SECTOR - PLANTATIONS
SECTOR P.E. - 12.50
MARKET P.E. - 17.75
Plantation companies in the Colombo Stock Exchange are mostly undervalued at present. Specially if you take past couple of months, Plantation companies as a Sector substantially under performed to the Overall market.
WHY PLANTATION SECTOR IS NOT ATTRACTIVE ?
- High Cost of Sales [ Labour cost,Fertilizer cost. etc]
- Volatility in Commodity prices in the market.
- Unpredictable weather conditions.
WHY PLANTATIONS ARE ATTRACTIVE NOW?
- Increasing Oil prices in the world market paved the way to increase the demand for Natural Rubber Products & Palm Oil products.
- Commodity prices are on the rebound presently.
- Most of Plantation companies are diversified.
- Sector which is substantially under performed to the market.
- Most of other sectors in the Colombo Stock Market are over heated now.
- Best strategy is to move away from heated speculative counters & to invest in plantations.
- Most of the share prices of other companies in the Colombo Stock Market are @ their highest levels reported for the past 5 to 7 years. But not the Plantations.
There are 18 plantation companies listed in Colombo Stock Market up to now.
Main income generating crops are
Apart from these core income generating sectors, many of listed plantation companies have diversified their business interest to the following areas as well.
* Hydro power * Tourism * Forestry *Investments *Other cultivations [Coconut, Perennial crops etc.]
Note - * December Companies +
* Profits including all other details of HORANA & WATAWALA Plantations were as at 31/12/09
BEST BETS IN THE MARKET
- Balangoda Plantation
- Malwatte Plantation
- Watawala Plantation
- Kotagala Plantation
- Namunukula
- Kegalle
- Kelani Valley
- Agalawatte
- Hapugastanne
- Maskeliya
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