HOPL.N vs MAL.N vs ELPL.N

wgsaman · 1 HOPL.N vs MAL.N vs ELPL.N Wed Jun 08, 2011 10:28 pm

wgsaman

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What is the best one?

wgsaman · 2 Re: HOPL.N vs MAL.N vs ELPL.N Thu Jun 09, 2011 8:01 am

wgsaman

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Seniors Can I get your ideas..

GJ · 3 Re: HOPL.N vs MAL.N vs ELPL.N Thu Jun 09, 2011 8:07 am

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wgsaman wrote:What is the best one?

HOPL is giving Rs4.00 dividend so it is good and their EPS is under 14.00
ELPL best, MAL -EPS under 18.00 (i thing befor split so now it will be 1.80) it is also good,but plantation sector is down due to wage hike so get more advice from your broker ------this is my personal opinion

wgsaman · 4 Re: HOPL.N vs MAL.N vs ELPL.N Thu Jun 09, 2011 9:39 am

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Thanks GJ

yoyo · 5 Re: HOPL.N vs MAL.N vs ELPL.N Thu Jun 09, 2011 10:34 am

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GJ wrote:

wgsaman wrote:What is the best one?

HOPL is giving Rs4.00 dividend so it is good and their EPS is under 14.00
ELPL best, MAL -EPS under 18.00 (i thing befor split so now it will be 1.80) it is also good,but plantation sector is down due to wage hike so get more advice from your broker ------this is my personal opinion

Dear Friend,
Dont get advice of brokers. Most of them are blood suckers of poor retailers.. You will regret after getting advice of brokers. You can analyze yourself and go through this forum and purchase at bottom prices. Broker will ask you to buy anything at top, they dont care about the customers wealth since they are getting the brokerage for any transaction

wgsaman · 6 Re: HOPL.N vs MAL.N vs ELPL.N Thu Jun 09, 2011 11:01 am

wgsaman

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100% correct dear yoyo

GJ · 7 Re: HOPL.N vs MAL.N vs ELPL.N Thu Jun 09, 2011 4:14 pm

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wgsaman wrote:100% correct dear yoyo

i am also agree

Prince · 8 Re: HOPL.N vs MAL.N vs ELPL.N Thu Jun 09, 2011 5:31 pm

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ELPL I would say.

pls see following information.

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 anagements 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 105.95
Relative Valuation

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.

factFINDER · 9 Re: HOPL.N vs MAL.N vs ELPL.N Thu Jun 09, 2011 7:12 pm

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Prince wrote:ELPL I would say.

pls see following information.

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 anagements 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 105.95
Relative Valuation

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.

True, ELPL is one of the well diversified planatation stock with future potientials. Also NAMU and WATA. Since they are maintain good product mix, some times less riskier.

However, when considering investmrnt rations (Trailing) ELPL is not the best stock in the sector. I noticed some variations in figures of your rations and my calculations;

Last 4Q
EPS (ELPL) is 4.99 and @35.60 PER should be 7.14 and at todays price of 33/- PER 6.62.

However, MAL & HOPL shows better valuation
MAL @9.50 PER 4.29
HOPL @70.5 PER 5.41 (Also HOPL announced very attrective divid)

Also I dont think the sector PER taken (i.e. 17.2x) is not realistic at all, due to many factors Plantation stocks traded discount to the market and according to my openion the sector may trade at PER 8-10 in medium term. So, though the most of plantation stocks are undervalued, not as much as 70%.

This is my openion ..... you do your own analysis before take buy/sell/hold decision.

If you interested to see numerical comparison, I invite you to look at the attached worksheet which I already shared with members here. http://forum.srilankaequity.com/t4360-a-quick-comparison-of-plantation-stocks-valuation-guide