KGAL, KOTA, MAL, AGAL & others

Paypal · 1 KGAL, KOTA, MAL, AGAL & others Sun Apr 17, 2011 4:15 pm

Paypal

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Employers & trade unions in Sri Lanka's plantation sector have put off a second round of discussions on new wage levels for the sector for April 29 after an inconclusive first meeting on April 4.

Three unions, LJEWU, CWC, & the joint plantation trade union sat with EFC (Employers Federation of Ceylon) to work out on a new collective agreement with the main issue being a 50% wage
hike sought by workers.

Plantation companies, represented by the EFC, say their profits have been eroded and costs are going up significantly affecting their ability to pay high wages. Unions counter by saying that recent high prices for tea have seen a sharp rise in profits for employers.

Do the above news stagnate/move down the share prices of
KGAL, KOTA, MAL, AGAL & others.???

Question

Slstock · 2 Re: KGAL, KOTA, MAL, AGAL & others Sun Apr 17, 2011 4:32 pm

Slstock

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Paypal wrote:Employers & trade unions in Sri Lanka's plantation sector have put off a second round of discussions on new wage levels for the sector for April 29 after an inconclusive first meeting on April 4.

Three unions, LJEWU, CWC, & the joint plantation trade union sat with EFC (Employers Federation of Ceylon) to work out on a new collective agreement with the main issue being a 50% wage
hike sought by workers.

Plantation companies, represented by the EFC, say their profits have been eroded and costs are going up significantly affecting their ability to pay high wages. Unions counter by saying that recent high prices for tea have seen a sharp rise in profits for employers.

Do the above news stagnate/move down the share prices of
KGAL, KOTA, MAL, AGAL & others.???

As we know the wage issues will impact mostly the tea plantitions with higher tea ratios compared to other crops. All of the higher rubber /oil palm based plantations also have some tea but comparatively they will be lesser effected with higher revenues/profits due to good rubber and oil palm market prices.

The question is in the short term , does the market (CSE) realise this potential and treat selective plantations with the respect and upwards price movement they derserve or will it treat all plantations the same way. Right now I see some plantation are traded at higher PE while some of the most growth potential ones are at lower PE ( rubber and oild plam based).

Out of the quoted companies I see KGAL as the most undervalued due to its current finanicals and future/ medium term growth. MAL is still trading on trailing PE of around 5.5 I believe. KOTA and AGAL has potential but trading at higher PE compared to KGAL and MAL as we see.

worthiness · 3 DATABASE FOR PALANTATION COMPANY Mon Apr 18, 2011 9:49 am

worthiness

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For reference please submit a database analysing the companies related to plantation sector covering tea /rubber / palm oil.

thanks

factFINDER · 4 Re: KGAL, KOTA, MAL, AGAL & others Tue Apr 19, 2011 9:47 pm

factFINDER

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worthiness wrote:For reference please submit a database analysing the companies related to plantation sector covering tea /rubber / palm oil.

thanks

@worthiness

some of these data can be seen (follow the link below) in this discussion;
http://forum.srilankaequity.com/t2769-plantation-companies-rpc-product-revenue-mix#18781

Appriciate your feedback too!! Very Happy