Plantation Sector Composite Analysis

 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 below is the summary of financial rankings.


The rankings for market dynamics based on prices as of 22nd June will be as follows.


After considering both set of dynamics and assigning a weightage of 50% each for financial and market aspects of the rankings here is the final rankings for these 13 plantation companies.


Now I think investors will be able to gain a good insight on what are the strengths and what are the weaknesses of each of the plantation companies before taking any investment decision.

Thank you


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