COCO Lanka

sapumal · 1 COCO Lanka Fri Feb 18, 2011 10:37 am

sapumal

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What they doing ?
What is their business ?
Does it has further upside ?
thanks

Last edited by Quibit on Fri Feb 18, 2011 11:52 am; edited 1 time in total (Reason for editing : format condensed)

Monster · 2 Re: COCO Lanka Fri Feb 18, 2011 11:28 am

Monster

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Their profit dropped heavily in Q3 is due to high cost of raw materials because of bad weather condition. But they will do better in the future. Same thing happend to HAYC. Coconut shell charcoal price went up for the same reason. (Major reason why coconut price went up is due to bad weather condition)

sapumal · 3 Re: COCO Lanka Fri Feb 18, 2011 12:32 pm

sapumal

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still they have good EPS of 2.38. Does it include any irregular profits ?

cse.alpha · 4 Re: COCO Lanka Fri Feb 18, 2011 3:10 pm

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COCO posted 3Q11 net profit of Rs56 mn, up 38% YoY, but down 64% QoQ

* The volatility mainly arises from mark to market (M2M) adjustments on its equity portfolio
- COCO had a -Rs7 mn M2M charge in 3Q11, despite capital gains on the sale of subsidiary RAL shares during quarter
- In contrast, its cumulative 1-3Q11 results show a Rs104 mn positive M2M impact

* Coconut product export business is carried out by subsidiary RAL, which did not report 3Q results, but it likely to be facing a difficult time due to high coconut prices and a strong SLRs currency

* Cash positive balance sheet can be utilised for further investments
- COCO had a rights issue in early 2010, but the funds were not used for the earmarked investment and invested mainly in shares

* Given mix of income from more stable, but under-performing food sector, and volatile, but out-performing stock market, COCO's fair valuation needs to be assessed carefully

* Although its book value per share is Rs46, net asset value likely to be higher after considering market value of listed subsidiary RAL