Alliance Finance Co. Plc (ALLI.N0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dialog Finance Plc

Commercial Credit & Finance PLC

Alliance Finance Co. Plc

Central Finance Co. Plc

LOLC Finance Plc

People's Leasing & Finance PLC

HNB Finance Plc

Mercantile Investments & Finance PLC

LOLC Holdings Plc

Senkadagala Finance PLC

Hunter & Co. Plc

Why is Alliance Finance Co. Plc ?

Strong Long Term Fundamental Strength with a 16.96% CAGR growth in Net Sales

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at LKR 13,022.62 MM
ROCE(HY) Highest at 19.95%
RAW MATERIAL COST(Y) Fallen by -4.4% (YoY)

With ROE of 20.52%, it has a attractive valuation with a 1.39 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 157.14%, its profits have risen by 66.9% ; the PEG ratio of the company is 0.1

Consistent Returns over the last 3 years

Along with generating 157.14% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Alliance Finance Co. Plc should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Alliance Finance Co. Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Alliance Finance Co. Plc

159.93%

4.96

44.77%

Sri Lanka CSE All Share

60.36%

3.56

17.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.96%

EBIT Growth (5y)

17.21%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.66

Tax Ratio

43.68%

Dividend Payout Ratio

32.56%

Pledged Shares

Institutional Holding

ROCE (avg)

1,011.56%

ROE (avg)

14.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.39

EV to EBIT

1.47

EV to EBITDA

1.33

EV to Capital Employed

3.34

EV to Sales

0.35

PEG Ratio

0.10

Dividend Yield

0.05%

ROCE (Latest)

227.71%

ROE (Latest)

20.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 13,022.62 MM

ROCE(HY)

Highest at 19.95%

RAW MATERIAL COST(Y)

Fallen by -4.4% (YoY

CASH AND EQV(HY)

Highest at LKR 18,339.27 MM

DIVIDEND PER SHARE(HY)

Highest at LKR 0.39

PRE-TAX PROFIT(Q)

Highest at LKR 1,275.81 MM

NET PROFIT(Q)

Highest at LKR 740.94 MM

EPS(Q)

Highest at LKR 21.99

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 41.84%

Here's what is working for Alliance Finance Co. Plc

Operating Cash Flow

Highest at LKR 13,022.62 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Pre-Tax Profit

Highest at LKR 1,275.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Pre-Tax Profit

At LKR 1,275.81 MM has Grown at 91.17%

over average net sales of the previous four periods of LKR 667.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 740.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Net Profit

At LKR 740.94 MM has Grown at 99.82%

over average net sales of the previous four periods of LKR 370.81 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 21.99

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 18,339.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at LKR 0.39

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Raw Material Cost

Fallen by -4.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at LKR 101.01 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Here's what is not working for Alliance Finance Co. Plc

Dividend Payout Ratio

Lowest at 41.84%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)