I recommend KHC is worth buying at current pricing levels at Rs. 8.50 for a medium to long term investment due to following reasons;
· Net Asset Value per share increased from Rs. 10.55 to Rs. 10.62
· Earnings Per Share for FY14-15 is Rs. 0.24
· Current trading at Rs. 8.30 – 8.60 levels
· Dividend per share – Rs. 0.20 (FY13-14)
· New 122 rooms OZO project has to be completed by now. Waiting for the company announcement.
· Top 20 list is hardly changed and contains approx. 95.5% of shares among them
· Company is managing funds effectively for new developments without going for right issues
· Continuous dividend payouts
· Future potential of tourism boom in the country (specially in the Kandy region) and therefore will give more profitability to the company
· Hotel chain is targeting second tier tourists and therefore expected more demand in the future
Below trend pattern is from THE FINANCIAL TIMES LTD.
http://markets.ft.com/research/Markets/Tearsheets/Summary?s=KHC.N0000:CSE