Sat Sep 17, 2011 10:28 pm

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KGAL price on 16/09/2011--------------- 152.50
EPS 2010/2011 ------33.51
EPS 2011/2012--------1.24 (upto 1 Quarter) FWD PER -----30.84
Cash Per Share-------56.64
Dividend Lasy FY-------3.00
NAV------------------97.12
PBV--------------------1.57
Sector PE---------------7.1

If we take CSE sector PE the present share price is high.
We need to wait and see their next quarters EPS to evaluate the price.
In my persoal opinion, this share is very good for long term investment.

ninja · 6 Re: About KGAL.. Sun Sep 18, 2011 6:48 am

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The global economic slow down has affected the rubber prices. This may be the reason for KGAL to come down to 150 levels. For me, this is the best company in plantation sector. The parent company RICH bought 150,000 shares at this levels.
Check out the rubber demand in 2012 and try to predict it now then you will not bother today's price of this share as its price will always driven by global demand of rubber. So far, as per the expert reports, the oil prices will shoot up to $130 and if this happens, rubber will always follow the oil price.

investor1984 · 7 Re: About KGAL.. Sun Sep 18, 2011 11:30 am

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sriranga wrote:KGAL price on 16/09/2011--------------- 152.50
EPS 2010/2011 ------33.51
EPS 2011/2012--------1.24 (upto 1 Quarter) FWD PER -----30.84
Cash Per Share-------56.64
Dividend Lasy FY-------3.00
NAV------------------97.12
PBV--------------------1.57
Sector PE---------------7.1

If we take CSE sector PE the present share price is high.
We need to wait and see their next quarters EPS to evaluate the price.
In my persoal opinion, this share is very good for long term investment.

How fair it is if someone use one quarter earning and annualized it to calculate PER for a plantation sector company???? You know plantation companies have seasonal variances... By the way if what i have read is correct its not just to multiply one quarter in to 4 and get yearly income and divide trading price by that answer to get FORWARD PER , as FORWARD PER should consider the EXPECTED earning.

sriranga · 8 Re: About KGAL.. Sun Sep 18, 2011 12:47 pm

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investor1984 wrote:

sriranga wrote:KGAL price on 16/09/2011--------------- 152.50
EPS 2010/2011 ------33.51
EPS 2011/2012--------1.24 (upto 1 Quarter) FWD PER -----30.84
Cash Per Share-------56.64
Dividend Lasy FY-------3.00
NAV------------------97.12
PBV--------------------1.57
Sector PE---------------7.1

If we take CSE sector PE the present share price is high.
We need to wait and see their next quarters EPS to evaluate the price.
In my persoal opinion, this share is very good for long term investment.

How fair it is if someone use one quarter earning and annualized it to calculate PER for a plantation sector company???? You know plantation companies have seasonal variances... By the way if what i have read is correct its not just to multiply one quarter in to 4 and get yearly income and divide trading price by that answer to get FORWARD PER , as FORWARD PER should consider the EXPECTED earning.

@ investor 1984
I totally agreed with your point regarding plantation companies seaonal variance.
We need to see the 30/06/2010 quarter financial statement also.
In that statement the EPS for (2010) that particular period was 5.24.
In the same period in 2009, it was 1.95.
So that the reason my point is to wait for the next quarter result to judge the price direction.
As everyone knows this share's NPV is the best in the sector.

Again I'm stressing nothing personal.
Have a good trade.

hariesha · 9 Re: About KGAL.. Sun Sep 18, 2011 3:13 pm

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KGAL 1Q 2010 profits are low due to one off item, Gratuity Provision for revised salaries. But this will not be in the case of Q2, Q3, and Q4. Without this one time charge Q1 2012 profit is higher than Q1 2011 profit. If we annualized it PE is around 5x. This true for NAMU also. That’s why RICH is increasing their stake in these two companies.