Premium valuation for JKH is justified – IIFL Securities

$$$

$$$

Senior Manager - Equity Analytics

Posts : 304
Equity Stars : 5409
Reputation : 24
Join date : 2011-01-27

Premium valuation for JKH is justified – IIFL Securities
January 26, 2011 @ 12:01 am

Stock broker says JKH is ideal play on Sri Lanka’s economic revival; fixes Sum-of-The-Parts valuation-based target price of Rs. 335
IIFL Securities Ceylon has said that the premium valuation for John Keells Holdings (JKH) is justified and its recommends the stock as buy to investors. This assessment is carried in IIFL Securities’ initiation report on JKH which has been identified as “ideal play on Sri Lanka’s economic revival”.

mono

mono

Vice President - Equity Analytics

Posts : 1167
Equity Stars : 6486
Reputation : 93
Join date : 2011-01-21
Age : 103

I get the feeling that there is a grand push on JKH coming up. Even my broker is pushing this on me. It'll be interesting. I hold some of these bigger companies run. it might wash away some of the grime on the CSE

KDS · 3 JKH valuations Sat Jan 29, 2011 2:15 pm

KDS

Senior Equity Analytic

Posts : 92
Equity Stars : 5183
Reputation : 26
Join date : 2011-01-27

the JKH results have been extraordinary and this will continue to improve due to the large number of projects they are already involved in and their restructure of business. Most of the big guns have collected the share through quite a lot crossings in past at price range of 295 - 300. So, the main reason for the share to be stagnant may be due to retailers running behind penny stocks (they dispose their small quantities at these price level as they see its being stagnant) and few foreign companies involved in profit taking.

After this share drain from this penny stock lovers and the real demand emerges it might touch the price levels mentioned by few of the members (Rs. 330 - 350) within 2 - 3 months time. But you cant expect it to run like few shares in the market (more than 100% in couple of months). If u expect it to move like that don't buy and blame the company as these are low risk moderate capital gains. what i mean by moderate is about 40% rise per annum which is much better than banks give aways.

Always good to keep this share in your portfolio due to its high reputation and low risk nature.

tubal

tubal

Vice President - Equity Analytics

Posts : 1047
Equity Stars : 6474
Reputation : 243
Join date : 2011-01-27

I would also love to see some of the blue chips run but I have my serious doubts. The foreign funds are still net sellers and with economies back home still improving, there is little reason for them to change their mindset. As such, every time the price of these shares go up, they will be happy to dispose of a few million more shares.

Secondly, I do not quite agree that JKHs profit is extra ordinary. It's rather ordinary. Bulk of it is capital gains. They own so many companies but only a few of them are making a profit.

Last but not least, conglomerates have become rather unfashionable. Just Google for breaking up conglomerates.

Sponsored content

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Latest topics

Premium valuation for JKH is justified – IIFL Securities

1 Premium valuation for JKH is justified – IIFL Securities Sat Jan 29, 2011 12:35 pm

$$$

2 Re: Premium valuation for JKH is justified – IIFL Securities Sat Jan 29, 2011 1:24 pm

mono

3 JKH valuations Sat Jan 29, 2011 2:15 pm

KDS

4 Re: Premium valuation for JKH is justified – IIFL Securities Sat Jan 29, 2011 8:15 pm

tubal

5 Re: Premium valuation for JKH is justified – IIFL Securities

Sponsored content

New topics