Coco Lanka - The most under valued stock listed in Colombo Stock Exchange.

Coco Lanka PLC is a Sri Lanka-based investment company for agricultural ventures. Until December 31, 2008, the Company was engaged in the manufacturing and marketing of agricultural products and with effect from 1st January 2009 the principle activity is investment in agricultural ventures. Some of the Company's subsidiaries include Renuka Agrifoods Ltd., Renuka Teas (Cey) Ltd., Renuka Organics (Pvt) Ltd.and kandy Plantations Ltd.

The company also cultivates, manufactures, and exports organic products, such as canned fruits, fruit relishes, fruit beverages, spices, and virgin coconut oil.

In addition, it manufactures and exports Ceylon black, green, flavoured, and herbal tea in bulk, packets, tea bags, and specialty packaging. The company is based in Colombo, Sri Lanka. Coco Lanka PLC is a subsidiary of Renuka Agro Exports Limited.

Future Direction

The company’s principal activity was re classified as investment company for Agricultural ventures, hence the company is keen on acquisitions focusing mainly on the agriculture, food and beverage sectors. Even though COCO is functioning as an Investment Trust at present, according to the present classification of CSE  it comes under the sub sector Beverage Food and Tobacco.

 Subsidiaries of Coco Lanka

The Financial Statements of the Group represents the consolidation of the Financial Statements of the Company and of its subsidiaries listed below,

•  Renuka Agri Foods PLC
•  Renuka Organics (Pvt) Ltd

•  Renuka Teas (Ceylon) (Pvt) Ltd
•  Kandy Plantations Ltd

•  Renuka Witsenburg Organics(Pvt) Ltd
•  Campbell Teas (Pvt) Ltd

•  Renuka Trading (Pvt) Ltd
•  Ceylon Forestry (Pvt) Ltd

•  Ceylon Botanicals (Pvt) Ltd 

Why Coco Lanka?

• Coco Lanka Company is the most under valued company listed in Colombo Stock Exchange as at 03/09/2010.

• Coco EPS stands at Rs 15.92 as at 31.03.2010 & the NAV stands at Rs 40.42 per share as at 31.03.2010.

• P.E is 2.58 for voting share & its low as 1.98 for Non Voting counter as at 31.03.2010. Coco Lanka is having the lowest P.E. among listed companies in Colombo Stock Exchange.

• Last traded price of Coco was Rs 41.90 (V.W.A) as at 03.09.2010 & the trailing P.E is 2.63

• Coco Lanka share has under valued to the ASI & MPI over the past 18 months period.

• The company has Rs 500 m.n + cash with them being the proceeds from the recent rights issue. The aim of the company is to continue exploring acquisitions focusing mainly on the agriculture, food and beverage sectors.

• Coco Lanka owns 221m.n. shares of Renuka Agri Foods PLC & is the largest share holder of Renuka Agri Foods PLC & the present value of this investment stands at Rs 906 m.n.( 221m.n shares * Rs 4.10 - RAL Last traded price)

• Even if we take in to account the immediate two factors mentioned above, the Net Asset Value & the trading price of Coco Lanka should be well above the present reported figures.

• The profit figures were flat as at 30/06/2010 ( 1st three months) at Rs 46m.n as against Rs 43 m.n reported for the same period in year 2009 & the NAV has increased to Rs 42.04 per share as at 30/06/2010.

• Buy signal has appeared for the stock as at 03/09/2010

• Dividend of Rs 1.00 / share is still pending .

•  The company has 170,000 Ceylon Tobacco & 56,000 Distilleries company shares as a short term investment at a cost of Rs 36.9 m.n. This investment has a profit of Rs 11.4 m.n as at 31/03/2010 for the company. The profit of the short term investment would be very much higher today due to the appreciation of the share prices of these two shares after 31/03/2010.
  

Related news articles

• Coco Lanka has plans for further expansions

• Coco Lanka looking for Rs 360m.n zero cost cash