PLANTATION SECTOR

ErangaDS wrote: ELPL & TPL has more room for upside movement (PE 4.58 , 4.86 respectively)

 
ELPL heading towards 35

ErangaDS wrote:

ErangaDS wrote:   ELPL & TPL has more room for upside movement (PE 4.58 , 4.86 respectively)

 
ELPL heading towards 35

Broken 30 in style , good support at 32.

Maskeliya is still under value compared to other plantation stocks.
Their last 2 quarters were improved.

Global demand for tea, rubber gloves up



Thursday, September 17, 2020 - 01:00

Print Edition
Finance

Nuwancha wrote:@Kavindu  tell me ur views about MASK.N 

It should touch 16/=

Guys whats your target price for KVAL still 72/= ,yet to join the run. Is it  good to buy at 72/=? what will be the exist price?

shan31 wrote:Guys whats your target price for KVAL still 72/= ,yet to join the run. Is it  good to buy at 72/=? what will be the exist price?

80/= is a fair price for KVAL.

KVAL Rs 90.00 sure

Oil Palm -
Current Price - Rs 300/L
Same Quarter 2019 (06/2019 - 09/2019 ) - Rs 180/L (70%+)
Last Quarter (03/2020 - 06/2020) - Rs 240/L (25%+)
“Stocks to watch - NAMU , ELPL , WATA”

Raw rubber prices set to gain amid import ban
23 September 2020 10:09 am - 0 - 18

A A A


Raw rubber prices have already gained by nearly Rs.100 a kilo or 33% since July
Ban on rubber-based product imports likely to stay until local production increases
Ban on raw rubber imports unlikely as they aid local value addition and exports
Sri Lanka’s raw rubber prices, which remained depressed for many years, could see a rebound from the current import controls in place for rubber-based products, enhancing prospects for plantation companies and smallholders alike.


The government has restricted imports of rubber-based products, including tyres, as part of its broader curbs on non-essential imports, to contain the pressure on foreign exchange.


A recent plantation sector update released by equity brokerage SC Securities said “the import ban on rubber-based products will boost the demand for domestically produced rubber products” and thereby “will attract higher prices for locally produced rubber”.


According to SC Securities, a subsidiary of Sampath Bank PLC, the import controls on rubber-based products could stay for some time, as the government is keen on providing assistance to local rubber-based producers, to ramp up their production.


For instance, the local tyre producers this week requested the government to continue with the current restrictions on two-wheeler and three-wheeler tyre imports,

citing they have adequate capacity to meet the local demand and could also produce for foreign markets, adding more jobs at home.


The prices of raw rubber have already gained in recent months, providing some relief to the battered regional plantation companies and the smallholders, with continuously depressed natural rubber prices remained for about eight years.


According to the auction prices available on the Rubber Research Institute of Sri Lanka website, the Latex Crepe 1X category, which averaged at Rs.275 a kilogramme on July 2, rose to Rs.335 a kilogramme, at the auction held on August 27.


In the most recent auction held on September 17, the price gained by a further Rs.30 a kilogramme to Rs.365.
However, these prices are far from their peak of nearly Rs.600 reached in 2012.


Nevertheless, these high prices remained only for two years, before declining to around Rs.200, which made the industry unsustainable and sent many smallholders out of production.


Smallholders account for 65 percent of the rubber production.


According to Planters’ Association (PA) of Sri Lanka Immediate Past President Sunil Poholiyadde, the regional plantation companies were forced to offer work, as they had a permanent workforce and harvest latex in order to keep the workers employed, even though the cost of production was much higher than the sales average at the auction.


Speaking at the PA’s Annual General Meeting held last week, he said he negotiated three wage increases, despite the prices remaining largely static.


The government last month said it was considering limiting imports of raw rubber used in local value-added industries, to encourage and promote local rubber cultivation and thereby afford the growers a higher price.


It has been proposed to look at a model for rubber imports, by matching the imports by a value-addition company with the amount of rubber it procures domestically.


But such a model could hamstring the industry, as local rubber production is nowhere near what the manufactures consume, since production cannot be ratcheted up immediately and the sector woes run deep.The local rubber production is half the local demand. While the annual demand for both Latex and RSS categories is 150,000 metric tonnes, the local production is only 77,000 metric tonnes, forcing the rubber-based manufacturers to import the shortfall.


The manufacturers and exporters of rubber products in Sri Lanka charged that a mafia of middlemen was trying to artificially manipulate the prices of raw rubber, by hoarding stocks and lobbying the government to control imports, so that their stocks could be sold at elevated prices.


SC Securities said such restriction on raw rubber imports is unlikely, as such imports are used for local value addition, which generates jobs and export earnings.


For instance, the brokerage cited the improved demand for rubber gloves from Sri Lanka, during the pandemic.
“COVID-19 is driving the global demand for rubber gloves. Sri Lanka being one of the leading rubber glove producers, local demand for rubber is increasing, fetching higher prices,” SC Securities noted.

KavinduTM wrote:

gayan1987 wrote:How is the BALA for Mid term investment? Is the current price is good for collect?

Invest in BALA and KOTA if you can have strong holding power. At least 18 months (1 & half yr). As they are still having the curve. 

Look sharp KOTA is still trading below 7/=. It's true that the KOTA NAV was decreased by 66% over 3 years.Also BALA is having a (-) NAV of 14. But now they are starting to perform better now. KOTA June QR not released yet. Guess what will happen if it is positive. 

So according to my view if you are investing in plantation sector,


Invest 30% in BALA and KOTA. (BALA is trading below 14/= and KOTA is trading below 7/= .They are still in loses and warming up. Trading @low prices and even 100% gain is possible within couple years. But cannot expect a dividend sooner.)

Invest 60% in NAMU and KGAL. (They are already earning profits and paying good amounts of dividends , so if you are buying @current prices you will be able to get more than 9% dividend + capital gain.) Much better than FDs

You can wait and invest the remaining 10% in any other interested plantation after a good analysis.

Good Luck!

Congratulations guys. Enjoy your profits.

KavinduTM wrote:

vikey wrote:

KavinduTM wrote:

vikey wrote:

KavinduTM wrote:

vikey wrote:

KavinduTM wrote:

vikey wrote:I interest in KOTA, what is the best price to enter? Any target price?

Even 100% gain is possible. Try to collect @ a bargain price. Hope there will be a lil price correction tomo. I was recommending this below 7/=. I think you too will be able to collect it around 7=. Be patient and collect around 7. At least below 7.50/=
And if you can hold it more than a year, even 200% gain is possible.

Let's try tomo. I think @8 is possible.
what about HAPU? it is passed 21/-. around 22 will be a good price to enter?

Yeah @8 is so much possible but don't chase it as there might be a price correction and i guess you will be able to buy below 7.50/= Try to grab the chance @ the day's low ASAP.

No. I think this isn't the time to enter HAPU.

Okay. I’ll give a try. Thanks Kavindu

Were you able to collect it around 7.60/=?

Nope. But Collected @ 7.8

Good. Average it if possible.

@vikey Hope you still have them.

https://twitter.com/nimalhperera/status/1318463391741063168?s=20

Continue running KOTA....
Tomorrow

Nish 
What is the news on Kota. Who was the seller & buyer?

I think a big boss is inside

Please be more specific

Kipling wrote:Please be more specific

Not related to the topic, but..
Congratulations @Kipling on your 500th post 

Thank you Wonderer.

@kipling , congratz . I know its a hardwork to achieve 500 posts

Thank you Teller.

Jaya 
Any news on background story?

KOTA ,MADU ,KVAL

Good for KGAL and KVAL

Palm oil prices too up compared to last few months

good for
NAMU
ELPL
WATA

No One Talking about MAL Why i feel it also will move up soon

MAL Can give better return soon  at least 40%

MALWATTE VALLEY PLANTATIONS PLC

(MAL.N0000)
ISIN : LK0313N00003



[size]
CLOSING PRICE (RS.)
12.10
PREV CLOSE (RS.)
11.30[/size]
TURNOVER (RS.)
4,043,566.80
SHARE VOLUME
339,818
TRADE VOLUME
75
DAY`S PRICE RANGE (RS.)
12.50 - 11.00