Good to Focus on Exporting Companies-TJL crossing at 12.50

Redbulls wrote:After the crossing the stock may be transferred to a margin account in one of the bank.
So much gilmart are going on in CSE.

Monster wrote:Most likely it was sold by INDRA FINANCE LTD. I assume it's an internal transfer rather than the sale. Anyhow, considering the facts mentioned by kam2011, TJL is best by at this price.

illuminati wrote:

Monster wrote:Most likely it was sold by INDRA FINANCE LTD. I assume it's an internal transfer rather than the sale. Anyhow, considering the facts mentioned by kam2011, TJL is best by at this price.

One thing everybody ignores ( very conveniently) is how about the raw material TJL imports to manufacture their fabric. Do they have to pay more or less ? Guess....

Rajaraam wrote:

illuminati wrote:

Monster wrote:Most likely it was sold by INDRA FINANCE LTD. I assume it's an internal transfer rather than the sale. Anyhow, considering the facts mentioned by kam2011, TJL is best by at this price.

One thing everybody ignores ( very conveniently) is how about the raw material TJL imports to manufacture their fabric. Do they have to pay more or less ? Guess....

Yes illu, there is a point. But TJL should have at least 35%-40% value addition. Just workout the benefit only on value addition. (35% x 20%)Still they have an increase of 7% minimum on totat value. That would increase the profit of TJL significantly. I think you could agree with me.

illuminati wrote:

Monster wrote:Most likely it was sold by INDRA FINANCE LTD. I assume it's an internal transfer rather than the sale. Anyhow, considering the facts mentioned by kam2011, TJL is best by at this price.

One thing everybody ignores ( very conveniently) is how about the raw material TJL imports to manufacture their fabric. Do they have to pay more or less ? Guess....

hariesha wrote:

Rajaraam wrote:

illuminati wrote:

Monster wrote:Most likely it was sold by INDRA FINANCE LTD. I assume it's an internal transfer rather than the sale. Anyhow, considering the facts mentioned by kam2011, TJL is best by at this price.

One thing everybody ignores ( very conveniently) is how about the raw material TJL imports to manufacture their fabric. Do they have to pay more or less ? Guess....

Yes illu, there is a point. But TJL should have at least 35%-40% value addition. Just workout the benefit only on value addition. (35% x 20%)Still they have an increase of 7% minimum on totat value. That would increase the profit of TJL significantly. I think you could agree with me.

Would like to add to this conversation:

Cotton prices are down by more than 50% during last 12 months. TJL had heavy stocks up to September, which were bought at higher prices. But now I think they are over, as seen in last quarter results. So we can expect more profitability in TJL and other shares in the sector.

chamith wrote:

illuminati wrote:

Monster wrote:Most likely it was sold by INDRA FINANCE LTD. I assume it's an internal transfer rather than the sale. Anyhow, considering the facts mentioned by kam2011, TJL is best by at this price.

One thing everybody ignores ( very conveniently) is how about the raw material TJL imports to manufacture their fabric. Do they have to pay more or less ? Guess....

I read about this somewhere.

These exporting oriented companies get their revenue in USD. They keep the money in USD it self in foreign a/c or in a USD a/c in Sri Lanka. Therefore they dont have to buy USD to purchase raw material as they already got USD in their A/c.

Another tactic is trade agreements. Export and get USD, and at the sametime buy raw materials without brining that USD to SL.

Therefore raw materials cost does not go up due to rupee depreciation.

npp wrote:does TJL export fabric? what is their exposure?

depreciation will help Garment factories though. OGL is the only one and I don't know about their business

Rajaraam wrote:

npp wrote:does TJL export fabric? what is their exposure?

depreciation will help Garment factories though. OGL is the only one and I don't know about their business

There are two type of fabric, 1) woven fabric 2) Knitted fabric. World demand for Knitted fabric is increasing rapidly.Knitted fabricis is used for T shirts, Warm cloths etc. TJL is mainly an exporter and also they are a indirect exporter as well. That means they supply fabric to knitted garment exporter too.

Monster wrote:Rupee value depreciation would benefit for the following exports oriented companies,

1). DIPD
- A unit of Hayleys, one of the pioneer manufacture and exporter of medical glove.
- Good plantation subsidiary KVAL

2). HAYC
- A unit of Hayleys, world's largest coconut shell based activated carbon manufacturer.
- Insiders have been buying shares in the past 3 months

kam2011 wrote:

Monster wrote:Rupee value depreciation would benefit for the following exports oriented companies,

1). DIPD
- A unit of Hayleys, one of the pioneer manufacture and exporter of medical glove.
- Good plantation subsidiary KVAL

2). HAYC
- A unit of Hayleys, world's largest coconut shell based activated carbon manufacturer.
- Insiders have been buying shares in the past 3 months

Ye, you are right Monster, They are exporting if I am correct nearly 99% of their output. Export income will go up Around 20% due to LKR depriciation. May be big winners of the depriciation.

kam2011 wrote:

Monster wrote:Rupee value depreciation would benefit for the following exports oriented companies,

1). DIPD
- A unit of Hayleys, one of the pioneer manufacture and exporter of medical glove.
- Good plantation subsidiary KVAL

2). HAYC
- A unit of Hayleys, world's largest coconut shell based activated carbon manufacturer.
- Insiders have been buying shares in the past 3 months

Ye, you are right Monster, They are exporting if I am correct nearly 99% of their output. Export income will go up Around 20% due to LKR depriciation. May be big winners of the depriciation.