WATA Community

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Re: WATA Community

Postby Shadow walker » Thu May 25, 2017 6:30 pm

Value wrote:This is possible. Top 20 shareholder lists as at 31st Dec 2016 as well as 31st Mar 2017 have gone through many changes.


It can be senthilverl ...senthilverl share holding info.. :-bd

16.03.31 - 25.8M
16.12.31 - 21.4M
17.03.31 - 20.6M

:-bd
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Re: WATA Community

Postby Value » Thu May 25, 2017 7:39 pm

If I am optimistic, this will be my estimated profit figures for the upcoming quarter.
WATA Q1 2017-18 Anticipated performance.png

As suggested by Shark, Rs. 30 seems to be a good price to enter at.

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Re: WATA Community

Postby Blue Whale » Thu May 25, 2017 8:26 pm

WATA will be a good stock in coming quarters as well. People who bought below 30 can hold on for another some time. And those who have good profits may book them too. If fresh people are eying this stock better to wait for a price correction.

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Re: WATA Community

Postby PAT » Fri May 26, 2017 12:22 am

Thanks all...., good discussion...
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Re: WATA Community

Postby Blue Whale » Fri May 26, 2017 2:03 pm

WATA has a clear buyer even at this level. How much selling comes those quantities are absorbed convincingly.
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Re: WATA Community

Postby Blue Whale » Tue May 30, 2017 12:13 pm

Can anyone check whether Watawala's oil palm section is ok after this flood. Good a news that they have temporarily stopped the production of palm oil due to their estate was under flood. Please investigate and let us know.
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Re: WATA Community

Postby Blue Whale » Tue May 30, 2017 2:49 pm

So Dr.Senthilverl has bought 17k shares of WATA @ 34.40 after holding 23.7Mn shares :)) :)) :))

https://cdn.cse.lk/cmt/upload_cse_annou ... 31718_.pdf

Am I the only one seeing that there was a nice bait set to unload someone's quantities..
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Re: WATA Community

Postby Value » Tue May 30, 2017 9:01 pm

He has considerably increased his holdings looking at the Q4 Report of WATA.

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Re: WATA Community

Postby Blue Whale » Tue May 30, 2017 9:25 pm

I see something fishi there
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Re: WATA Community

Postby future123 » Tue May 30, 2017 9:42 pm

Has BW sold his WATA? ;) ;) ;) ;)

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Re: WATA Community

Postby Blue Whale » Tue May 30, 2017 9:44 pm

future123 wrote:Has BW sold his WATA? ;) ;) ;) ;)


:)) :)) :))
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Re: WATA Community

Postby CSE-SAS » Wed May 31, 2017 1:17 am

DISCLOSURE BY ASSETLINE SECURITIES (PVT) LIMITED RE: PURCHASE OF SHARES OF WATAWALA PLANTATIONS PLC BY THEIR CLIENT

30 May 2017


https://cdn.cse.lk/cmt/uploadAnnounceFi ... 59_728.pdf

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Re: WATA Community

Postby Chaminda » Wed May 31, 2017 2:37 am

future123 wrote:Has BW sold his WATA? ;) ;) ;) ;)

Very good observation future . It is very important to observe some personal behavior apart from the shares behavior . So NO ONE SHOULD FOLLOW ANYONE BLINDLY .
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Re: WATA Community

Postby SHARK » Sat Jun 10, 2017 4:51 am

the correction is taking place as we suggested from 34 to 32.50 and has further room to see towards at least 30 which I said earlier.
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Re: WATA Community

Postby Blue Whale » Sat Jun 10, 2017 11:50 am

The Q1 result will tell where WATA will stabilize. Q4 2016/17 provided a hint of what it will be.
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Re: WATA Community

Postby PAT » Tue Jun 27, 2017 8:16 am

Watawala posts top profit among Plantation companies for 2016/17
Oil palm earnings accounts for 83% of profit

Watawala Plantations PLC, a member of the Sunshine Group of Companies, has posted the best results among plantation companies in the year ended March 31, 2017.

"Your company has delivered the highest profit recorded by a plantation company of Rs. 1.2 billion for the year maintaining our record of delivering sustainable growth in earnings," Watawala Chairman Sunil. G. Wijesinha has told shareholders in the recently released annual report for the year.

"A long-term view of the industry, focus on the triple bottom line and a strong commitment to realize the full potential of the company has been key to delivering performance," he said adding that they continued to invest in fields, factories and people even during lean periods."

Watawala in connected to Tata Global Beverages Plc. which its MD, Vish Govindasamy says has been a key factor in their success as it provided access to expertise and global networks. Their other international connection is to Pyramid Wilmar (for palm oil) while more recently they’ve linked with Duxton Asset Management for support in their venture into dairy farming.

The year under review saw Watawala boosting revenue to Rs. 6.5 billion from Rs. 6.3 billion a year earlier and posting an after tax profit of Rs. 1.23 billion, over double the previous year’s Rs. 518 million.

The company controls 12,018 ha. of land of which 7,950 in cultivated in tea and oil palm in 17 plantations in the Hatton/Watawala and Lindula regions with oil palm grown in Udugama in the Galle district. The year saw an average tea production of 49,945 kg of tea per day, up marginally from a year earlier while palm oil production remained flat at 45,000 kg. per day.

Wijesinha said that shareholder value delivered during the year included an interim dividend of Rs. 0.65 and a final dividend of Rs. 0.85 for the year and an increase of Rs. 5.10 in the market value of Watawala shares.

They were continuing to diversify and increasing the scale of a dairy farming project in an unviable tea plantation from the second half of the current financial year, he said.

The company’s Managing Director Vish Govindasamy noted that their profit in the year under review was the highest in the history of both the company and the industry despite a modest 3% revenue growth; drought-hit tea production saw volumes down by 21% from the previous year.

Palm oil production supported revenue growth improving 18% in volume terms over the previous year, off-setting the negative impact of tea and accounting for 83% of the company’s profits.

"We were able to make a positive return on tea after three consecutive years of losses despite the wage increase as markets rallied during the year and we were well positioned to benefit from it," Govindasamy said.

He also noted that "plucking tea is not an attractive job, but it is a job that must be made more interesting and viable." Aspirations of employees are higher than before and estates had to cater to youth joining the workforce by improving the type of work and making it more attractive.

"(We) are one of the few companies in the sector that has been able to convince our workforce to open bank accounts and have salaries remitted to them. Many have been issued ATM cards and trained on their usage."

Watawala grows oil palm in Homadola and Talangaha Estates. While cinnamon has been grown on their estates on a small scale over the past eight years, the plantation has now been expanded to 67 ha. with a peeling center and a cinnamon oil extraction plant set up at Homadola Estate.

The company also has 1,058 hectares of managed forests with Eucalyptus grown as a high-end timber and Calliandra as a short rotation crop in the Hatton and Lindula regions with the intention of becoming self-sufficient in fuel wood.

Estate Management Services, connected to the Sunshine Group, Tata Global Beverages and Pyramid Wilmar (each holding a third) is the controlling shareholder with 75.65% of Watawala followed by Dr. T. Senthilverl (8.73%).

Watawala has a stated capital of Rs. 460,000, retained earnings of Rs. 5.3 billion, total assets of Rs. 9.1 billion and total liabilities of Rs. 3.06 billion in its books.

The directors of the company are: Messrs. SG Wijesinha (Chairman), G. Sathasivam (alternated SG Sathasivam), V. Govindasamy (MD), AK Misra, K Venkataramanan, AN Fernando, MS Mawzoon, D. Ramanayake, CP Thomas, BA Hulangamuwa and NB Weerasekare.
http://www.island.lk/index.php?page_cat ... tle=167171
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Re: WATA Community

Postby PAT » Tue Jun 27, 2017 8:17 am

Watawala upbeat on dairy prospects on Lonach

Watawala Plantations PLC is confident that its new dairy project on Lonach Estate, entailing foreign collaboration and substantial investment will make good and has projected a 40% return on investment.

In March 2016, Watawala signed an agreement with PADC Holdings, a subsidiary of Duxton Asset Management to set up the USD 11.5 million dairy operation on Lonach under the banner of Watawala Dairy Ltd.

The Watawala annual report says that Duxton is a leading agricultural asset management firm based in Singapore with a portfolio of approx. USD 700 million and with extensive experience in dairy farming in Australia and Indonesia.

"The BOI investment is expected to be fully operational by 2018 and will have 1,700 cows of which 1,000 will be dairy cows producing 30,000 liters of milk per day," the report said.

"Initially fresh produce will be sold to commercial buyers pending branding and value addition in the future."

The cows will be housed in stalls as opposed to being pastured, the report said, given the inherent terrain on the estate, resources and space available on the farm. The business plan envisages using a Total Mixed Ration (TMR) method of feeding the animals where all feedstuff will be weighed and blended into a complete ration and fed to meet the nourishment needs of dairy cows.

"TMR is the most adopted method of feeding high producing, indoor housed dairy cows in the world," Watawala said.

The pilot project under development commenced a few years back and Watawala which currently runs a 167 animal herd, with 82 milking cows, produced 42,321 liters of milk in the last financial year on Lonach which covers 442.37 ha. The operation posted an operating loss of Rs. 13.6 million in the last financial year.

Currently there are 160 cows producing 1,143 liters of milk daily generating revenue of Rs. 32.6 million.

"The project is expected to provide better employment for the estate workers through herd and feedstock management given the tea operations within the estate have been lagging,’’ the report said.

The company expressed confidence that the project will contribute "considerably" towards the group’s future profitability. It said that it will continue to leverage Duxton’s expertise in setting up and managing the project.
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Re: WATA Community

Postby Shadow walker » Tue Jun 27, 2017 9:01 am

PAT wrote:Watawala upbeat on dairy prospects on Lonach

Watawala Plantations PLC is confident that its new dairy project on Lonach Estate, entailing foreign collaboration and substantial investment will make good and has projected a 40% return on investment.

In March 2016, Watawala signed an agreement with PADC Holdings, a subsidiary of Duxton Asset Management to set up the USD 11.5 million dairy operation on Lonach under the banner of Watawala Dairy Ltd.

The Watawala annual report says that Duxton is a leading agricultural asset management firm based in Singapore with a portfolio of approx. USD 700 million and with extensive experience in dairy farming in Australia and Indonesia.

"The BOI investment is expected to be fully operational by 2018 and will have 1,700 cows of which 1,000 will be dairy cows producing 30,000 liters of milk per day," the report said.

"Initially fresh produce will be sold to commercial buyers pending branding and value addition in the future."

The cows will be housed in stalls as opposed to being pastured, the report said, given the inherent terrain on the estate, resources and space available on the farm. The business plan envisages using a Total Mixed Ration (TMR) method of feeding the animals where all feedstuff will be weighed and blended into a complete ration and fed to meet the nourishment needs of dairy cows.

"TMR is the most adopted method of feeding high producing, indoor housed dairy cows in the world," Watawala said.

The pilot project under development commenced a few years back and Watawala which currently runs a 167 animal herd, with 82 milking cows, produced 42,321 liters of milk in the last financial year on Lonach which covers 442.37 ha. The operation posted an operating loss of Rs. 13.6 million in the last financial year.

Currently there are 160 cows producing 1,143 liters of milk daily generating revenue of Rs. 32.6 million.

"The project is expected to provide better employment for the estate workers through herd and feedstock management given the tea operations within the estate have been lagging,’’ the report said.

The company expressed confidence that the project will contribute "considerably" towards the group’s future profitability. It said that it will continue to leverage Duxton’s expertise in setting up and managing the project.


Good news for WATA community ..
Thanks pat.. :-bd

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Re: WATA Community

Postby SHARK » Tue Jun 27, 2017 11:52 am

Yes its good news. The previous run could have partly due to this. Therefore need to wait for a good pull back.
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Re: WATA Community

Postby Shadow walker » Fri Jun 30, 2017 9:55 am

Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time .. ;)


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Re: WATA Community

Postby Blue Whale » Fri Jun 30, 2017 9:59 am

This will make the task of analysts like me easier. We can separately assess the tea performance and palm oil performance once the new company is formed.
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Re: WATA Community

Postby SHARK » Fri Jun 30, 2017 11:49 am

Is there any indication from management how they will meet the investment amount USD 11.5 mil for their dairy project.

have they already found the money for the 100% investment....

will they go for some borrowing or attractive rights...

divesting Tea operations is good.. but can have short term value adjustments.... that can put some retailers off guard as to true value... and new investment fund requirements

price is 31.50 presently.

will it be able too hold 30.

Good to find collection below 31.50
wata.png


See FIB magic indicated extreme @34 a 8% minor pull back so far.
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Re: WATA Community

Postby Value » Fri Jun 30, 2017 12:10 pm

Thanks Shark for the details and the chart.

Referring to AR 2016/17, WATA has already invested Rs. 626.5 Mn into the dairy business with 68.2% control.

So total investment by WATA and the the joint venture partner already made is Rs. 918 Mn.

WATA has got good cash balance of around Rs. 888 Mn, a receivable from related companies of Rs. 280 Mn and a debt balance of Rs. 443 Mn as at 31st March 2017.

USD 11.5 Mn comes to Rs. 1,670 Mn. WATA is to invest around (68.2%) Rs. 1,138 Mn out of which Rs. 623 Mn is already made.

Further fund required by WATA is Rs. 515 Mn which WATA can easily get without even borrowing.

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Re: WATA Community

Postby Blue Whale » Fri Jun 30, 2017 12:12 pm

I think they are restructuring the group. Divestment will not be the intention.
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Re: WATA Community

Postby SHARK » Fri Jun 30, 2017 12:35 pm

viewtopic.php?p=44566#p44566

Dear Val

Can you tell how you derived these numberz for 2016...
i am unable to cross check same with actuals.
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