Gold Mine

The Land & Property sectors has been a top favourite of local punters, but stockbrokers LOLC Securities says investors should take a closer look at the valuation of these shares. The Land & Property sectors has been a top favourite of local punters, but stockbrokers LOLC Securities says investors should take a closer look at the valuation of these shares.

Associated Property Development Limited

The company owns a significant extent of prime property at the Union Place, Colombo 02, that has been last valued in 1987, at Rs. 35.95 mn. LOLC Securities is of the opinion that the current value of this property is around Rs. 150 mn, taking account of the rate at which property values have been appreciating in this locality of the Colombo city.

The firm's estimated book value at Rs. 49.50, is at a significant premium to the current market price of Rs. 34.50. "We are of the opinion that an upward re-rating of the counter is warranted," says analysts Vajira Premawardhana and Shamle