RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)

geesura wrote:

shakthi1974 wrote:As per my findings import restrictions applies to under HS code 2501.00.00 Salt (including table salt and denatured salt) and pure sodium chloride, whether or not in aqueous solution or containing added anti-caking or free-flowing agents; sea water.

Good luck everyone this counter has long journey ahead for sure! Remember nothing taste good without a pinch of SALT!!

ONTHEMONEY wrote:Hi all,


The following is an extract from the article published in srilankamirror.com. 


"Salt imports to Sri Lanka in 2018 stood at Rs. 183,700,000 and Rs. 190,500,000 in 2019. From Jan. 2020 - May 2020, the figure stood at Rs. 80,000,000"


Source :https://srilankamirror.com/biz/18672-salt-import-ban-ravi-to-reap-biggest-benefit 


Hence, if we consider the entire imported salt is produced by RWSL, the following profits and EPS can be justified.


1Q20 Revenue = Rs 158.1Mn 
2019/20 Full year revenue = Rs 756.9 
Add-Imported Salt produced by RWSL = Rs 190.0 
Total Revenue for FY 2020/21= Rs 946.9Mn [Rs 756.9+Rs 190.0]
NP Margin for FY 2020/21 = 14.18% [based o n FY2020]
Estimated Net Profit for 2020/21= Rs 134.2Mn
Estimated EPS for FY 2020/21 = Rs 0.47 per share [134.2/282Mn shares]


Estimated share price for 2020/21 FY = Rs 4.70 [0.47 @ 10PE multiples]


Therefore, even if RWSL capture the 100% import volumes of Sri Lanka and such revenue adjusted to the earnings of RWSL, the share valued valued @ Rs 4.70.


The business model of RWSL is highly dependent on the scale of production capacity in which RWSL must have strong asset base to generate increased revenue. In this perspective, RWSL has a NAV of Rs 4.66 as of 1Q20 and RWSL valued at Rs 6.99 per share if we determine the share value based NAV [1Q20 NAV @ 1.5x]. 


Therefore, I view current market price of RWSL @ Rs 7.40~7.50 seems like bit overpriced. But RWSL has the scope to move further up purely based on HNWI speculation which could be observed as little dangerous since RWSL earnings does not support if its being pushed further up.


Good Luck

ONTHEMONEY wrote:Hi all,


The following is an extract from the article published in srilankamirror.com. 


"Salt imports to Sri Lanka in 2018 stood at Rs. 183,700,000 and Rs. 190,500,000 in 2019. From Jan. 2020 - May 2020, the figure stood at Rs. 80,000,000"


Source :https://srilankamirror.com/biz/18672-salt-import-ban-ravi-to-reap-biggest-benefit 


Hence, if we consider the entire imported salt is produced by RWSL, the following profits and EPS can be justified.


1Q20 Revenue = Rs 158.1Mn 
2019/20 Full year revenue = Rs 756.9 
Add-Imported Salt produced by RWSL = Rs 190.0 
Total Revenue for FY 2020/21= Rs 946.9Mn [Rs 756.9+Rs 190.0]
NP Margin for FY 2020/21 = 14.18% [based o n FY2020]
Estimated Net Profit for 2020/21= Rs 134.2Mn
Estimated EPS for FY 2020/21 = Rs 0.47 per share [134.2/282Mn shares]


Estimated share price for 2020/21 FY = Rs 4.70 [0.47 @ 10PE multiples]


Therefore, even if RWSL capture the 100% import volumes of Sri Lanka and such revenue adjusted to the earnings of RWSL, the share valued valued @ Rs 4.70.


The business model of RWSL is highly dependent on the scale of production capacity in which RWSL must have strong asset base to generate increased revenue. In this perspective, RWSL has a NAV of Rs 4.66 as of 1Q20 and RWSL valued at Rs 6.99 per share if we determine the share value based NAV [1Q20 NAV @ 1.5x]. 


Therefore, I view current market price of RWSL @ Rs 7.40~7.50 seems like bit overpriced. But RWSL has the scope to move further up purely based on HNWI speculation which could be observed as little dangerous since RWSL earnings does not support if its being pushed further up.


Good Luck

Win Win wrote:

ONTHEMONEY wrote:Hi all,


The following is an extract from the article published in srilankamirror.com. 


"Salt imports to Sri Lanka in 2018 stood at Rs. 183,700,000 and Rs. 190,500,000 in 2019. From Jan. 2020 - May 2020, the figure stood at Rs. 80,000,000"


Source :https://srilankamirror.com/biz/18672-salt-import-ban-ravi-to-reap-biggest-benefit 


Hence, if we consider the entire imported salt is produced by RWSL, the following profits and EPS can be justified.


1Q20 Revenue = Rs 158.1Mn 
2019/20 Full year revenue = Rs 756.9 
Add-Imported Salt produced by RWSL = Rs 190.0 
Total Revenue for FY 2020/21= Rs 946.9Mn [Rs 756.9+Rs 190.0]
NP Margin for FY 2020/21 = 14.18% [based o n FY2020]
Estimated Net Profit for 2020/21= Rs 134.2Mn
Estimated EPS for FY 2020/21 = Rs 0.47 per share [134.2/282Mn shares]


Estimated share price for 2020/21 FY = Rs 4.70 [0.47 @ 10PE multiples]


Therefore, even if RWSL capture the 100% import volumes of Sri Lanka and such revenue adjusted to the earnings of RWSL, the share valued valued @ Rs 4.70.


The business model of RWSL is highly dependent on the scale of production capacity in which RWSL must have strong asset base to generate increased revenue. In this perspective, RWSL has a NAV of Rs 4.66 as of 1Q20 and RWSL valued at Rs 6.99 per share if we determine the share value based NAV [1Q20 NAV @ 1.5x]. 


Therefore, I view current market price of RWSL @ Rs 7.40~7.50 seems like bit overpriced. But RWSL has the scope to move further up purely based on HNWI speculation which could be observed as little dangerous since RWSL earnings does not support if its being pushed further up.


Good Luck

Superb analysis. Thanks on the money. The forum will be valued by this type of posts and increase good knowledge of others.

I also think RWSL should not touch, the price will be down to its real value (Rs.5-Rs.5.50) with Q2.

ONTHEMONEY wrote:Hi all,


The following is an extract from the article published in srilankamirror.com. 


"Salt imports to Sri Lanka in 2018 stood at Rs. 183,700,000 and Rs. 190,500,000 in 2019. From Jan. 2020 - May 2020, the figure stood at Rs. 80,000,000"


Source :https://srilankamirror.com/biz/18672-salt-import-ban-ravi-to-reap-biggest-benefit 


Hence, if we consider the entire imported salt is produced by RWSL, the following profits and EPS can be justified.


1Q20 Revenue = Rs 158.1Mn 
2019/20 Full year revenue = Rs 756.9 
Add-Imported Salt produced by RWSL = Rs 190.0 
Total Revenue for FY 2020/21= Rs 946.9Mn [Rs 756.9+Rs 190.0]
NP Margin for FY 2020/21 = 14.18% [based o n FY2020]
Estimated Net Profit for 2020/21= Rs 134.2Mn
Estimated EPS for FY 2020/21 = Rs 0.47 per share [134.2/282Mn shares]


Estimated share price for 2020/21 FY = Rs 4.70 [0.47 @ 10PE multiples]


Therefore, even if RWSL capture the 100% import volumes of Sri Lanka and such revenue adjusted to the earnings of RWSL, the share valued valued @ Rs 4.70.


The business model of RWSL is highly dependent on the scale of production capacity in which RWSL must have strong asset base to generate increased revenue. In this perspective, RWSL has a NAV of Rs 4.66 as of 1Q20 and RWSL valued at Rs 6.99 per share if we determine the share value based NAV [1Q20 NAV @ 1.5x]. 


Therefore, I view current market price of RWSL @ Rs 7.40~7.50 seems like bit overpriced. But RWSL has the scope to move further up purely based on HNWI speculation which could be observed as little dangerous since RWSL earnings does not support if its being pushed further up.


Good Luck

heroxhere wrote:

ONTHEMONEY wrote:Hi all,


The following is an extract from the article published in srilankamirror.com. 


"Salt imports to Sri Lanka in 2018 stood at Rs. 183,700,000 and Rs. 190,500,000 in 2019. From Jan. 2020 - May 2020, the figure stood at Rs. 80,000,000"


Source :https://srilankamirror.com/biz/18672-salt-import-ban-ravi-to-reap-biggest-benefit 


Hence, if we consider the entire imported salt is produced by RWSL, the following profits and EPS can be justified.


1Q20 Revenue = Rs 158.1Mn 
2019/20 Full year revenue = Rs 756.9 
Add-Imported Salt produced by RWSL = Rs 190.0 
Total Revenue for FY 2020/21= Rs 946.9Mn [Rs 756.9+Rs 190.0]
NP Margin for FY 2020/21 = 14.18% [based o n FY2020]
Estimated Net Profit for 2020/21= Rs 134.2Mn
Estimated EPS for FY 2020/21 = Rs 0.47 per share [134.2/282Mn shares]


Estimated share price for 2020/21 FY = Rs 4.70 [0.47 @ 10PE multiples]


Therefore, even if RWSL capture the 100% import volumes of Sri Lanka and such revenue adjusted to the earnings of RWSL, the share valued valued @ Rs 4.70.


The business model of RWSL is highly dependent on the scale of production capacity in which RWSL must have strong asset base to generate increased revenue. In this perspective, RWSL has a NAV of Rs 4.66 as of 1Q20 and RWSL valued at Rs 6.99 per share if we determine the share value based NAV [1Q20 NAV @ 1.5x]. 


Therefore, I view current market price of RWSL @ Rs 7.40~7.50 seems like bit overpriced. But RWSL has the scope to move further up purely based on HNWI speculation which could be observed as little dangerous since RWSL earnings does not support if its being pushed further up.


Good Luck

Great Observation. However, a significant volume has been purchased at 7+ on Friday. Interesting watch, might run.

subash81 wrote:Better to sell.

subash81 wrote:Better to sell

:rocket:

kanishkaecomm wrote:12+ Sureeeee!!!

dilshangac wrote:

kanishkaecomm wrote:12+ Sureeeee!!!

It's too risky to enter above 7/-. Be careful

EGG wrote:Hi All,
Can this cross Rs 11/- levels tomorrow? Any views pls.
Thanks