Lots of speculation on Pelawatte 3Q results and its future has pushed share price.
Is real change in the outlook? My answer is very unlikely at least for next 2 years. Sugar is a primary commodity for which we do not have scale economies. Temporary supply shocks have prompted the prices which could stabilize with supply resurgence in India & Brazil. But, some support can be given in case if oil prices rise sharply.
About 3Q results, I don’t expect any improvements in profitability – rather they will continue to make losses.
Dairy & leisure business needs lots of time and capital. We need to see the development carefully before committing any money
I think its highly and unsustainably overvalued