ELPL.N0000 (Elpitiya Plantations PLC)

[yellow knifeTop contributor]

Elpitiya Plantations belong to Aitken Spence Plantations Management PLC (61.64%) and Aitken Spence Plantations Management PLC is one on the most illiquid company listed.

Company is developing six pillars of revenue namely tea, rubber, Palm Oil, Hydro Power, Tea exports and commercial forestry.

Company strategically thinking to break loose from commodity trap and place the company on a platform that does not depend on weather and fluctuating commodity prices and hence diversify the operations.

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[yellow knifeTop contributor]

Revenue of the company is almost in the same line with other  plantations and moving with the herd.

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[yellow knifeTop contributor]

EPS in comparison with other plantation companies

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[yellow knifeTop contributor]

EPS of the company was maintained at 4 for 2015 but its ability to maintain the same for next year will be challenging as seen across the industry.

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[yellow knifeTop contributor]

PE ratio was continuously at a low level

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[yellow knifeTop contributor]

Dividend per share is not yet broken Rs 1.00 mark and as per first quarter report released its difficult to believe that barrier will be broken in next year.

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[yellow knifeTop contributor]

Sometimes you find Nonsense relationships among two variables..

Market value and net assets per share normally move hand in hand but this is an exceptional behaviour

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[yellow knifeTop contributor]

Noteworthy achievements during 2014/15. Palm Oil , low country ta and tea in the Pussellawa regions recorded remarkable results.

New Peacock Estate in Pussllawa achieved the highest ever yield of 3008 kg/ha  in Sri Lanka in the large estate category .

[yellow knifeTop contributor]

Hydro Power project has contributed 4,460 KW to the grid. Four more hydro-power projects in the pipeline . Other renewable energy generations sources are also under study including Wind, Solar, Biogas and currently initiated discussions for  a biogas generation project with a company which will be powered with POMPE ( Palm Oil Mill Effluent).

[yellow knifeTop contributor]

Eco Tourism is in the demand and many plantation companies are considering the possibility. ELPL is also considering that and Agar Wood to add revenue in future.

[yellow knifeTop contributor]

When challenge faced by all estates is shrinking work force. ELPL states that they are considering steps to mechanize the estate operations.

However i like to quote following

The fruits in oil palm bunches ripen unevenly  and have to be surgically  cut out at least every ten days to avoid rotting  and pest infestation. Engineers have never been able to mechanize the task and the work can only be done by hand. (54. How Asia Works)

Further elevation level of our tea estates make it difficult to mechanize the pruning process

[yellow knifeTop contributor]

I am a believer of subsidizing agriculture and following is quoted from p.4 of ELPL annual report 2015

We are grateful to the Government for continuing the fertilizer subsidy. the record yields we have achieved in our plantations without doubt is due to this support from the government and this has helped all stake holders to reap its benefits.

[Defender]

Cool! Easily digestable Data! thanks a lot.

[slstockVeteran]

This trend started in plantation sector as their cost of production was increasing for tea,rubber while market prices were not increasing proportionately /sufficiently ( actually it even dropped in rubber) .

Sometimes you find Nonsense relationships among two variables..

Market value and net assets per share normally move hand in hand but this is an exceptional behaviour

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[pathfinderTop contributor]

Thanks YK +

[sereneTop contributor]

Thanks YK.

[NuinthTop contributor]

Thx YK. Good job +.

[yellow knifeTop contributor]

2015/16

2015/16 was not a good year for Plantation sector.

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[yellow knifeTop contributor]

EPS fell down substantially with commodity price drop.

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[yellow knifeTop contributor]

Having a lower PE ratio does not always mean the share is attractive as future income is the important factor.

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[yellow knifeTop contributor]

Not all plantations can pay dividends..

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[yellow knifeTop contributor]

Net Assets and Market share move in opposite directions in plantation sector.

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[yellow knifeTop contributor]

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[yellow knifeTop contributor]

2017

ELPL  can be proud of the year ended and following grid is proudly presented in their annual report.

Descritpion	2017	2016	Increase %
Turnover	3,009,791.00	2,444,426.00	23
Gross Profit	607,401.00	175,312.00	246
PAT	463,289.00	219,812.00	111
Income Tax Expense	-43,452.00	-24,270.00	79
Current Assets	639,454.00	480,868.00	33
Shareholders Funds	3,912,787.00	3,393,732.00	15
EPS	5.77	2.69	114
Dividends	1.00	0.50	100
Net Assets P/S	53.70	46.57	15
ROE	15.21	8.41	81

[yellow knifeTop contributor]

Revenue of ELPL as well as its PAT has reversed the downward trend experience for some time.

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