Can we see RHL movements alone with RAL?

RHL is a good share but not moving. Can we expect it will go up with RAL?

Carolis wrote:RHL is a good share but not moving. Can we expect it will go up with RAL?

People are yet to identify the potential of RHL. They are growing stronger with new projects ( Automotive, Property, Marketing etc) . Very soon they will give out a dividend too. With the aquisition of Shaw Wallace Marketing , their revenue growth dramatically improved. So now is matter of stabilizing and turning it to more profit. I think there will be more news in the future with RHL. I only just hope they do not do anything foolish like badly timed or directed right issue to kill the market. But looking at past history , they have been wise even in such cases. This quarter their profit would have been more except for the negative impact of the Market value of their portfolio. Else things look good.

ps : The only small issue was some large director sellings recently at these low prices. Why did they sell low. Maybe they have good purpose.

Renuka Holdings PLC was one of the four Sri Lankan companies selected by Forbes Asia for the great honour of being the “Best under a US$ Billion”. Forbes Asia’s “Best under a Billion” companies are Asia Pacific’s top, small and mid-size listed companies. According to Forbes, the criteria of selection included profitability, growth, modest indebtedness and future prospects. Forbes editors picked 200 companies out of a universe of over 15,000 Asia Pacific companies with actively traded shares and sales between US$5 million and US$1 billion.

As per the Annual Report for 2010/2011 of Renuka Holdings PLC, released to the Colombo Stock Exchange recently, it is a diversified holding company with subsidiaries engaged in four core sectors.

The Agri business sector consists of Renuka Agri Foods PLC and subsidiaries which are in plantations, manufacturing, global marketing and forestry. It was listed on the Colombo Stock Exchange under the Food and Beverage sector through a highly successful IPO in November 2009.

The Automotive sector is headed by McShaw Automotive Ltd, a joint venture between Shaw Wallace Ceylon Ltd. (a subsidiary of Renuka Holdings PLC) and McLarens Holdings Ltd. The company is the market leader in the brake oil category with Delphi Lockheed brand and also a significant player in the tubes, 2 wheeler and 3 wheeler tyre segments with its brands Grip, Dunlop and Pioneer, among a range of other automotive products.

Shaw Wallace Ceylon Ltd. represents the FMCG and Food Service sector of the group having one of the most established and most extensive distribution networks in the country. Many of its own brands such as Captain and Plaza canned fish, Sun Gold instant drinks, Rainers colorings and essences, Ranposha breakfast cereal, Milk White laundry soap, Ranwan Venivel herbal soap and agencies such as Ajinomoto flavour enhancer, Supermax shaving products are household names in Sri Lanka.

The Investment and Property Development division is represented by Coco Lanka PLC and its associates, which is also listed on the Colombo Stock Exchange.

The year under review was a milestone year for the Group as its Profit after Tax (PAT) surpassed Rupees half billion, for the first time. The Group performed remarkably with revenue of Rs. 2.7 billion, which is a 62% growth over the Rs. 1.7 billion recorded in the previous year. Profits attributable to the equity holders of Renuka Holdings PLC increased by 157% to reach Rs. 618 million, while total consolidated net profit was Rs. 829 million. The total equity of the group grew from Rs. 2.3 billion to Rs. 3.4 billion at the end of financial year.

Chairperson I. R. Rajiyah in her annual review stated, “The group has a number of projects in the pipeline. Among them are the Coconut Water Project of Renuka Agri Foods PLC, setting up Renuka Products Ltd. a dedicated FMCG manufacturing facility for Shaw Wallace Ceylon Ltd. and a foray into Property Development using the group’s existing land bank. With so many concurrent developments we are on an aggressive expansion drive to use our expertise, unlock our assets and craft value for all our stakeholders”.

Commenting on the accolade from Forbes, J. Perera, Business Development Manager said, “We are most honoured by this international recognition and that too from a prestigious publication like Forbes. This recognition of Renuka Holdings PLC is a reflection of the hard work, commitment and loyalty of our family of 952 employees, who are the foundation of our organisation”.

dailymirror.lk

slstock wrote:

Carolis wrote:RHL is a good share but not moving. Can we expect it will go up with RAL?

People are yet to identify the potential of RHL. They are growing stronger with new projects ( Automotive, Property, Marketing etc) . Very soon they will give out a dividend too. With the aquisition of Shaw Wallace Marketing , their revenue growth dramatically improved. So now is matter of stabilizing and turning it to more profit. I think there will be more news in the future with RHL. I only just hope they do not do anything foolish like badly timed or directed right issue to kill the market. But looking at past history , they have been wise even in such cases. This quarter their profit would have been more except for the negative impact of the Market value of their portfolio. Else things look good.

ps : The only small issue was some large director sellings recently at these low prices. Why did they sell low. Maybe they have good purpose.

Yes you are absolutely correct with RHL. Still people have not identified the potential with this company.
But it is better to keep quite as many of these mini retailers are like to go after junk foods.
Before even pass the 1st Rs 1 million barrier many of these retailers want to become the next Nimal Perera.

@ slstock - thanks for the info, +rep

I had very huge hope with RHL. Bought higher qty too. My only worries is why directors are selling? I closely notice that company I heard there is no internal problem in between mgmt. Then y these guys are getting exit at lower price? Have to wait and see...

Jana1 wrote:I had very huge hope with RHL. Bought higher qty too. My only worries is why directors are selling? I closely notice that company I heard there is no internal problem in between mgmt. Then y these guys are getting exit at lower price? Have to wait and see...

Yes Jana. There must be a good reason for that. But that is the only downside of this company.

Jana1 wrote:I had very huge hope with RHL. Bought higher qty too. My only worries is why directors are selling? I closely notice that company I heard there is no internal problem in between mgmt. Then y these guys are getting exit at lower price? Have to wait and see...

Jana,

Thats why in my post I said

"ps : The only small issue was some large director sellings recently at these low prices. Why did they sell low. Maybe they have good purpose."

slstock wrote:

Carolis wrote:RHL is a good share but not moving. Can we expect it will go up with RAL?

People are yet to identify the potential of RHL. They are growing stronger with new projects ( Automotive, Property, Marketing etc) . Very soon they will give out a dividend too. With the aquisition of Shaw Wallace Marketing , their revenue growth dramatically improved. So now is matter of stabilizing and turning it to more profit. I think there will be more news in the future with RHL. I only just hope they do not do anything foolish like badly timed or directed right issue to kill the market. But looking at past history , they have been wise even in such cases. This quarter their profit would have been more except for the negative impact of the Market value of their portfolio. Else things look good.

ps : The only small issue was some large director sellings recently at these low prices. Why did they sell low. Maybe they have good purpose.

Here comes dividend I talked about before. I believe there might be final dividend too in addition to the above.


RENUKA HOLDINGS PLC
Company ID: - RHL
Date of Announcement: - 09.Sep.2011
Proportion: - 1.75438 shares (rounded, 100/57) for every 100 shares (Not liable for WHT)
Financial Year: - 2010/2011
AGM: - 27.Sep.2011
XD: - 28.Sep.2011
Qty Offered: - 767,544


RENUKA HOLDINGS PLC
Company ID: - RHL (Non-Voting)
Date of Announcement: - 09.Sep.2011
Proportion: - 2.85714 shares (rounded, 100/35) for every 100 Non-Voting shares (Not liable for WHT)
Financial Year: - 2010/2011
AGM: - 27.Sep.2011
XD: - 28.Sep.2011
Qty Offered: - 178, 571

slstock wrote:

Jana1 wrote:I had very huge hope with RHL. Bought higher qty too. My only worries is why directors are selling? I closely notice that company I heard there is no internal problem in between mgmt. Then y these guys are getting exit at lower price? Have to wait and see...

Jana,

Thats why in my post I said

"ps : The only small issue was some large director sellings recently at these low prices. Why did they sell low. Maybe they have good purpose."

Ya I noticed that in ur post. I also hope so...let c

Here is the second dividend I talked about. Now there is a script dividend ( fully paid shares) and a Regular Dividend.

RENUKA HOLDINGS PLC
Company ID: - RHL
Date of Announcement:-12.Sep.2011
Rate of Dividend: - Rs.0.50 per share / Final Dividend
Financial Year: - 2010/2011
Shareholder Approval: - Required
AGM: - 27.Sep.2011
XD: - 28.Sep.2011
Payment: - 30.Sep.2011
Share Transfer Book Open

One directors showing interest to buy.

http://www.cse.lk/cmt/upload_cse_announcements/9691315803430_.pdf

slstock wrote:
One directors showing interest to buy.

http://www.cse.lk/cmt/upload_cse_announcements/9691315803430_.pdf

He should have bought another 500 X shares, then Mr L. A Abeywickrama would be eligible to get 300 non-voting shares as scrip dividend. According to this announcements he bought 10,000 shares and prior to this purchase he did not have any share.
Sricp dividend is the not best way of paying dividend. It so hard to make these into the (normal shares) nearest 100.

UKboy wrote:

slstock wrote:
One directors showing interest to buy.

http://www.cse.lk/cmt/upload_cse_announcements/9691315803430_.pdf

He should have bought another 500 X shares, then Mr L. A Abeywickrama would be eligible to get 300 non-voting shares as scrip dividend. According to this announcements he bought 10,000 shares and prior to this purchase he did not have any share.
Sricp dividend is the not best way of paying dividend. It so hard to make these into the (normal shares) nearest 100.

Agreed about ODD shares. Maybe they want improve the number of shares in the market ( by 2% not much I admit). They already had a split some time ago. Still there are only about 51 Million shares in the market after the Script. Before only 50 Million. Moderate liquidity with a share at mid range price for the small/medium investor.