ELPL - Elpitiya Plantation PLC

What is the future outlook of this plantation?They are rich in both rubber and oil palm.

EPS for 6 months ended 30.09.2010 is 3.08. Annualized EPS 6.16.(I think we can expect much better results due to rocketed rubber price in the last quarter. So i see nothing wrong with annualizing the EPS.)

NAVPS as at 30.09.2010 is 30.52. Currently trading at 35.6. So the trailing PER comes to 5.78(35.6/3.06).

Sector PE as in latest NDB report is 8.24. This is an adjustment figure for risk & cyclicality. (As mentioned by smallville in another thread)

(I think this PE of 8.24 is a more conservative figure, In May Asha Phillip Research Report Sector PER is mentioned as 17.2)

So at this PE ELPL can be valued at 50.

Please share your ideas...

Is it a good buy at current price levels?

san1985 wrote:What is the future outlook of this plantation?

They are rich in both rubber and oil palm.

EPS for 6 months ended 30.09.2010 is 3.08.
Annualized EPS 6.16.(I think we can expect much better results due to rocketed rubber price in the last quarter. So i see nothing wrong with annualizing the EPS.)

NAVPS as at 30.09.2010 is 30.52.

Currently trading at 35.6.

So the trailing PER comes to 5.78(35.6/3.06).

Sector PE as in latest NDB report is 8.24. This is an adjustment figure for risk & cyclicality.
(As mentioned by smallville in another thread)

(I think this PE of 8.24 is a more conservative figure, In May Asha Phillip Research Report Sector PER is mentioned as 17.2)

So at this PE ELPL can be valued at 50.

Please share your ideas...

Is it a good buy at current price levels?

Did you consider the share split into your calculation? ( there was 2 share 1 spilt sometime last year.)
I saw Asha Phllips also in accounting it in one of their reports.

But overall ELPL is another good plantation share to keep an eye open for. ELPL has a crop mix and also diversified interests. They report financials every 6 months and one is due this quarter. Already under my radar.

A extract from the latest report of Asha Phillips stock Brokers

Company : Elpitiya Plantation PLC
Sector : Plantation
Market Price : Rs 35.60/-

Introduction
Elpitiya Plantations PLC (EPP) consist of 13 estates, situated in the Up, Mid and Low country regions owned and managed by Aitken Spence Plantation Managements Ltd. These estates which are cultivated with Tea, Rubber, Oil Palm, and Coconut, were taken over by Aitken Spence Plantation Managements Ltd from M/s Carsons in 1997. The company has also ventured into other areas such as Oil Palm Milling, Hydro Power, Furniture Manufacture, Eco Tourism, and Cinnamon Planting.

Key Financials
.................................6M 2011/12.........6M 2010/11......Change
Turnover......................1,202,446..............956,258...........26%
Net Profit.......................112,069................25,530..........339%
Equity Holders Fund.......1,111,850..............635,473...........75%
Total Assets.................3,563,252...........3,201,270...........11%
EPS................................3.08....................1.02............202%
Annualised EPS.................6.16....................2.46
NAVS 30.52

Relative Valuation
MPS 35.6
Trailing PER 5.78
Sector PER 17.2
Market PER 26.2
Possible Price level @ sector PER
Relative Valuation Rs. 105.95

Investment Rationale
It is expected that ELPL will record an exceptional 6 months period where the company will come up with sound financial results. These exceptional performances mainly due to the increased commodity prices prevailed in the world market during the last 6 months period.
Based on the available financial figures this is drastically discounted share, since, this trades at a PER of 5.8X against the sector PER of 17.2x, recording more than 70% discount. It is predicted that undervaluation will further increase significantly based on the remaining 6 months figures. It is forecasted that 2nd semi annual profit figure will exceptionally change the prevailing financial figures for this year on exceptional positive way. In the light of increased commodity prices ELPL will be a good buy for short and medium term.

Prince wrote:A extract from the latest report of Asha Phillips stock Brokers

Company : Elpitiya Plantation PLC
Sector : Plantation
Market Price : Rs 35.60/-

Introduction
Elpitiya Plantations PLC (EPP) consist of 13 estates, situated in the Up, Mid and Low country regions owned and managed by Aitken Spence Plantation Managements Ltd. These estates which are cultivated with Tea, Rubber, Oil Palm, and Coconut, were taken over by Aitken Spence Plantation Managements Ltd from M/s Carsons in 1997. The company has also ventured into other areas such as Oil Palm Milling, Hydro Power, Furniture Manufacture, Eco Tourism, and Cinnamon Planting.

Key Financials
.................................6M 2011/12.........6M 2010/11......Change
Turnover......................1,202,446..............956,258...........26%
Net Profit.......................112,069................25,530..........339%
Equity Holders Fund.......1,111,850..............635,473...........75%
Total Assets.................3,563,252...........3,201,270...........11%
EPS................................3.08....................1.02............202%
Annualised EPS.................6.16....................2.46
NAVS 30.52

Relative Valuation
MPS 35.6
Trailing PER 5.78
Sector PER 17.2
Market PER 26.2
Possible Price level @ sector PER
Relative Valuation Rs. 105.95

Investment Rationale
It is expected that ELPL will record an exceptional 6 months period where the company will come up with sound financial results. These exceptional performances mainly due to the increased commodity prices prevailed in the world market during the last 6 months period.
Based on the available financial figures this is drastically discounted share, since, this trades at a PER of 5.8X against the sector PER of 17.2x, recording more than 70% discount. It is predicted that undervaluation will further increase significantly based on the remaining 6 months figures. It is forecasted that 2nd semi annual profit figure will exceptionally change the prevailing financial figures for this year on exceptional positive way. In the light of increased commodity prices ELPL will be a good buy for short and medium term.

Welcome to the forum buddy.......

slstock wrote:

san1985 wrote:What is the future outlook of this plantation?

They are rich in both rubber and oil palm.

EPS for 6 months ended 30.09.2010 is 3.08.
Annualized EPS 6.16.(I think we can expect much better results due to rocketed rubber price in the last quarter. So i see nothing wrong with annualizing the EPS.)

NAVPS as at 30.09.2010 is 30.52.

Currently trading at 35.6.

So the trailing PER comes to 5.78(35.6/3.06).

Sector PE as in latest NDB report is 8.24. This is an adjustment figure for risk & cyclicality.
(As mentioned by smallville in another thread)

(I think this PE of 8.24 is a more conservative figure, In May Asha Phillip Research Report Sector PER is mentioned as 17.2)

So at this PE ELPL can be valued at 50.

Please share your ideas...

Is it a good buy at current price levels?

Did you consider the share split into your calculation? ( there was 2 share 1 spilt sometime last year.)
I saw Asha Phllips also in accounting it in one of their reports.

But overall ELPL is another good plantation share to keep an eye open for. ELPL has a crop mix and also diversified interests. They report financials every 6 months and one is due this quarter. Already under my radar.

@slstock is correct, above mentioned NAV is before share slit.
As of 30th Sept 2010 shareholders equity --> Rs 1,111.85 million
Number of shares --> 72,866,428
Net Asset per Share --> Rs 15.26

Besides plantation, the company has recently ventured into other areas such as Oil Palm Milling, Hydro Power, Furniture Manufacture, Eco Tourism, and Cinnamon Planting.

For more information about the future investment projects,
http://www.elpitiya.com/docs/investments.pdf

Reports are out
http://www.cse.lk/cmt/upload_report_file/707_1306740433029.pdf

There is a crossing of 800,000 shares at 30/- while market price is 25/-