Plantation - Is that real picture ?????

gaya · 1 Plantation - Is that real picture ????? Mon Aug 22, 2011 4:32 pm

gaya

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Plantation - Is that real picture ????? Shocked

This Qtr Plantation's profit have reduced due to 2 reasons.

1) Wage hike - This is a recurring item
2)Adjustment of Opening Balance of Gratuity Provision - This is a non recurring item.

eg; KGAL's Last qtr profit is Rs 30.9m and EPS is 1.27. But there is a hidden profit due to non recurring item called Adjustment of Opening Balance of Gratuity Provision It takes 123.4m (Refer NOTE No 7)

So actual / recurring EPS for this Qtr should be Rs 6.17 then Annualized should be 25.

When people realized those hidden jems in Plantation sector (Not all counters) like KGAL,HOPL,KOTA,NAMU they will start running. Some times we have to see till next
Qtr.. Sad

early · 2 Re: Plantation - Is that real picture ????? Mon Aug 22, 2011 5:37 pm

early

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Yes, plantation stocks should perform very well in the comming months as the climate too has been favourable, especialy for tea. Also rubber prices too are on average much better than few years back. So rubber heavy plantation companies too should continue to have favourable revenue increases. In addition to the shares you have mentioned, I think MAL(Malwatte Valley Plantation Co.) too is a share with very good future potential.

laka · 3 Re: Plantation - Is that real picture ????? Mon Aug 22, 2011 6:34 pm

laka

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gaya wrote:Plantation - Is that real picture ?????

This Qtr Plantation's profit have reduced due to 2 reasons.

1) Wage hike - This is a recurring item
2)Adjustment of Opening Balance of Gratuity Provision - This is a non recurring item.

eg; KGAL's Last qtr profit is Rs 30.9m and EPS is 1.27. But there is a hidden profit due to non recurring item called Adjustment of Opening Balance of Gratuity Provision It takes 123.4m (Refer NOTE No 7)

So actual / recurring EPS for this Qtr should be Rs 6.17 then Annualized should be 25.

When people realized those hidden jems in Plantation sector (Not all counters) like KGAL,HOPL,KOTA,NAMU they will start running. Some times we have to see till next
Qtr..

Plantation forecasted financial statement (Recurring)
http://forum.srilankaequity.com/t7774-plantations-forecasted-financial-reports-for-2011-2012

sajeethk · 4 Re: Plantation - Is that real picture ????? Mon Aug 22, 2011 7:25 pm

sajeethk

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In the plantation sector only under perform tea plantation. Rubber and palm oil still doing good.. may be tea plantation sector have major impact on wage hike.

Market.Player · 5 Re: Plantation - Is that real picture ????? Mon Aug 22, 2011 8:14 pm

Market.Player

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My advice - don't touch with Plantation stocks at this time. To me this is not a correct time because all plantations comming down. some will spred thier Gratuity charge during next 02 quarters.