SL Equity Guide BLOG

Three Acre Farms rewarding the shareholders more than ever before. Time to enter the 300 club but are you ready !!!  Background Principal business activities of Three Acre Farms PLC (TAFL) are  Poultry Farming and Sale of day old Chicks Financial Performance TAFL's revenues were fluctuating during the last five years due to changes in the consumer demand time to time. However from 2020 onwards the revenue is expected to grow due to expected increase in demand for poultry products. Revenue to grow from LKR 2.5Bn in 2019 to LKR 3.1Bn in 2021 by a CAGR of 11%.  Despite revenue fluctuations earnings (profits attributable to shareholders) seems to be growing since 2017. Company recorded LKR 654Mn in 2017and reached to LKR 773Mn in 2019. 9 months ending 30th September 2020 the company reported a revenue of LKR 2.0Bn and a profit attributable to shareholders of LKR 0.6Bn. Given that Q4 is normally the best quarter for the company I expect TAFL to record a revenue of LKR 855Mn an...

  Background  The company engaged with manufacturing household & industrial products, trading in household, industrial, agricultural, transport products including servicing of same, retreading of tyres & management of estates, fully equipped motor vehicle repair yard with lubrication & servicing bays, tyre retreading & agriculture. Also the company has presence in financial sector as well. Ratio Analysis

 HNB Ratio Analysis

Lanka Milk Foods - Rewriting the history Background Main business activities of the company include importing, packing, exporting and selling of full cream, infant & skim milk powder and other types of milk allied products and fruit juices and energy drink. Due to the growing demand of the local produced milk products the weightage of revenue in the imported milk powder has been gradually declining where as the volume of sales from fresh milk and other related products are increasing. Revenue trending Revenue has been growing over the years to reach Rs. 6,7bn in FY 2019/20 and LMF has recorded a revenue of Rs 5.8bn for the 9 months ended 31st December 2020. 59% of the company revenue for 9months came from liquid milk and other related products and fruit juice and energy drink segment. Financial performance LMF's profitability during the last three years were fluctuating however its in an improving trend since 2019/20 due to enhanced margins from liquid  milk as well as imported...

Background RCL is country's main manufacturer and dealer of Porcelain Ceramic Tiles. RCL's business portfolio includes tiles & associated items, sanitary ware, aluminium, plantations, packaging & mining. Also RCL's associate companies have exposure on finance sector. Revenue mix 64% of the 2019/20 revenue came from tiles and associated products while 13% of the revenue came from packaging. 10% of the revenue came from  aluminium while the rest has come from sanitary ware, plantations & others. In 2019/20 the company has significantly improved on export revenue as well as added innovative new designs. The same strategies coupled with direct sales to large scale projects is said to boost future revenue as well and to cushion out any impact on future revenue by the removal/reduction of imported products by the Government. Financial Performance RCL's consolidated revenues were growing at a compound rate of 6% from 2015/16 to 2019/20 but profits have declined by ...

  Activated demand is seen on GRAN. Time to enter the 200 club again after ten years !!! Background Principal business activities of Ceylon Grain Elevators PLC (GRAN) are Manufacture & Sale of wide range of Feeds under the PRIMA brand, Poultry &Hatchery Breeder farms, Shrimp farm & Hatchery, Import & Sale of Poultry Equipment Vaccine & Transshipment. Financial Performance GRAN's revenues continue to grow during the last six years despite various challenges faced by the industry time to time. This shows the robustness of the business model of the company and the sustainability of the business. Revenue grew from LKR 13.7Bn in 2015 to LKR 17.7Bn in 2019 by a CAGR of 6.6%.  While revenue grow consistently earnings (profits attributable to shareholders) fluctuates during the same period mainly due to prices of raw materials fluctuation. Company recorded LKR 1.3Bn in 2016 but fell in 2017 to LKR 0.8Bn. But since then the profitability was improving. 9 months...