Showing posts with label Mcleod. Show all posts
Showing posts with label Mcleod. Show all posts

Sunday, July 3, 2011

McLeod Russel - Buy

Mcleod Russel

CMP Rs 262

The impact of a series of acquisitions in the past five years is starting to reflect in the financials now. Mcleod Russel's topline has grown by 28% in Q4, mostly due to higher sales volume from tea gardens in Uganda. An increase in tea prices also helped it to post good numbers last year.

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The moot question is whether this performance will be sustained in the coming years. Analysts feel this is so because tea prices will remain high. "We expect the export prices to be high, especially due to the reduced production in Africa and flat production in Sri Lanka," says Sanjay Manyal, analyst at ICICI Securities.

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Analysts believe that the management may go for more acquisitions in Africa, thus helping boost the sales volume. Since the stock is trading at a reasonable valuation (trailing PE of 11.53), consider the scrip for long-term gains.

Our Recommendation :

This is a long term pick buy on declines and hold for 12-18 months for a decent return.

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

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Sunday, February 28, 2010

Buy McLeod Russel


source ET

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
No.429 Mahavir Tuscan
Near Hoodi Circle, Whitefield
Mahadevapura Post
BANGALORE 560048

For Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor