TFS Corp growing on the right path

There is growing confidence that TFS Corporation (TFC) is finally turning a corner after its latest market update sent the stock climbing 2 cents, or 4.2% to 50 cents in early trade.

There is growing confidence that TFS Corporation (TFC) is finally turning a corner after its latest market update sent the stock climbing 2 cents, or 4.2% to 50 cents in early trade.

The Indian sandalwood plantation company said total sales surged 132% to 1614 hectares in 2012-13 and that it was confident of hitting its cash earnings before interest, tax, depreciation and amortisation (EBITDA) target of at least $35 million.

TFC reported an EBITDA of $34.4 million for 2011-12 but the market is expecting EBITDA to hit $44.5 million in the year just past.

However, the key thing investors will be focused on is TFC’s first commercial harvest that is expected before the end of the year.

Hitting this milestone will prove the company’s business model, which has been under a cloud with the stigma associated with managed investment schemes and unfriendly financial markets and rising tax, depreciation and amortisation expenses.

The stock has been sliding backwards for most of the past two years, although it recently bounced 26% from June’s nine-month low of 38 cents. 

TFS Corp is part of the Uncapped 100.