What happen to KHL?????

swan03 · 1 What happen to KHL????? Sun Feb 27, 2011 9:02 pm

swan03

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Why still KHL dosnt show a progress?

tubal · 2 Re: What happen to KHL????? Sun Feb 27, 2011 9:13 pm

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swan03 wrote:Why still KHL dosnt show a progress?

This is a large cap. One of the biggest hotel companies in the CSE in terms of market cap. Currently the market is retailed to the max. Retailers prefer small caps over large caps.

Sandun · 3 Re: What happen to KHL????? Sun Feb 27, 2011 11:05 pm

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It takes some time to rise..though it is highly overpriced.. collect some below 19/= it will give you something long term Cool

swan03 · 4 Re: What happen to KHL????? Mon Feb 28, 2011 7:26 am

swan03

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I have been holding this for 2 years now Sad

econ · 5 Re: What happen to KHL????? Mon Feb 28, 2011 7:30 am

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swan03 wrote:I have been holding this for 2 years now

I have not followed hotel sector much.
How about the price increase of KHL? did it stagnate even under those hotel rallies in early 2010?

swan03 · 6 Re: What happen to KHL????? Mon Feb 28, 2011 9:41 am

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I bought at 12.75 two years ago.

waruna dha · 7 Re: What happen to KHL????? Mon Feb 28, 2011 10:15 am

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swan03 wrote:I have been holding this for 2 years now

Niggard · 8 Re: What happen to KHL????? Mon Feb 28, 2011 10:49 am

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swan03 wrote:I bought at 12.75 two years ago.

Dear, now it trade @ 19, u r lucky but poor us.

cse.alpha · 9 Re: What happen to KHL????? Mon Feb 28, 2011 12:08 pm

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KHL has done well, and is expected to do even better with Sri Lanka tourism booming, but share seems no bargain at current valuations for short term investors.

Remember that it has 1,456 million shares in issue - that means for an EPS of Rs1 (and a PER of 19x at Rs19), it has to make a net profit of around Rs1.5 billion.

Its 3Q profit was Rs206 m - the 3Q is 'season' for hotels, but the EPS was still only Rs0.14 - Its 9mth EPS was zero. It book value is Rs8 per share.

On this basis, making a profit of Rs1.5 b in FY11E seems unlikely, but it may be possible next year in FY12E (new investments in hotels in Sri Lanka are ongoing) - so may be worth a look for investors with long term investment horizon.

But parent JKH twice sold down their stake in KHL at nice profit (this should have been a hint that share was overvalued in short term) last year, and share has under-performed market badly past year. More so as JKH sell down was not placed with strategic buyers, but dumped in market on short term traders, who have suffered subsequently amid attempt to make quick buck.