Does every one recommend FLCH because of diversified holding?

Jana1

Jana1

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I am not much impressive with FLCH because it can be categorized as plantation company because the income from power sector is too low (less than 8%)compared with total income from plantation. Then its PE around 10 and price is in asset value. There are so many plantation price with its asset value, TPL, Mal,Bala. So investors normally response for earning not asset value in plantation sector. See madulsima plantation asset value nearly 55-60 but mkt price 23. Mal is highly undervalued share in plantation compared with FLCH. But both have higer issued qty.
NB: To get benefit from the money gained through IPO will take at least 9-12 months.
Am I right? Corrct me if I am wrong. I am not demotivating you guys.... Smile

early

early

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Almost 75% of FLCH profits have come from the Rubber sector. This is evident when you look at the segment results of the group as at 31/03/11. As rubber is comanding very good prices FLCH should continue to post very good profit figures in the future in my view.

kannantcs

kannantcs

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Guys please note that MAL is going for a rights issue...
Voting: 49,518,032 (@6.75)
Non Voting: 49,518,032 (@5.50)

After the rights issue will the price go down Question

Please share your comments..

early

early

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Company will raise over Rs.600Mn from the rights issue. This is interest free capital and the company proposes to enter into the leisure sector with these funds. This company is allready very profitable and the successful conclusion of the rights issue will very much increase the future growth potential. I dont think the price would go down further. In fact, in my view, in the medium term (6M - 1yr), the share price of MAL should increase much more.

Jana1

Jana1

Assistant Vice President - Equity Analytics

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early wrote:Almost 75% of FLCH profits have come from the Rubber sector. This is evident when you look at the segment results of the group as at 31/03/11. As rubber is comanding very good prices FLCH should continue to post very good profit figures in the future in my view.

As per my knowledge KGAL is the one generate at least 90% of net profit from rubber With EPS of 34. price is 195. PE is 5.7. Then very less chance to FLCH to rocket around 7-8 rupees with 1.5 bn issued qty whilst KGAL have less PE with 25 mn issued qty.

sramiz

sramiz

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Dear friends, just went through the trend line of FLCH, the lowest price that the share attained is 4.50/- the date 16.06.2011, given the situation in CSE all shares are seeing a downward trend even the attractive one's. so before making the final call of buying any shares please do more studies,

The funny thing with CSE is that, during the 2nd half of 2010. we were able to make money simply by investing on any shares listed, the hard thing on decision making was [not deciding to buy.

Things have since changed.. now the hard thing is to decide whether to buy or not.

Please make you decision wisely. this forum is a knowledge base. use is carefully..

Regards.

traderJack

traderJack

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Jana1 wrote:

early wrote:Almost 75% of FLCH profits have come from the Rubber sector. This is evident when you look at the segment results of the group as at 31/03/11. As rubber is comanding very good prices FLCH should continue to post very good profit figures in the future in my view.

As per my knowledge KGAL is the one generate at least 90% of net profit from rubber With EPS of 34. price is 195. PE is 5.7. Then very less chance to FLCH to rocket around 7-8 rupees with 1.5 bn issued qty whilst KGAL have less PE with 25 mn issued qty.

completely agree. Most PLT Companies are tea heavy which is why they will be hit pretty hard by the wage hike. But as you say, kgal looks like the best plt pick , in the current market, also considering their qoq and yoy growth which is massive.

stumpy

stumpy

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let's hope for the best

Chinwi

Chinwi

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Although FLCH is more or less a plantation company their future plan is attractive to me.

If I choose FLCH it is not because of current position but for future growth.

I took high risks in investing in the past and gained accordingly , wanted to move into low risk shares and other instruments.

Hence, in my searching of good businesses to invest, I found FLCH .
Their current financial position, share price, on going projects and future plans in power and leisure sectors, rubber factor are the key attractions.
High % of shares in public is a -ve factor, at the moment.

Hence, I think it is more suitable for the investors who wanted to have a strong share in their portfolio at least after 2-3 years from now.

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Does every one recommend FLCH because of diversified holding?

1 Does every one recommend FLCH because of diversified holding? Sat Jun 18, 2011 9:53 am

Jana1

2 Re: Does every one recommend FLCH because of diversified holding? Sat Jun 18, 2011 10:27 am

early

3 Re: Does every one recommend FLCH because of diversified holding? Sat Jun 18, 2011 10:34 am

kannantcs

4 Re: Does every one recommend FLCH because of diversified holding? Sat Jun 18, 2011 10:50 am

early

5 Re: Does every one recommend FLCH because of diversified holding? Sat Jun 18, 2011 11:41 am

Jana1

6 Re: Does every one recommend FLCH because of diversified holding? Sat Jun 18, 2011 12:18 pm

sramiz

7 Re: Does every one recommend FLCH because of diversified holding? Sat Jun 18, 2011 2:13 pm

traderJack

8 Re: Does every one recommend FLCH because of diversified holding? Sat Jun 18, 2011 10:30 pm

stumpy

9 Re: Does every one recommend FLCH because of diversified holding? Sat Jun 18, 2011 11:51 pm

Chinwi

10 Re: Does every one recommend FLCH because of diversified holding?

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