FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» A Strong bounce back of ASI is on the cards
by samaritan Today at 11:13 am

» Maldives records over 100,000 tourist arrivals in first 35 days of the year
by samaritan Today at 9:59 am

» Kind of behavior traders engage in when they are frustrated and want their money back from the market. Stock market for beginners
by lal62 Today at 7:40 am

» Many positives for Next week
by madukp Today at 3:22 am

» EXPO EXPO EXPO
by Gowri123 Today at 12:35 am

» GLAS will be winner with Super Gain.
by Eranga87 Yesterday at 9:50 pm

» still I believe this
by 100Bill Yesterday at 9:21 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by ErangaDS Yesterday at 8:19 pm

» Investor sentiment - will there ever be a recovery?
by xhunter Yesterday at 7:49 pm

» Let's have a stop-loss strategy to maximize investment returns in stock market
by EquityChamp Yesterday at 7:19 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 6:56 pm

» Norway -> biggest shareholder of NDB
by Bakkabwoi Yesterday at 6:42 pm

» DIPD/HAYC/HAYL
by samaritan Yesterday at 5:41 pm

» කොටස් මිල දී ගන්න මෙය හොඳම කාලයයි – රාජ්‍ය අමාත්‍ය කබ්රාල්
by samaritan Yesterday at 5:07 pm

» IS it right time to stick to warren buffett's most famous saying ???
by Mr. X Yesterday at 4:02 pm

» CSE - The World's best performer!
by Vishwanarth Yesterday at 2:42 pm

» Best Broker
by Wickyz Yesterday at 2:32 pm

» Game Changed! SUPER GREEN
by Karthick Yesterday at 12:24 pm

» Blue Diamond
by thavam_Eu Yesterday at 12:07 pm

» GALORE OF GOOD NEWS TO THE CSE
by Bakkabwoi Yesterday at 11:58 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » KOTA - An analysis

KOTA - An analysis

Go down  Message [Page 1 of 1]

1KOTA - An analysis Empty KOTA - An analysis Thu Mar 17, 2011 7:01 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Here's a small analysis done for KOTA, some of the information (outlook, explanatory notes on revenue) have been taken from JKSB reports for further enlightening;

Kotagala Plantations PLC engages in the cultivation, manufacture, and sale of tea and rubber in Sri Lanka. The company was founded in 1992 and is based in Colombo, Sri Lanka. Kotagala Plantations PLC is a subsidiary of Lankem Plantation Holdings Limited.

Name No. of Shares Percentage %
1 Lankem Plantation Holdings Ltd 12,100,000 37.81%
2 Lankem Tea & Rubber Plantations (Pvt) Ltd 9,602,100 30.01%
3 Secretary to the Treasury 3,800,556 11.88 %

Kotagala Plantations Plc (KOTA) posted Rs. 56 million in PAT for 1QFY11, declining 7% over the comparative quarter albeit an 18% increase in revenue driven by high commodity prices. The fall in earnings was attributed to the increase in cost of production over the 1QFY10
Despite lower gross margins at group level, operating profit in 1QFY11 recorded a 4% yoy growth thanks to significant savings on administrative expenses due to better efficiency. Certain cost items that were previously included under administrative expenses have been transferred to direct costs, thereby reducing the indirect costs. Net finance costs remained high during the quarter as long term interest bearing borrowings almost doubled from the end of 1QFY10.

In January 2010, the company acquired a 19.84% stake in C. W. Mackie PLC and a 41.7% stake in York Hotels (Kandy) Ltd. on March 2010.

Last few qtrs earnings without other income;

31/12/2010 - 223.9 Mn
30/09/2010 - 126.16 Mn
30/06/2010 - 47.58 Mn
31/03/2011 - 79.6 Mn

Profit for last 04 Qtrs - 477.24 Mn
No. of Shares : 32 Mn
EPS = 14.91

KOTA can be Valued at Plantation Sector PE of 24.3;

Sector PE Share Valuation = EPS 14.91 x PER 23.75 = Rs. 354.11/- level.

Due to KOTA's high exposure to Tea which can be affected from wage hike, uncertainity, etc... lets take Fair Value of sector PE as a 50% discount to normal value which is 12.15, hence if we re-calculate taking this as the fair sector PE;

Fair Share Valuation = EPS 14.91 x Fair sector PER 12.15 = Rs. 181.16/- level.
Current Share Price = Rs. 168.8/-

On technical basis, counter attracts all indicators to be on up side;
http://investing.businessweek.com/research/stocks/charts/charts.asp?ticker=KOTA:SL

Future Outlook;
KOTA, with around 4,989 hectares under rubber cultivation, is one of the larger rubber producers in the country.
The company produces both latex crepe and sole crepe, both of which have seen sharp increase in price levels. The company is now fully equipped to manufacture all 3 kinds of sheet rubber; pale crepe, sole crepe and RSS. In addition to its current product portfolio of tea and rubber, KOTA has embarked on a program of utilising its uncultivated bare land in the low country with Palm oil in FY11. Initially, around 110 hectares will be cultivated and it is expected to increase up to 1,000 hectares in the coming years, which should have a positive impact on group earnings in the medium term.
KOTA’s tea production is dominated by high grown teas which account for as much as 75% while the remainder is low grown teas.

On the contrary, rubber prices may have a small hard time due to Japan's Tsunami crisis, therefore; a reduction in Q2FY12 could also be evident. However Q1 results would not be heavily affected as by 31-03-11, the qtr is over.
However, counter is poised ot perform better or if worst at the current rates..

Future outlook was taken from JKSB report.. So Up to you for further analysis...



Last edited by smallville on Sat Mar 19, 2011 2:00 pm; edited 1 time in total (Reason for editing : mentioning of extracts from JKSB report)

2KOTA - An analysis Empty sory Sat Mar 19, 2011 11:48 am

silentsahan

silentsahan
Senior Equity Analytic
Senior Equity Analytic
scratch



Last edited by silentsahan on Sat Mar 19, 2011 11:52 am; edited 1 time in total (Reason for editing : cant Resize)

3KOTA - An analysis Empty Re: KOTA - An analysis Sat Mar 19, 2011 11:50 am

silentsahan

silentsahan
Senior Equity Analytic
Senior Equity Analytic
KOTA - An analysis Kota11

4KOTA - An analysis Empty Re: KOTA - An analysis Sat Mar 19, 2011 2:26 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
KOTA - An analysis Kota11

5KOTA - An analysis Empty Re: KOTA - An analysis Sat Mar 19, 2011 2:58 pm

glwking

glwking
Manager - Equity Analytics
Manager - Equity Analytics
@smallville wrote:
Last few qtrs earnings without other income;

31/12/2010 - 223.9 Mn
30/09/2010 - 126.16 Mn
30/06/2010 - 47.58 Mn
31/03/2011 - 79.6 Mn

Profit for last 04 Qtrs - 477.24 Mn
No. of Shares : 32 Mn
EPS = 14.91

smallville,
Just a small clarification. Why should we deduct other income when we calculate EPS. If we calculate last 4 quarter EPS with other income we should get EPS 19.32. Similarly PE should be 8.4.

This is for all senior guys. I am new to share market. Is it always better to deduct other income when we calculate EPS. Because some companies may get revenue from other income regularly.

6KOTA - An analysis Empty Re: KOTA - An analysis Sat Mar 19, 2011 9:40 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
A company can even make money by share trading, and the income of those can also be categorical as other income.. In turbulent times, when the core business is not in demand, companies have to survive too.. so this can be defined as one strategy of survival..
Also companies diversify their business, go into unknown areas and make money out of it.. it that business is fruitful they can even allocate more money to it..

As an investor, I'm very much keen on the success of a company's core business, if its a diversified company, its key areas and companies it holds.. So to me, this other income can be vary depend on many factors, this qtr it may be high, next qtr it may be low.. Since its not related to core business activities and undependable nature I tend to remove it..

"Minority interest refers to the portion of a subsidiary corporation's stock that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is always less than 50% of outstanding shares, else the corporation would cease to be a subsidiary of the parent." - source - WIKI

Also if there's minority interest, we have to remove it while analyzing companies.
Minority interest represents the equity interest of outside shareholders in consolidated subsidiaries. We can see this on the income statement, where minority interest in the income of a consolidated subsidiary and is shown as a deduction of consolidated net income.

When we deduct all these from the profits, we get the picture of true financial strength of the companies. We have to look for companies where we can identify qtr-qtr revenue growth.. Then we know the business is thriving Wink

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum