KELANI VALLEY PLANTATIONS PLC (KVAL.N0000)

may go down further due to bad sector performence

KVAL Financials for the 9 months reports an EPS 8.05.
I think this is wrong,

Hawk Eye wrote:KVAL Financials for the 9 months reports an EPS 8.05.

I think this is wrong,

Why do you "think" that it's wrong?

Nine month earnings are 273 million (77m-50m+246m)
Number of shares 34 million
273/34= 8.05 calculation is correct.

Well its correct as per my calc too...

Equity holders of the Company (Qtr ended 30.09.201) = 77,834,000
Equity holders of the Company (3Q ended 30.09.201) = 273,684,000

No of shares (Approx) = 33,998,528

EPS for the Qtr = 2.28
EPS fot the 9 months = 8.049 (rounded 8,05)

I think I made a mistake,appologies for posting without checking

Thanks

expect same from KOTA & KGAL

Net profit increased by 122% compare to last 2011 3rd quarter. 9month net profit increased by 40%. Major reason for huge profit increase reduction in cost of sales by 152Mn. (net profit is 173Mn). Same kind of thing happened in BOPL. May be we can expect same reduction in cost of sales from other counters also. However need to find out reason for it. Good for plantation untill 2013 march next salary increment.

Last 9 month rubber made a 37% gross profit margin and tea is only made 11% margin. However tea contribute around 76% to the revenue. This shows high profitabilty in Sri Lanka rubber sector.

Rubber revenue has declined by 300Mn for nine month. Otherwise profit hasbeen increased much more than this.

Party Ending??

Dip in tea prices a worry; crop shortfall narrows
Recent auctions in Colombo have witnessed a significant downward trend in prices for Low Growns, causing a fresh round of concerns for the tea industry.
According to John Keells Ltd., averages have been plummeting steadily from Rs. 452 at sale No. 38 of 25/26 September 2012 to Rs. 407.31 at the recently-concluded sale No. 41 of 16/17 October 2012, which reflects a drop of Rs. 45 in four sales.
“High priced Tippy teas which feed the Iranian market have come under severe strain with prices dropping significantly in comparison to the Leafy teas,” the produce broker said.
It is reported that the European Union Government which had met in Brussels on 15 October 2012 had decided to enforce further financial and trade sanctions on Iran with the exception for humanitarian trade. In addition to the extensive trade and financial sanctions already in place the new sanctions will add more pressure on the Iranian economy.
John Keells said tea imports to Iran are expected to continue at least during the current winter months, but with the local currency recording a sharp fall in value, customers will be compelled to pay higher prices as importers will find it difficult to acquire letters of credit and transfer of funds.
“The situation in Syria remains much the same as reported earlier, which is another area of concern, particularly for the Low Grown Leafy teas, which have also not fared too well. Given the present scenario, the immediate prospect for a quick turnaround does not look promising, particularly in view of the fact that present winter buying for Russia, which props up the market at the this time of the year, will cease in a few weeks time,” John Keells said. “This could further weaken demand for Low Grown teas,” it added.
In a more positive development, the tea crop in September saw an increase to 26.82 million kilos, from 24 million kilos in the corresponding month of last year. This reduced the year-to-date deficit in the crop to 1.3% to 241.7 million kilos as at September from a deficit of 3% as of end August. In the first nine months of last year the crop was 245.1 million kilos. It is the second consecutive increase year on year following August.
Low Grown saw the biggest increase in crop in September, up from 15.6 million kilos in September last year to 17.9 million kilos this year. This saw cumulative Low Grown crop at 149.4 million overtake more convincingly the last year’s first nine month total of 147.3 million kilos.
High and Medium Growns saw modest increases as well. CTC production too improved.
In the meantime Ex-Estate teas over the past few sales have held their own, maintaining steady price levels. BOPs have met with better demand over BOPF due mainly to the small quantities on offer, the broker said.
Last week Ex-Estate teas auction met with good demand. The Best Western High Grown BOPs were irregularly lower at the commencement of the sale, however appreciated as the sale progressed, whilst the others too were firm to dearer.
BOPFs too, which was initially Rs. 5 to Rs. 10 dearer, gained further as the sale progressed. Nuwara Eliya BOPs declined sharply by Rs. 40 to Rs. 50 with a number of invoices remaining unsold. BOPFs were firm to dearer. Uva BOPs were firm to a little easier, whilst BOPFs appreciated Rs. 15 to Rs. 20 and more at times. Low Grown CTC PF1s were mostly firm, whilst High and Medium types were firm to easier. Best Low Grown BP1s maintained; others tended lower.

http://www.ft.lk/2012/10/30/dip-in-tea-prices-a-worry-crop-shortfall-narrows/

Seems price stuck at Rs.70/-.  Any idea about this share for a worth trading with current boost in plantation sector;
Expertise Pls advice...

Still 70 not moving after good result 

Kelani Valley Plantations PLC is a diversified agribusiness company with interests in production, processing, marketing, plantation crops and hydropower generation. The principal activities of the Company are the production and processing of tea and rubber. The Company's segments are Tea, Rubber and Others. The Company's core business interests are in tea and rubber, with a portfolio of approximately 30 estates covering over 13,000 hectares of both tea and rubber plantations, which are cultivated on lands that are leased from the Government of Sri Lanka. It produces traditional Ceylon Tea at approximately 10 tea processing centers. In latex rubber business, it manufactures sole crepe, centrifuge latex and crepe rubber, which are used mainly as raw materials in the manufacture of rubber gloves, and in pharmaceutical and shoe industries. The Company produces sole crepe in Sri Lanka with manufacturing operations being carried out at rubber factories situated in Yatiyantota and Dehiowita.


Any target price KVAL !!

huge potential did not move muck maybe 100

KVAL Target price is Rs 95.00

Tomorrow highest gainer . 100+ possible . Due to 3 reasons.

KVAL and ELPL fundamentals are good compared to the other crappy plantation shares rallied today. My two cents...

Short term target is 120 with Q2 result....

kanishkaecomm wrote:

Why don't you tell us those reasons?

https://youtu.be/Oi8wONXeiH8

Thanks Teller

plantation rally end soon..

except few plantation..

KVAL financially is not sound. See the past history and some of the year suffer with losses and marginally profit making. Rally cameup KVAL,sandlly, it will droped. Big holder will exit.

@Sl-Investor, you are baseless,
KVAL mother company is Dipd , check who owns DipD. kval production partly utilized by DipD , KVAL IS no 1 rubber producer. They have tea , coconut ,cinnamon , 1 MW hydro, kval resort too. Asset base is huge . 32,000 acres they own .
Coming quarters are really good for them

Teller wrote:@Sl-Investor, you are baseless,
KVAL mother company is Dipd , check who owns DipD. kval production partly utilized by DipD , KVAL IS no 1 rubber producer. They have tea , coconut ,cinnamon , 1 MW hydro, kval resort too. Asset base is huge . 32,000 acres they own .
Coming quarters are really good for them

@Teller , I also see the real value of KVAL, Its the only plantation share didn't climb to its intrinsic value, It Hoover around 66 to 75 last 3 months, It should go up at least 30% only if we compared what other plantations archived. Also as its owned b Hayleys. Also crop they produce is very good for this period. Rubber now in high demand, Tea in high demand nd prices will increase further (There should be bit less production even though) , Also they hv coconut . So overall 100+ is great possibility

Teller wrote:@Sl-Investor, you are baseless,
KVAL mother company is Dipd , check who owns DipD. kval production partly utilized by DipD , KVAL IS no 1 rubber producer. They have tea , coconut ,cinnamon , 1 MW hydro, kval resort too. Asset base is huge . 32,000 acres they own .
Coming quarters are really good for them

Though I am not agreeing with most of your posts, this one makes sense. KVAL is a "potential buy" compared to most of the craps have been promoted these days.

@TELLER, In here, not important KVAL owner name, KVAL land size or product ranges. Earlier KVAL had same property, Same Owner, same product range.... Why couldnot perform earlier.???? Important one thing their past history how they performed. Another one potentially it is value or not.

Because of the tea and rubber price combination . Largest share holder will not dump this. The main reason is india factor . Kval and indian mcleod russel has a competition . But this time kval will win

Welcome SINIMA Investing "SL - INVESTOR"  ,History data is important, but if there are future potentials those will change your history...

@Teller, You said this time KVAL may win. Next time who will win? Anyway future, I'm not going to argue with you... In your youtube channel onething highlited, One of a guy asked, "DIPD value & asked DIPD is worth for that price??" You told there is no special reasons for DIPD higher price movement now. But here you highlighted  one of DIPD company subsidiary KVAL. KVAL potential earnings is not affect DIPD group financial performance. We are not blind. Thank you Teller   

Cma wrote:Welcome SINIMA Investing "SL - INVESTOR"  ,History data is important, but if there are future potentials those will change your history...

True, DIPD and HAYC didn't perform all that well during past years. They had few good quarters thats all. But the dynamics have changed and they have become Superstars

Why the owner is important here is that, DIPD capacity is fully utilised and they obviously prioritise their subsidiary KVAL for sourcing rubber.