ELPITIYA PLANTATIONS PLC-(ELPL.N0000) has recorded good results.....i think......

ccsentha

ccsentha

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Guys what about the results of ELPITIYA PLANTATIONS PLC-(ELPL.N0000)?
(http://www.cse.lk/cmt/upload_report_file/707_1306740433029.pdf)

12months ended on 31st march
2010 EPS - 1.23
2011 EPS - 4.99

6 months ended on march 31st
2010 EPS - 0.74
2011 EPS - 3.45

doesn't this sound like a good improvement?? will the price go up??

thanks

Slstock

Slstock

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ccsentha wrote:Guys what about the results of ELPITIYA PLANTATIONS PLC-(ELPL.N0000)?
(http://www.cse.lk/cmt/upload_report_file/707_1306740433029.pdf)

12months ended on 31st march
2010 EPS - 1.23
2011 EPS - 4.99

6 months ended on march 31st
2010 EPS - 0.74
2011 EPS - 3.45

doesn't this sound like a good improvement?? will the price go up??

thanks

Yes good results were expected from ELPL as another member posted about this in another thread before results. ( san1985)

If the market behaves rationally ELPL needs to go up. But will it sustain? I think plantation sector should be discounted but not at the prevailing levels which is absurd. ( PE of around 6 is a bit less when market PEs are over 3 times higher).

dr aruna

dr aruna

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today is a month end ELPL will move more on tomorrow onward , might go RS 50 within three to four days time ...................................

Intrinsic

Intrinsic

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slstock wrote:

Yes good results were expected from ELPL as another member posted about this in another thread before results. ( san1985)

If the market behaves rationally ELPL needs to go up. But will it sustain? I think plantation sector should be discounted but not at the prevailing levels which is absurd. ( PE of around 6 is a bit less when market PEs are over 3 times higher).

@ slstock,

What does a low PE indicate against sector PE ? (when all other indicators, ratios are ignored)

PER = MPS/EPS
MPS = 36.40 (as at yesterday)
EPS (ttm) = 4.99 ( as per ELPL FR)

So PER = 36.40/4.99 = 7.29

PLT sector PER = 16.40 (as per CSE website)

Does it say, ELPL PER could possibly reach near 16.40 ?

In other words MPS could be 16.40 X 4.99 = 81.84 @ IDEAL situation ?

At 50% discount 40.00 ?

Please correct me slstock.

Slstock

Slstock

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Intrinsic wrote:

slstock wrote:

Yes good results were expected from ELPL as another member posted about this in another thread before results. ( san1985)

If the market behaves rationally ELPL needs to go up. But will it sustain? I think plantation sector should be discounted but not at the prevailing levels which is absurd. ( PE of around 6 is a bit less when market PEs are over 3 times higher).

@ slstock,

What does a low PE indicate against sector PE ? (when all other indicators, ratios are ignored)

PER = MPS/EPS
MPS = 36.40 (as at yesterday)
EPS (ttm) = 4.99 ( as per ELPL FR)

So PER = 36.40/4.99 = 7.29

PLT sector PER = 16.40 (as per CSE website)

Does it say, ELPL PER could possibly reach near 16.40 ?

In other words MPS could be 16.40 X 4.99 = 81.84 @ IDEAL situation ?

At 50% discount 40.00 ?

Please correct me slstock.

One thing to note is cse.lk is not most up to date for Sector PE. So taking 16.5 will be of course too high. With the current earnings plantation sector PE should be less. ( broker reports would have latest updates)

Anyway, what I meant is strong plantation shares does not have to trade at these absurdly low PE as of today (Pe of 5-7).
Yes due to volatility we should discount plantation sector PE to market but the issue is what is the level? If we agree that plantation should trade at discounted Pe of 9-10 will the market do so? It is not currently. Just look at KGAL, MAL, HOPL , NAMU, and ELPL now etc etc to name a few which I think is trading far too low.

In summary the market is discounting the good plantation far too low even considering the volatility. Lets hope these stronger plantation shares get what they deserve a raise

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ELPITIYA PLANTATIONS PLC-(ELPL.N0000) has recorded good results.....i think......

1 ELPITIYA PLANTATIONS PLC-(ELPL.N0000) has recorded good results.....i think...... Mon May 30, 2011 10:35 pm

ccsentha

2 Re: ELPITIYA PLANTATIONS PLC-(ELPL.N0000) has recorded good results.....i think...... Tue May 31, 2011 2:56 am

Slstock

3 Re: ELPITIYA PLANTATIONS PLC-(ELPL.N0000) has recorded good results.....i think...... Tue May 31, 2011 8:11 am

dr aruna

4 Re: ELPITIYA PLANTATIONS PLC-(ELPL.N0000) has recorded good results.....i think...... Tue May 31, 2011 8:42 am

Intrinsic

5 Re: ELPITIYA PLANTATIONS PLC-(ELPL.N0000) has recorded good results.....i think...... Tue May 31, 2011 9:01 am

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6 Re: ELPITIYA PLANTATIONS PLC-(ELPL.N0000) has recorded good results.....i think......

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