Malwatte Vally Plantations - Pick of the Plantations

Malwatte Valley Plantations PLC is a Sri Lanka-based company engaged in the cultivation, manufacture and sale of black tea, rubber and other crop.

The Government of Sri Lanka has leased out 20 tea estates and six rubber estates to the Company for a period of 53 years from June 22, 1992.

These estates are located in the planting region of Bandarawela, Badulla, and Avissawella.

The Company operates through four segments

• Tea 
• Rubber, 
• Coconut and 
• Others

 Malwatte Valley Plantations PLC is a subsidiary of Wayamba Plantations (Pvt) Ltd. Malwatte Plantations is  the only plantation company listed in Colombo Stock Exchange to have a large and enviable interest in all three major crops, tea, rubber and coconut.

Projects -

Thilapia Project

As per the last annual report the company has re- generated the above project and introduced new stock to all existing tanks. The first harvest for the season was completed and more harvests are due. Endeavours have been made to make this project viable.

Pepper Project

The above project is very successful and reaped better harvests during the period last financial year ended 31.12.2009. It was expanded to 22,800 vines and future extension programmes are in progress. Pepper will generate considerable revenue towards the agricultural performance of the Company.

RSS smoke House Factory

Construction of a Smoke House at Moralioya Estate to produce 2000 kgs. per day is in progress. Modern production processes will be implemented in this factory.

Rambuttan Project

Plants have reached bearing stage and a good harvest is anticipated during the next season.

Future Strategy of MAL

The company will pursue a policy of diversification, replanting and making future investments in similar areas by way of acquisitions, merges etc.

Ethical Tea Partnership

The Company continues to have a close dialogue and good relations with the Ethical Tea Partnership
(ETP), which is a group of U.K. based tea buyers, who give preference to purchase teas produced
in factories, which adhere to certain guidelines and requirements, based on Social and Ethical
responsibilities, laid down by this particular Partnership.Over 90% of estate marks are supported
by the ETP.

Why Malwatte 

• MAL has the best P.E. Ratio among the listed Plantations in Colombo Stock Exchange.P.E.Ratio was 6.68 as at the end of trading session 09.09.2010.

• It is the most undervalued Plantation Company as per the reported financial figures as at 30.06.2010. The company E.P.S stands at Rs 13.17 as at 30.06.2010 & N.A.V. stands at Rs 74.40 as at 30.06.2010.

• MAL has been rated as a good stock as per their published financial reports as at 30.06.2010 among all the listed companies in Colombo Stock Exchange.

• MAL has a very good crop mix with Tea, Rubber & Coconut in their Estates.

• MD/ CEO of the Company is the third highest share holder as per the top 20 share holders list as at 30.06.2010.

 source - annual report - malwatte valley plantations,www.cse.lk,

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