SNAPSHOT OF THE PLANTATION SECTOR ;
There are 19 companies listed under the plantations sector on the Colombo Stock Exchange generating a total market capitalization of LKR 22Bn. The industry is mainly export oriented revolving around Tea, Rubber and Palm Oil cultivation, however the segment is currently going through changes.
Ceylon Tea commands $ 1.2Bn of the Export Market while Rubber has an Export Economy of $24 Mn.
BRIEF ON THE LARGEST CONTRIBUTORS IN THE PLANTAINS SECTOR ;
The largest contributor according to market capitalization is Watawala Plantation with a market cap of LKR 4.5Bn, it is the largest palm oil cultivator in the island.
In the financial year 2016 palm oil generated LKR 1.6Mn profit and in a global context it is in high demand with an expected growth of 7.3% over the next 5 years.
WOULD AN INVESTOR BENEFIT FROM ADDING PLANTATION STOCKS TO HIS PORTFOLIO?
Analysis of the Plantation Sector and the dynamics involved, on Channel Eye’s “Business Today” 11-01-2017 – Senior Research Analyst Hansinee Beddage.