For the company like TWOD, just getting figure from income statement may not make any sense as its profit accounted provisions. So the real generated profit reported here is worked out from retained earnings for the period and the cash flow.
The retained loss of the company is up for each and every quarter.
Loss per share last year was (1.73) ....(after 1:2 capitalization of reserve)
If we eliminate all the unrealized biological gain which perhaps erode with court rules which is to be due on 30th may/2013,
The NAVPS should be nearly Rs-11.
Actual cash in hand is 123 mn which is almost its six month cash out flow. So within 3-9 months TWOD badly need money to be in the business.
To raise money they need to issue right issue probably 1:1 as they raised last two times in the same ratio.
With more liquidity (213.8 mn shares after rights), it will be trading less than the right price if there is no uptrend of the market during 2013.
With elimination of provisions and after rights, TWOD could be valued bit lesser than Malwatta plantation. But Mal is much better than TWOD with nearly same no of shares..
Any expert your views??