SL Equity Guide BLOG

 Plantation sector companies demonstrated huge recovery in Q1 2021 compared to Q1 2020. Most of the companies have posted very good earnings during the quarter aided by favorable prices as well as depreciating Rupee. The sector has to face-up with several challenges including wage hike and chemical fertilizer shortages but still the profitability of Q2 2021 looks like very good. Therefore I believe investors still have good investment opportunities in the sector, at least in short-term, if they can pick the right stock. In this light I have compared 13 plantation stocks and ranked them based on financial and market parameters and ranked them in a rating scale of 1 to 13 where 1 being the best and 13 being the worse.  Below is the financial parameter summary for these 13 stocks based on Q1 2021 quarter report. Earnings based figures have been annualized to reflect the full year view.  Based on above I have ranked companies under each of the seven financial parameters and b...

Diversified Conglomerates in CSE have been classified under different fields therefore investors can't really compare each other to understand which carries the better value. I have conducted an analysis using financial ratios as well as market ratios to rank each diversified company on their merits using a rating scale of 1-10 where 1 being the best and 10 being the worse. Using this analysis I have ranked 10 diversified conglomerates listed in CSE and ranked accordingly. The financial ratios used in this analysis are;, a) Return on Equity (ROE) - Profit attributable to shareholders / Equity balance b) Quick ratio - (Current assets - inventory) / Current liabilities c) Debtor turnover days - Trade payable balance / Sales revenue x 365 d) Gearing ratio - Total interest bearing borrowings / (Total interest bearing borrowings + Equity) e) Interest cover - Operating profit / Net finance cost f) OCF per share - Net cash generated from operations / No of shares in issue The market ratio...

The Food processing companies in CSE under new classification are not properly classified and not reflecting the true sector PE. Therefore I have selected 12 food processing stocks that are matching with the business in principle and calculated the "Cluster PE" based on the same company list to compare the relative (over) / under valuation of the different stocks based on the calculated cluster PE.  The below chart demonstrate the calculation mechanism of the said cluster PE for food processing companies. By using the above showed cluster PE I have calculated the individual PEs of 12 finance companies as of 2nd July based on trailing 4 quarter EPS basis. Then I have compared the PEs with the established cluster PE and list down the undervalued shares based on the highest degree of undervaluation as per below chart. I believe the above calculation will help you to identify the relative valuations of each finance sector stock and make it easy to take informed decisions. Thanks