@Rajitha wrote:Just fYI if we take PE of around 30 it can be trading around Rs1000 and PE of 50 means like 1750.
Question is how can you justify buying a share of PE of 15 on poultry sector ( there are sectors that you can invest with less than half this PE)? This is considering the future problems as we clearly saw from foreign imports and bird flue to name a few( If you need more fish price going down comes under the same topic and government setting the max price of chicken low for the election times).
In my opinion only sector has very low PER is plantation sector.. it has reasons for that..
plantation is always vulnerable to weather,labor,world price etc. in poultry sector only concern is bird flu.. they have a monopoly as many lankans do eat chicken but not start poultry farms due to religious/ethical issues..
chicken imports does not work in Sri Lanka. many consumers fear of Indian chicken products.
government short term measures(price setting/selling by armed forces) does not work either.
Moreover , demand for chicken is increased day by day due to tourist inflow.
so poultry sector PER of 15 is justifiable unless some thing bad happens to chicks(bird flu).