Sector - Food, Beverage & Tobacco

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Sector - Food, Beverage & Tobacco

Postby stocks hunter » Fri Aug 21, 2015 7:33 am

There are 21 listed companies under food & beverage sector in CSE as at today. Food & Beverage sector is going to play a major role in a consumer driven economy in future. Hence it is important to have in depth knowledge in this sector and the most discounted shares which are trading at attractive levels for our future.

I have listed down the shares for the comparison which the trading prices are above Rs100.

Take your own decision.

:D
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Re: Comparison - Food & Beverage Companies

Postby sashimaal » Fri Aug 21, 2015 7:41 am

Thanks a lot SH !

BFL - shall we take the negative goodwill out of the equation pls?
Last edited by sashimaal on Fri Aug 21, 2015 9:04 am, edited 1 time in total.
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Re: Comparison - Food & Beverage Companies

Postby Chaminda » Fri Aug 21, 2015 8:32 am

Thanks SH.. :)

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Re: Comparison - Food & Beverage Companies

Postby Contra » Fri Aug 21, 2015 11:40 am

Thank you for the table.

I have found discrepancies in sectors and groups. We should make use of these discrepancies to take better decisions. By comparing stocks in the same group and sector we can find attractive stocks. This method will be very useful when market become very hot. Currently, I am comparing stocks in selected groups such as banking, production, Food and Tea etc. However, in bull market there will be strong momentum stocks as well.

If we see great value, strong momentum and strong earnings in stocks we should not hesitate to buy them. These types of stocks will have very strong pattern.


We should study economic polices on the following as well. If we see some positive trends in the following areas, food sector will have a strong growth.There will be food security as well. Not only economy but also listed food companies will benefit lot in the mid and long run.

•Local food production program which makes the country self-sufficient

•Agricultural research

•Export incentives

•Effective use of uncultivated farm lands.

•Educating farmers

•The environment preservation program

•Implementation of modern Grain and farm storage facilities to maintain quality and quantity, thus reducing product loss and financial loss.
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Re: Comparison - Food & Beverage Companies

Postby stocks hunter » Sat Aug 22, 2015 8:26 am

Yes sashimal,

I took the challenge. If you minus negative good will of Rs24,977,664, the net profit figure of BFL will be Rs125,070,635. Share capital of the company is 16.0mn.

There for Rs125,070,635/16,000,000 = Rs7.815(EPS for the June Quarter)

Annualized EPS is = Rs7.815*4

= Rs31.26

Negative Good will - Statement from the company says

Quote

Company has increased its share holding at Fortune GP Farms (Lanka) Limited from 39.54% to 50.00% as at 30th June
2015, and it has become a Joint Venture company. As a result of this transaction, negative Goodwill of Rs. 24,977,664/- has
been recognized in the Group's Statement of Profit or Loss and Other Comprehensive Income.

Un quote

Again you have to decide ..........

:D
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Re: Comparison - Food & Beverage Companies

Postby SHARK » Sat Aug 22, 2015 9:13 am

Rs. 250/- Min our Target
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Re: Comparison - Food & Beverage Companies

Postby sashimaal » Sat Aug 22, 2015 9:58 am

Thanks SH !

BFL sure looks good.

Does anyone have any details of the EPS contribution expected from the JV (via cost reduction, etc) ?
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Re: Comparison - Food & Beverage Companies

Postby stocks hunter » Sat Aug 22, 2015 7:46 pm

Sashimal,

Just look at the contribution receiving from the Associate company Fortune GP farms. One of largest breeder farms in Sri lanka. This is capable of producing more than 80% DOC requirements in SL. Apart from that they have been engaged in exporting of DOCs/ PDOCs as well. Their profitability is in increasing trend YoY over the past few years and they are yet get maximum from this company. I strongly believe Fortune GP farm will contribute its maximum to the parent company after its commencement during current financial year.

BFL 's JV company Fortune Agro industries will commence its operations from late Aug - Early Sep 2015. This company is in a position to supply all the poultry feed requirements of the BFL - farms, which are now obtain from the local mkt. Apart from that this company will supply much needed storage facilities to the BFL which are now on rent basis. I strongly believe the cost reductions will come in effect to the bottom line of the BFL from Dec Q 2015.

The financial year 2015 mentioned in the attachment is for the FY14/15 ending march 2015.The current financial year of the company which is FY15/16 is from 01/01/2015 to 31/03/2016.

Taking all these factors in to consideration I'm of the view that BFL is heading for a record breaking FY.

:D
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Re: Comparison - Food & Beverage Companies

Postby sashimaal » Sat Aug 22, 2015 8:01 pm

Thanks a lot SH for the detailed info !
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Re: Comparison - Food & Beverage Companies

Postby stocks hunter » Sat Aug 22, 2015 8:27 pm

JV and the Associate company will produce minimum Rs50.0mn contribution to the bottom line of BFL annually at the initial stages. This is around Rs3.125 EPS.

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Re: Comparison - Food & Beverage Companies

Postby sashimaal » Sat Aug 22, 2015 10:45 pm

Thanks SH, that's the figure i was looking for :)
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Re: Comparison - Food & Beverage Companies

Postby SHARK » Sat Aug 22, 2015 10:48 pm

I have not looked at BFL deeply .... thanks SH and Sash for the active participation, and SH it would be great idea to open up SECTORS in TEC so general discussion can be continued with sector analysis.
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Re: Sector - Food, Beverage & Tobacco

Postby Contra » Fri Oct 02, 2015 1:30 pm

Even top investment and research houses such as Goldman and Asia Analytica are covering food and beverage stocks such as chicken and egg related stocks.

Globally there is a good demand for chicken and egg related stocks and their prices are appreciating accordingly. For example Malyaian based egg producer Teo Seng Capital Bhd's shares rose 3.29% due to rising interest in the stock on the back of a rebound in egg prices. This stock has risen steadily since early last month on the back of a rebound in egg prices; climbing 38.94% since September 2 .

Goldman has listed 25 stocks with high dispersion scores that they believe have the largest upside potential. TSN one of the attractive chicken related stocks in the world has given 2.1. It is about to break its 52 week high again. Coca-Cola has got 2.9.

Tyson Foods Inc. TSN, +1.32% 2.1

There is poultry supply shortage in Saudi Arabia as well. This has led to egg prices jump in Qatar. All over the world egg prices are rising due to strong demand. According to some industry analysts, there could be shortage in poultry products in Asia in 2016/17. This is something to study further.
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Re: Sector - Food, Beverage & Tobacco

Postby Contra » Sun Feb 21, 2016 12:09 pm

Some food stocks which include poultry related stocks are new movers in global markets now.

Food stocks are going to be yummy to global investors. All types of pullback, corrections and sell-off are creating opportunity. Investors are looking for undervalued stocks having positive earnings. Suddenly, entire food sector has gotten lift. This sector is going to be one of the bullish sectors in global markets in 2016/17. There will be grate demand for food stocks including poultry stocks globally as long as they maintain value. Smart money takes more positions in these areas now.

http://www.investors.com/news/why-are-t ... investors/

Why Are Tyson Foods, Sysco So Yummy To Investors?

Among food lot, Chicken stocks could have one of the longest rallies in the history. At the moment American chicken is leading followed by other chicken in Asian and Pacific markets. .


Sooner than later, we should see strength in listed food stocks specially in listed poultry stocks in the CSE as well due to very attractive value and earnings outlook. TAFL has become emerging company in the group now. Other two namely, BFL and GRAN are also maintaining above average growth now. We cannot ignore their higher ROE and debt to equity ratio etc as well. More attractive earnings in the future means more cash in their hand and more benefits to shareholders.
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Re: Sector - Food, Beverage & Tobacco

Postby Contra » Sun Feb 21, 2016 11:19 pm

http://www.forbes.com/sites/greatspecul ... c711e94953

Food Stocks And REITs Among The Market's Strongest
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Re: Sector - Food, Beverage & Tobacco

Postby stocks hunter » Sun May 29, 2016 3:46 pm

I have prepared this comparison table in the stocks listed in the F&B sector in CSE. I have included only the high price stocks in the sector which are directly involved in manufacturing and selling of food and beverage items.

Stocks highlighted in Yellow represents financial perofrmance as at 31/03/16.

These are the snap shot obtained from the comparison table. Please be mind full that this is based on history performances of these companies.

I have listed down the best performing three companies in each catogery for easy referance.

As per the YoY share price growth it is obvious that the shares of poultry stocks are performing well in the mkt to justify their superior earnings growth and the strong fundamental position.That is the reality.How ever it is obvious that these shares are still trading under valued to its peers.

Further it is obvious that the investors have forget about or pay lower attention towards the valuations of companies that pay higher dividends continuously.

When you observe the highest and the lowest trading prices of these shares in the history it is obvious that not only poultry stocks that had reported higher prices(Now trading below its fair values)as many are trying to pointed out(It was the overall mkt forces) and justifys that the earnings and the valuations that drive the share prices up in the past,present and it is common to future as well.

You can see some of stunning price appreciations of stocks over the period,outstanding funadamental and earnings in some companies at present yet trading at discounted prices, staggering improvement of dividend payments over the period,and all these are complied to fullfil the FUTURE expectations of investors at present.

:D

*Sector PE = 16.04

*Sector PBV = 3.6

GP Margin - (Highest Order)

1. CTC

2. CTEA

3. NEST

NP Margin – (Highest Order)

1. CTC

2. TAFL

3. CTEA

Operating Margin – (Highest Order)

1. CTC

2. TAFL

3. DIST

ROA – (Highest Order)

1. CTC

2. NEST

3. TAFL

ROE – (Highest Order)

1. CTC

2. NEST

3. TAFL

ROI – (Highest Order)

1. CTC

2. NEST

3. TAFL

Cash flow/share – (Highest Order)

1. HARI

2. NEST

3. CTEA

Debt/Equity - (Lowest Order)

1. CTC, CTEA

2. TAFL

3. HARI

YoY change % - (Highest Order)

1. TAFL

2. BFL

3. CCS

DPS/Share – (Highest Order)

1. HARI

2. NEST

3. CTC

PE – Last 4Q – (Lowest order)

1. TAFL

2. BFL

3. SOY

PBV – (Lowest Order)

1. BFL

2. DIST

3. TAFL

We can see that CTC has represent 8 times in the above table between 1st place and 3rd place, NEST has represent 6 times and TAFL has represents 9 times.

Copy paste the link or click it for larger view of the table - download/file.php?id=2090

;)
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Re: Sector - Food, Beverage & Tobacco

Postby sashimaal » Sun May 29, 2016 9:07 pm

Thanks SH for the detailed analysis !
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Re: Sector - Food, Beverage & Tobacco

Postby topcat » Mon May 30, 2016 10:21 am

Thanks SH. As I remember you were the first to say about good news to come when the market going down. At the moment what is your view on market?
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Re: Sector - Food, Beverage & Tobacco

Postby stocks hunter » Mon May 30, 2016 11:23 am

TC,

Every mkt has ups and downs. You can't expect mkt to go up all time. In January we had to face to the worst situations. Every body expect mkt to come down to ASI 5000 levels coz such bad news were there.

But you know what has happened. Hold on to your quality stocks. Just go through the below table you will see how the value stocks drive the share prices up.

Select good stocks and let the mkt to look after your stocks. It will deliver you above average returns in future for sure.

In future we have many good news to reach the mkt and country. Many are trying to grab value counters at lower prices. That battle is going on. Finally value counters and the strongest /brainy investors will win the game......

Just look at APLA......... See how strong the counter is. We have to identify these type of counters for future. Mkt ASI is still around 6500 levels and you are not buying in a mkt which the ASI is at 7500 or 8500 levels.

All the best.....

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Re: Sector - Food, Beverage & Tobacco

Postby stocks hunter » Wed Jun 01, 2016 6:31 am

What ever said and done we have to identify one thing. Only the value of a share that counts the price improvements of the particular share in the long run.

But what is interesting is still people forget to identify the value counters some times and this creates opportunities to others.....

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Re: Sector - Food, Beverage & Tobacco

Postby stocks hunter » Thu Jun 09, 2016 9:52 pm

F&B sector is the second best performing sector for the 1Q16.....

:ymhug: :ymhug

source - acuity stock brokers.
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Re: Sector - Food, Beverage & Tobacco

Postby Contra » Sat Jun 25, 2016 4:42 am

In the current global market carnage, some stocks such some mining stocks, health related, energy services, retailers, restaurants and food and beverages stocks including American chicken stocks have outperformed others. In short, they defied brexit panic and beat other stocks. Share prices of some food related companies went up on a huge volume. Globally, consumer good sector equities under review and there could be some great opportunities after this Brexit. Grain mills stocks were also steady. Banks and finance stocks hit the hardest. However, I believe these banking stocks should recover by July.

As I said before, global Food stocks have more legs specially stocks having attractive valuations and future prospects. They should outperform broader market due to new global development as well.


http://money.cnn.com/2016/06/24/investi ... to-safety/

Several food stocks were rallying too, including SPAM maker Hormel (HRL) (cue the Monty Python!), Tyson Foods (TSN), Hershey (HSY) and supermarket chain Kroger (KR).
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Re: Sector - Food, Beverage & Tobacco

Postby stocks hunter » Sun Jul 03, 2016 4:19 pm

I have included GRAN also to the FB performances list. However GRAN reprsents Manufacturing sector in CSE.

:D
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Re: Sector - Food, Beverage & Tobacco

Postby stocks hunter » Fri Sep 09, 2016 6:41 am

This sector comprise of some attractively valued/discounted stocks,over valued stocks and high dividend paying stocks. F&B sector has a good attention from the investors in CSE.

:)
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Re: Sector - Food, Beverage & Tobacco

Postby SHARK » Sat Sep 10, 2016 10:41 pm

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