Free Lanka Capital Holdings record healthy profits

xhora wrote:Yes as main business of FLCH is more related to plantation sector it's better to use plantation PE to value this counter. So to me this worth at lease Rs.7

Plantation sector PE : 17
12 months EPS : 0.46

then 0.46 X 17 = 7.82

smallville wrote:
AS per 16-05-11 stock tracker report of NDB securities, plantation sector PE has been 8.28, so on ur suggestion if we value this;
8.28*0.46 = 3.8

The same report says Diversified is 24.92;
So 24.92*0.46 = 11.46

Now which one u'd prefer to follow?

xhora wrote:

smallville wrote:
AS per 16-05-11 stock tracker report of NDB securities, plantation sector PE has been 8.28, so on ur suggestion if we value this;
8.28*0.46 = 3.8

The same report says Diversified is 24.92;
So 24.92*0.46 = 11.46

Now which one u'd prefer to follow?

LoL Freedom of choice. Rep from me.

But consider this also
at 8.28 plantation PE our beloved KGAL will only worth
8.28 * 28.25 = 233.91 Oops..
(Source : http://forum.srilankaequity.com/t1744-rich-namu-kgal-all-in-one-value-analysis?highlight=KGAL)

Now which one u'd prefer to follow?

mark wrote:http://www.cse.lk/cmt/upload_report_file/1048_1305185889765.pdf

*The Company's name was changed from "Free Lanka Plantation Holdings Co. (Pvt) Ltd" to "Free Lanka Capital Holdings (Pvt) Ltd" effective
from 30th August 2010. The Company was subsequently converted into a Public Limited Liability Company on 31st January 2011 under section
11(1) of the Companies Act No. 7 of 2007. Accordingly, the name of Free Lanka Capital Holdings (Pvt) Ltd has been changed to Free Lanka
Capital Holdings Ltd.
--actually this may be better to list under plantation sector,so if there is interest on plantation sector,this share may get some upturn

Mr. Frodo wrote:Guys i just have one issue with this..
Since the P/E ratio is based on future earnings... and future expectancy is it fair to value FLCH on plantation PE alone..
As they are planning on building 2 Boutique hotels which is in the leisure sector and this has a very high P/E ratio and also there Energy sector which i presume has a high P/E ratio as well is it fair to value the present earnings of FLCH on the present plantation P/E ratio.
please correct me if i m mistaken

smallville wrote:Jeez.. that valuation was posted on March 12, when CSE announced plantation PE as 24.. Have you not seen its stated there as "Plantation Sector PE of 24.3;" he hee.. Even fair share valuation was given at a discount which is closer to CSE valuation of PLT PE as Still in CSE it says PLT PE = 17.50, broker valuation is based on cyclicality, risk, etc..
Also it was with the current earnings based..

Now I wonder why u wanna refer obsolete data rather than renewing it..
Have u seen me saying KGAL fair valuation is 250 recently, guess not

smallville wrote:

Mr. Frodo wrote:Guys i just have one issue with this..
Since the P/E ratio is based on future earnings... and future expectancy is it fair to value FLCH on plantation PE alone..
As they are planning on building 2 Boutique hotels which is in the leisure sector and this has a very high P/E ratio and also there Energy sector which i presume has a high P/E ratio as well is it fair to value the present earnings of FLCH on the present plantation P/E ratio.
please correct me if i m mistaken

FLCH is a diversified company.. Although its 99% plantations, with their growth plans this will be changed.. So its safe to assume its a diversified holder..