MTD Walkers Plc (KAPI.N0000) targets 20bn Turnover in 2015

MTD Walkers (KAPI) is attractive at current prices considering the current EPS 2013/14 of 4.42 and @ 10PER its worth about Rs 44/= also Net Asset Value (NAV) of the Company is Rs 42 and expected to be around 50 levels in the July results not yet released. At current Market Price the PER is below 8X and Profit growth of the company of 25% makes the PEG Ratio <1. I own 10,000 shares of this company bought at Rs 35/=.

Certainly a good stock I also bought at 32 levels....12,000

See the nice ascending triangle patten.
Fundamentally OK, Technically OK, Why I should not buy this ?   

Expecting some comments from SHARK about this chart pattern

Invest-Wise wrote:Certainly a good stock I also bought at 32 levels....12,000

Good share

yeap... it will be good...

Good to see a positive movement in a stock which has a great future value.

As I said before you are real Star! All the best!

Some of these stocks still have legs. There are plenty of stocks trading great discount to the market and some are massively undervalued. It is time to identity these great stocks now.

VALUEPICK wrote:As I said before you are real Star! All the best!

Some of these stocks still have legs. There are plenty of stocks trading great discount to the market and some are massively undervalued. It is time to identity these great stocks now.

Thanks for your appreciation which I value most.

If we add latest financials ,it is massively undervalued. Thanx for starting a topic under this and further healthy discussion is needed.

Sstar wrote:MTD Walkers (KAPI) is attractive at current prices considering the current EPS 2013/14 of 4.42 and @ 10PER its worth about Rs 44/= also Net Asset Value (NAV) of the Company is Rs 42 and expected to be around 50 levels in the July results not yet released. At current Market Price the PER is below 8X and Profit growth of the company of 25% makes the PEG Ratio <1. I own 10,000 shares of this company bought at Rs 35/=.
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all the best for the winning bid    , what is your next move? give me your suggestions to get involved with good fundamental shares in this market condition . thanx

Read the latest announcement by KAPI

MTD Walkers to foray into real estate with Wincon acquisition
FRIDAY, 29 AUGUST 2014 10:35 E-mail Print
By Dilina Kulathunga
Integrated infrastructure and engineering solutions provider, MTD Walkers PLC yesterday said its board gave the approval to acquire Wincon Development Ceylon (Private) Limited (Wincon), the local unit of the Malaysian property development company, Metacorp Berhad (Metacorp), for a consideration of Rs.2.17 billion.

" We wanted to get into the real estate sector for quite some time and I believe the acquisition will open up a window of opportunity in this sector "

The acquisition price will value Wincon’s share at Rs.4.01 and the deal will see MTD Walkers offering cash to Wincon to buy the 100 percent stake.
The management is currently considering the financing options as the internal cash reserves are only Rs.173.8 million as of June 30, 2014 but the receivables are over Rs.7.0 billion.

The acquisition will enable the local construction sector giant to enter into the buoyant yet intensely competitive property development and real estate sector in the country.

“We wanted to get into the real estate sector for quite some time and I believe the acquisition will open up a window of opportunity in this sector,” a company spokesman said requesting anonymity.

Sri Lanka’s property development and the real estate sector is currently dominated by Prime Lands (Pvt.) Limited, Home Lands Holding and the emerging player Blue Mountain (Pvt.) Limited.

The acquisition is most likely to go through in no more than 45 days upon receiving the shareholder approval.

The company will call for an Extraordinary General Meeting soon to obtain its shareholder approval.

The acquisition could also be considered as a part of its group re-strategizing exercise, which started end-July with the appointment of the management consultancy firm, MTI Consulting led by Hilmy Cader.

However, the company is still in negotiation with Wincon and is deliberating how to merge the entity with the group.

MTD Walkers is believed to be the country’s only infrastructure developer which is able to perform the entire spectrum of infrastructure development activities through its six subsidiaries, specialized in civil, mechanical and electrical engineering work, pile construction and power generation. Last week, MTD Walkers’ subsidiary CML-MTD Construction Limited set up another entity as a Board of Investment venture to undertake housing projects under the Urban Regeneration Plan set out as per the model proposed by the Urban Development Authority.

Once the deal goes through, Wincon will become the group’s seventh fully-owned subsidiary. Meanwhile, it was also learnt that Wincon, which was incorporated in 2003, was looking for an exit from the Sri Lankan market as they were not performing well enough to justify the Sri Lankan existence.

Wincon engaged in property development, building construction and mechanical and electrical engineering work. During the recent quarter ended June 30, 2014, the MTD Walkers group increased its net profits by a massive 74 percent to Rs.281.6 million from the same quarter last year.

MTD Walkers is a heritage firm, being the seventh oldest company in Sri Lanka and has been in operation since 1854.

http://www.dailymirror.lk/business/features/51706-mtd-walkers-to-foray-into-real-estate-with-wincon-acquisition-.html

Exited 50% of my KAPI holdings. I will sell the balance quantity around Rs 100/=. Will buy again if it falls below 45/= so that I could justifying the profit taking on the purported short sell.

There is no doubt on the company real value.

But we also need to consider the future segmental margins. As most of the profit coming from the road sector projects, moving to the contested building & real estate projects won't be able to generate higher margins as road sector projects.

In general road sectors, projects can generate 25% - 30% gross margin where building sectors is less than 8- 10%.

If they successfully complete the housing project surely they will be offered more contracts.even though housing segment 's profit margins are comperatively low ,segment demand is increasing annually .that will bring sustainability to the company in the long run.

The interesting point is why the company buys the developer. As previously happen with the ceylinco crisis, company may have-not other options to recover money owed from the Wincon Development

I think the new trend seems to started. Where will it end. 75/=?

Rebounded strongly after brief falling at support Rs.50. follow the trend. Pullback will be there. Until it confirm the intermediate trend trade with care.

Kapi is good share..
i sold.. it was wrong decision....

Sstar wrote:I think the new trend seems to started. Where will it end. 75/=?

Yes..that price is possible.

Heading towards the next level.

Sstar is so much dedicated. Posted the above 2.52 in the morning.

Sstar wrote:Heading towards the next level.

Yeah.collection is going on.getting ready for next wave.

Ooops there is a time difference. Clock is 3.30 hours behind.

Super stock.

I am targeting 100 if the market remains the way it is.