BALA - Interim Report

Monster · 1 BALA - Interim Report Fri May 13, 2011 5:42 pm

Monster

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http://www.cse.lk/cmt/upload_report_file/705_1305278261695.pdf

EPS - Rs5.60
NAV - Rs63.75

Again major contribution is from Rubber.

Revenue 559,900 568,466 214,817
Operating Expenses (534,996) (524,246) (67,337)
Gross Profit 24,904 44,220 147,480

Rocky · 2 Re: BALA - Interim Report Fri May 13, 2011 7:48 pm

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Interesting results.

What will Uncle Harry do with the 1.2 Billion retained profits as at 31/3/2011?. Will he jack the prices up artificially by declaring something is in the pipe line?

Lets see the developments.

econ · 3 Re: BALA - Interim Report Fri May 13, 2011 7:51 pm

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very good results .. curent share price is below the net assets value per share.

nuwank · 4 Re: BALA - Interim Report Sat May 14, 2011 8:14 am

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BALA - EPS 5.65 is only for 3 months? Annualized would be much higher.

Great results.

smallville · 5 Re: BALA - Interim Report Sat May 14, 2011 9:09 am

smallville

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Higher contribution from Rubber mainly due to high cost in Tea.. with the wage hike in line this cost can increase further..
But results are really good and as econ pointed out, current share price is below the NAV means it looks really attractive..

However, we have to have a deep scan of their balance sheet to find whether the company really looks promising

marketsee · 6 Re: BALA - Interim Report Mon May 16, 2011 2:42 pm

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more than 15% up today

is · 7 Re: BALA - Interim Report Mon May 16, 2011 2:44 pm

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15% up is logical.....I hope it can move much more base on its Financials

Rocky · 8 Re: BALA - Interim Report Tue May 17, 2011 10:37 am

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BALA continues to make steady progress and the provisions for contingencies are good. Especially the provision of 522 million for retirement benefits is prudent and reduces their tax liability too.

Uncle Harry is not in a hurry to celebrate and declare any dividends just yet as the agitation in the Plantation Sector is brewing trouble and he may not want any bright off shoots in the estate to bi-sect his accounts. The retained profits will be made full use for his other pet projects and promulgate of his vested interests.

Now we cannot be too judicious on this account as there are others too who are equally guilty of this good practice. Gone are the days when the saying “One must borrow and make money” was the norm. (At that time IPO’s were not heard of)

Now every Dick, Tom, Harry and Jayawardena know how to make full use of the shareholders legitimate hard earned capital and make a company’s balance sheet beautiful.

I think that the current price of 66.50 odd is worth taking into consideration the consistent growth of the company over the last few quarters and the Net Assets price of 63.75.