LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)

Jana wrote:Seems like someone collecting by placing big sell orders..

Not Bad to buy @ 20/=

MoneyLover wrote:With due respect to all you opinions;

DP is continuously held around 29% of LALU even after his unsuccessful bid to take over the company 10 years ago (in 2011). He wanted to consolidate the aluminum industry where the key players are ALUM, PARQ, ALUF, and LALU, as he did in the Tile industry.  Presently, DP has control over the other player except for LALU. DP was waiting for the high time for 10 years, but finally seems he gave up the idea (coincident with the splitting) and started to sell his stake off.
Also sees that LALU is not attracted to institutional investors or HNWIs (see the top 20 shareholders list. No other except SLIC at No. 7 with a mere 0.5%.... where the public holding is 49.85%). Of course, we might able to earn something from LALU...no argument about it. 
But, it won't show an exceptional move .....

David VKMS wrote:Aluminum prices hit all time high in the month of May 2021 in the international Market.


The Aluminum price increase (increase in Cost of production) will have the impact on LALU's profitability. Further, Second largest share holders 19.8 Mn shares were absorbed by traders between Rs, 18 to 22 levels. 


There will be a profit taking in this week.


Retailer should be very causes with LALU 
Almost 49% public holding or 30Mn liquid shares available in the market

Update on existing post
I Learned from the market sources that High Net worth individual bought last few days.
According to the company management LALU use scarped aluminum (60%) as a raw material Witch will reduced the cost of production from the adverse aluminum price movement in the international market.

David VKMS wrote:

David VKMS wrote:Aluminum prices hit all time high in the month of May 2021 in the international Market.


The Aluminum price increase (increase in Cost of production) will have the impact on LALU's profitability. Further, Second largest share holders 19.8 Mn shares were absorbed by traders between Rs, 18 to 22 levels. 


There will be a profit taking in this week.


Retailer should be very causes with LALU 
Almost 49% public holding or 30Mn liquid shares available in the market

Update on existing post
I Learned from the market sources that High Net worth individual bought last few days.
According to the company management LALU use scarped aluminum (60%) as a raw material Witch will reduced the cost of production from the adverse aluminum price movement in the international market.

David VKMS wrote:  

	LKR
FY 2020/21	LALU	ALUM	PARQ
MPS	22.6	13.5	31.6
EPS	3.8	1.4	4.4
BVPS	26.4	5	19.7
PE (x)	5.95	9.64	7.18
PBV (x)	0.86	2.70	1.60
4QFY21 Annualized P/E (x)	2.45	4.12	3.44

Vasyan wrote:

David VKMS wrote:  

LALU is the best valuation compared to ALUM and PARQ based on present and future earnings

	LKR
FY 2020/21	LALU	ALUM	PARQ
MPS	22.6	13.5	31.6
EPS	3.8	1.4	4.4
BVPS	26.4	5	19.7
PE (x)	5.95	9.64	7.18
PBV (x)	0.86	2.70	1.60
4QFY21 Annualized P/E (x)	2.45	4.12	3.44

Thanks David!

what do you figure out ...LALU good OR bad to buy a bit more?

David VKMS wrote:
LALU is the best valuation compared to ALUM and PARQ based on present and future earnings

David VKMS wrote:

	LKR
FY 2020/21	LALU	ALUM	PARQ
MPS	22.6	13.5	31.6
EPS	3.8	1.4	4.4
BVPS	26.4	5	19.7
PE (x)	5.95	9.64	7.18
PBV (x)	0.86	2.70	1.60
4QFY21 Annualized P/E (x)	2.45	4.12	3.44

ONTHEMONEY wrote:

David VKMS wrote:

	LKR
FY 2020/21	LALU	ALUM	PARQ
MPS	22.6	13.5	31.6
EPS	3.8	1.4	4.4
BVPS	26.4	5	19.7
PE (x)	5.95	9.64	7.18
PBV (x)	0.86	2.70	1.60
4QFY21 Annualized P/E (x)	2.45	4.12	3.44

Hi DAVID VKMS,

Thanks for sharing, this is and EARNINGS SURPRISE for me speacially when you see FORWARD PE below 2.5x in LALU where tbe market PE is @ 14 now.

LALU should trade at least in a forward PE of 7~8x times. 

Last QUARTER EPS (MAR2021) = Rs 2.28

If LALU achieves 50% of EPS in all 3 remaining quarters;

Total forward EPS = Rs 5.7[Rs 2.28 + (1.14X3)]

Estimated Market Price = Rs 39.90(Rs 5.7 X 7)

Even if we consider the PBV it is well discounted and trading at 0.85 times. If its computed @ 1.5x the estimated market price is 39/-

Aluminum Sector OUTLOOK
--------------------------------

All ALUMINIUM companies is enjoying a heavenly DEMAND from individual customers/projects where they order goods now anticipating of a price hike in months to come. Hence, overall GROWTH OUTLOOK for aluminum and tiles VERY POSITIVE given the context where Sri Lanka has to block imports for next 9~12 months due to external trade balance crisis and to manage pressure on USD/LKR.

LALU and PARQ have high growth potential. However, LALU is the most UNDERVALUED. Most of these conpanies now enjoying PRE FILLED SALES BOOK. 

Good Luck

Note - Not a BUY or SELL RECOMMENDATION

Jana wrote:LALU now more people are talking about that because it is liquid stock now so more positive buyers attract this.

DD hold 3,962,999 before subdivision

after subdivisions should be he keeps (3,962,99985 * 5) = 19,814,995

but he keep end of march 12,476,365 = means (12,476,365/5)=2,495,273

so he sold 1,467,726 LALU before Subdivision means (1,467,726 *5)=7,338,630

So he holds after the march or  after subdivision == 12,476,365

last three days trading Qty only  17.287 Mn  

So seems like his stake cleared now So no more to wait to run or no more scared about selling pressure

LALU is one of the good pick and potential to go up easy

whoever has this no worries keep it ..you can easily make  30%

I already have some .. I am going to buy more when I sell my PRIME LAND IPO if the price keep remain

ONTHEMONEY wrote:

David VKMS wrote:

	LKR
FY 2020/21	LALU	ALUM	PARQ
MPS	22.6	13.5	31.6
EPS	3.8	1.4	4.4
BVPS	26.4	5	19.7
PE (x)	5.95	9.64	7.18
PBV (x)	0.86	2.70	1.60
4QFY21 Annualized P/E (x)	2.45	4.12	3.44

Hi DAVID VKMS,

Thanks for sharing, this is and EARNINGS SURPRISE for me speacially when you see FORWARD PE below 2.5x in LALU where tbe market PE is @ 14 now.

LALU should trade at least in a forward PE of 7~8x times. 

Last QUARTER EPS (MAR2021) = Rs 2.28

If LALU achieves 50% of EPS in all 3 remaining quarters;

Total forward EPS = Rs 5.7[Rs 2.28 + (1.14X3)]

Estimated Market Price = Rs 39.90(Rs 5.7 X 7)

Even if we consider the PBV it is well discounted and trading at 0.85 times. If its computed @ 1.5x the estimated market price is 39/-

Aluminum Sector OUTLOOK
--------------------------------

All ALUMINIUM companies is enjoying a heavenly DEMAND from individual customers/projects where they order goods now anticipating of a price hike in months to come. Hence, overall GROWTH OUTLOOK for aluminum and tiles VERY POSITIVE given the context where Sri Lanka has to block imports for next 9~12 months due to external trade balance crisis and to manage pressure on USD/LKR.

LALU and PARQ have high growth potential. However, LALU is the most UNDERVALUED. Most of these conpanies now enjoying PRE FILLED SALES BOOK. 

Good Luck

Note - Not a BUY or SELL RECOMMENDATION