The next one month will be very interesting for agriculturals.
In the next one week, Williamson Tea and Kapchorua Tea will be reporting their end of year results (Financial Year ending March 2012).
The results are destined to ingnite the share price of the two in particular and majority of the agriculturals in general.
With the rains being in plenty and the Ksh versus the dollar showing signs of favouring the agriculturals again this year, the stellar 2011 performance should be replicated in 2012.
In particular, the tea companies will have it great this year. The average price of top grade Kenyan tea has been in the $3.50 - 3.60 levels for several weeks now. Compare this with last years average price per kg of $ 2.99.
Price targets for the two therefore are as follows:
Kapchorua: Ksh 180 - 200
Williamson: Ksh 350 - 400
This assumes a very conservative P/E of 3 post results.
Happy Hunting.
x handle: @stocksmaster79