I can see clearly see that high finance cost, high cost of sales hinder the profits of KOTA.. Wat do u guys think??
Sector PE as in latest NDB report is 8.24. This is an adjustment figure for risk & cyclicality.
Hypothesis:
Due to plantation reports being good on other companies, expected growth for the Qtr is 30%
For keeping it simple, 9 months EPS for both companies are annualised
KGAL
Annualised EPS = 22.87/3*4 = 30.49
Trading PE = 221.1/30.49 = 7.24 @ PE mulitple of 0.88X
Sector PE valuation for annualised EPS Growth = 251/-
Last Qtr EPS = 9.15
Expected EPS for the Qtr = 9.15*130% = 11.895
Expected EPS for the year = (22.87 + 11.895) = 34.765
Sector PE valuation for expected EPS Growth = 286/-
KOTA
Annualised EPS = 15.4/3*4 = 20.53
Trading PE = 175.9/20.53 = 8.56 @ PE mulitple of 1.03X
Sector PE valuation = 169.2/-
Last Qtr EPS = 7.46
Expected EPS for the Qtr = 7.46*130% = 9.698
Expected EPS for the year = (15.4 + 9.698) = 25.1
Sector PE valuation for expected EPS Growth = 206/-
Last edited by smallville on Fri May 27, 2011 8:20 am; edited 1 time in total (Reason for editing : Added more info..)