AEL TP in Super September

sak · 1 AEL TP in Super September Sat Sep 04, 2021 9:11 pm

sak

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What will be the TP for this share . I guess coming weeks if market perform well this can reach to 30 + flower

Open to the Forum for valuable thoughts & comments .

Smile

Hawk Eye · 2 Re: AEL TP in Super September Sun Sep 05, 2021 6:30 pm

Hawk Eye

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If you carefully look at AEL, gross profit is dropping Q2Q

Gross Profit
Dec 20 - 20%
Mar 20- 18%
Jun 21 - 15%

This is the effect of increasing cost of sale, due to heavily dependent om imports on construction RM. The dollar rate going to take a toll in September Qtr
Sri Lanka has one of the highest construction costs in the SAARC region, creating significant concerns

Several key materials required for construction are not available in sufficient quantities from domestic manufacturers and thus, developers are reliant on importing them. Cement, steel, wires, tiles, kitchens are just a few examples.

https://iconic.lk/the-effect-of-covid-19-on-the-high-cost-of-construction-in-sri-lanka/

Current macro Economic conditions not going to favour AEL in coming quarters.

samaritan · 3 Re: AEL TP in Super September Sun Sep 05, 2021 8:10 pm

samaritan

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For a construction company the earnings depends on the stages of project completion and payments received etc. If and when a project is completed there can be a surge in earnings. It is quite different to trading and manufacturing sector companies.

Last friday the market witnessed a staggering 7.6Million AEL shares transacted reaching a high of Rs 25/50. In my opinion this did not take place without a reason. I am in no doubt that there is positive news on the way.

We can see that tomorrow.