Sunday, February 14, 2010


On 30 th January 2010 we released a report covering all plantation companies in Sri lanka & the value of investing in Plantations in Colombo Stock Exchange. [See report]This was given a wide publicity by several leading web sites [Sri lanka equity analytics / new etc.] world wide.

This is one of few reports published [To our knowledge] during the month of January 2010 highlighting the importance /hidden value  of investing in Plantation companies in Sri lanka.

After releasing this report from the very next day [01/02/2010]onwards Plantation index starts to climb up. However we still believe  that the Plantations have a very good future ahead &  most of plantation companies are still trading below to their true potential values.

As per this Table we can see that one company is leading the way [WATA] & next three companies [AGAL /BALA /KOTA] are well ahead to other counters & followed by another two counters [KGAL / MAL ] in terms of return [growth in share price]for the period 01/02/2010 to 12/02/2010

Investors / Friends
  • Will this trend continue in future as well?
  • Is there a true hidden value representing in these counters here?
  • Is WATA the most valued plantation company in CSE?
  • WATA - AGAL -BALA -KOTA-KGAL - MAL Is this the correct way to represent the value of Plantation companies?
  • Is this order representing the investor's demand?
  • Any thing new / from out side this table.
We are expecting a feed back from all the investment community who like to invest in plantations or already have plantation stakes.


Nipun said...

I believe losing of GSP+ concession, drew back the sudden growth of plantation sector, but growth will continue

Udana said...

You have not included Thalawakelle Plantaions in your universe.

srilanka stockpicks said...

This post we received through our email. For the benefit of all the visitors we decided to place the comments made by MOHOMED LAXANA here.

Dear Staff of Stock pick,

I think BALA should represent first place now. It should trade at least around above Rs.100/- by now. Now BALA is the most attractive plantations stocks in the CSE.

M.laxana further said

There are some reports about climate change in Kenya and it is going to affect for both tea and coffee. Further report says unfavorable weather has damaged crops. Tea prices will go up further. Companies having more tea will benefit most.

Rubber and palm oil will fluctuate.

Thanks and Regards

M SingaL.


Hi friends,

We expect Bala to perform very well in the long term. In Dec q they have to provide provisions for wage increase. There for we believe that bala in short term will not perform well. Sometime they will report a loss for end of Dec or will report a small profit for the same period.Due to this reason unlike other plantation companies sometimes they will not in a position to report a growth in profits for the last Q[3 months]

However AGAL may report improved profits for the same period due the increased prices fetched for tea +rubber + palm oil in world market.