TRUE VALUE OF LANKA ALUMINUM INDUSTRY (LALU)

Colombo Rider

Colombo Rider

Stock Trader

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Join date : 2021-02-27

It is beyond our thinking how LALU traded between Rs. 16/- to 17.50 after 5 to 1 split recently. Our intention is to educate specially retail sector to enable them to obtain a good return.

(1) A. Net profit for 9 months EPS - 7.41

B. If we presumed same performance for

current quarter EPS - 3.99

Total - 11.40

C. After the split 11.40/5 - 2.28

D. Company categorized under material

sector with a present PE of Rs. 19.20

If we take a moderate PE of 17

- Rs. 2.28 x 17

Price Justified - Rs. 38.76

The targeted price would be - Rs. 40

(2) NAV Prior to split is - Rs. 104.83/5

After split - Rs. 20.9

If we consider certain popular shares traded 5 times the

NAV price double the NAV - Rs. 41.80

This unfortunate situation above due to 2 reasons.

I. It started trading when the market was

bearish.

II. This was a test case prior to large splits

and Heyles Group and others should

have ensured good price and ultimately

affected others in the groups such as

Heycarb, Heyles, Diproduct, Fiber etc.

Good luck

Stock Wizard

Sat Feb 27, 2021 4:40 pm by **Jana** · Sat Feb 27, 2021 4:40 pm by **Jana**

Colombo Rider wrote:
It is beyond our thinking how LALU traded between Rs. 16/- to 17.50 after 5 to 1 split recently. Our intention is to educate specially retail sector to enable them to obtain a good return.

(1) A. Net profit for 9 months EPS -   7.41
B. If we presumed same performance for
current quarter      EPS     -   3.99
                           Total    - 11.40
C. After the split 11.40/5 -    2.28
D. Company categorized under material
  sector with a present PE of Rs. 19.20
If we take a moderate PE of 17
  - Rs. 2.28 x 17
Price Justified  - Rs.  38.76
The targeted price would be - Rs.   40

(2)       NAV Prior to split is   - Rs. 104.83/5
After split   - Rs.     20.9
If we consider certain popular shares traded 5 times the
NAV price double the NAV - Rs. 41.80

This unfortunate situation above due to 2 reasons.

I.      It started trading when the market was
bearish.
II. This was a test case prior to large splits
and Heyles Group and others should
have ensured good price and ultimately
affected others in the groups such as
Heycarb, Heyles, Diproduct, Fiber etc.

  Good luck
  Stock Wizard

Thanks, @ColomboRider ..

anyhow I am waiting to see anyone opposed to your statement.

I always mentioned this stock LALU. LALU should be trading at more than 30/= level .. unfortunately, it trading under 17/= ..

they are the losers who are selling at this price
they are the winners who are buying at this price

Game Changer and Colombo Rider like this post

Sat Feb 27, 2021 6:56 pm by Trading Jockey · Sat Feb 27, 2021 6:56 pm by Trading Jockey

Its soon gonna pick up.. the timing was bad.. but its matter of time. Its one of the under valued stocks in the market

Game Changer likes this post

Sun Feb 28, 2021 5:10 pm by **Jana** · Sun Feb 28, 2021 5:10 pm by **Jana**

Trading Jockey wrote:Its soon gonna pick up.. the timing was bad.. but its matter of time. Its one of the under valued stocks in the market

but seems like nobody noticed that.. still all are talking about highly heated shares?

judecroos and Game Changer like this post

Sun Feb 28, 2021 7:32 pm by Wolf86 · Sun Feb 28, 2021 7:32 pm by Wolf86

Don't worry just continue collecting.....

judecroos likes this post

Tue Mar 02, 2021 4:11 pm by Susil Mendis · Tue Mar 02, 2021 4:11 pm by Susil Mendis

Excellent Article

Thu Mar 04, 2021 10:03 am by Colombo Rider · Thu Mar 04, 2021 10:03 am by Colombo Rider

It is beyond our thinking how LALU traded between Rs. 16/- to 17.50 after 5 to 1 split recently. Our intention is to educate specially retail sector to enable them to obtain a good return.

(1) A. Net profit for 9 months EPS - 7.41

B. If we presumed same performance for

current quarter EPS - 3.99

Total - 11.40

C. After the split 11.40/5 - 2.28

D. Company categorized under material

sector with a present PE of Rs. 19.20

If we take a moderate PE of 17

- Rs. 2.28 x 17

Price Justified - Rs. 38.76

The targeted price would be - Rs. 40

(2) NAV Prior to split is - Rs. 104.83/5

After split - Rs. 20.9

If we consider certain popular shares traded 5 times the

NAV price double the NAV - Rs. 41.80

This unfortunate situation above due to 2 reasons.

I. It started trading when the market was

bearish.

II. This was a test case prior to large splits

and Heyles Group and others should

have ensured good price and ultimately

affected others in the groups such as

Heycarb, Heyles, Diproduct, Fiber etc.

Good luck

Stock Wizard

judecroos likes this post

Thu Mar 04, 2021 12:20 pm by **RJ1010** · Thu Mar 04, 2021 12:20 pm by **RJ1010**

Isn’t this the second time you post this? I see the same note posted by you on 27Feb....

Thu Mar 04, 2021 1:33 pm by stockie · Thu Mar 04, 2021 1:33 pm by stockie

LALU will never go to 40 levels you can pick LALU @ 10 in couple of weeks

agentnrox and Nandun like this post

Thu Mar 04, 2021 10:26 pm by lakmal · Thu Mar 04, 2021 10:26 pm by lakmal

stockie wrote:LALU will never go to 40 levels you can pick LALU @ 10 in couple of we

how you can say it will come to Rs 10.
what is the logic?
Pls Explain....

Thu Mar 04, 2021 10:33 pm by Wolf86 · Thu Mar 04, 2021 10:33 pm by Wolf86

Anything can happen.. Splits spoil the market.. I'm still on buying side.. Should trade 20+

Fri Mar 05, 2021 7:27 am by stockie · Fri Mar 05, 2021 7:27 am by stockie

lakmal wrote:

stockie wrote:LALU will never go to 40 levels you can pick LALU @ 10 in couple of we

how you can say it will come to Rs 10.
what is the logic?
Pls Explain....

Wait and see, you should be able to figure this if you check the past 3 months pattern

Fri Mar 05, 2021 9:48 am by Trading Jockey · Fri Mar 05, 2021 9:48 am by Trading Jockey

If some one is trying to convince fundamentally strong stock like Lalu then you figure out. also done check trends and charts for the moment. Hold on to the thought why you bought the stock, I think there is enough data to show the game of CSE these days.
Hold onn..

Fri Mar 05, 2021 9:56 am by lakmal · Fri Mar 05, 2021 9:56 am by lakmal

stockie wrote:

lakmal wrote:

stockie wrote:LALU will never go to 40 levels you can pick LALU @ 10 in couple of we

how you can say it will come to Rs 10.
what is the logic?
Pls Explain....

Wait and see, you should be able to figure this if you check the past 3 months pattern

I checked it last 3 months. It was lower value Rs 80. That mean =80/5 = Rs 16.
how it will be come to Rs 10.

Fri Mar 05, 2021 10:26 am by Trading Jockey · Fri Mar 05, 2021 10:26 am by Trading Jockey

If it goes beyond 10 you buy it at 10. Bcos the import ban and the amount of apartments thats coming up this will post supper / earnings and profit so the valuation will go up