Balangoda Plantations Plc (BALA.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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Balangoda Plantations Plc

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Malwatte Valley Plantations Plc

Browns Investments Plc

Hapugastenne Plantations Plc

Why is Balangoda Plantations Plc ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.08%

The company has declared negative results in Dec'2024 after 3 consecutive positive quarters

OPERATING CASH FLOW(Y) Lowest at LKR 660.67 MM
PRE-TAX PROFIT(Q) At LKR 51.19 MM has Fallen at -50.44%
NET PROFIT(Q) At LKR 43.95 MM has Fallen at -56.05%

Below par performance in long term as well as near term

Along with generating -12.19% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Balangoda Plantations Plc for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Balangoda Plantations Plc

-100.0%

1.02

38.71%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.87%

EBIT Growth (5y)

22.44%

EBIT to Interest (avg)

1.54

Debt to EBITDA (avg)

6.17

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

1.04

Tax Ratio

23.19%

Dividend Payout Ratio

6.38%

Pledged Shares

Institutional Holding

ROCE (avg)

10.08%

ROE (avg)

6.39%

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

1.08

EV to EBIT

13.02

EV to EBITDA

6.33

EV to Capital Employed

1.07

EV to Sales

1.00

PEG Ratio

0.53

Dividend Yield

0.11%

ROCE (Latest)

8.25%

ROE (Latest)

9.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 16.13 %

CASH AND EQV(HY)

Highest at LKR 69.9 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.96 times

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 660.67 MM

PRE-TAX PROFIT(Q)

At LKR 51.19 MM has Fallen at -50.44%

NET PROFIT(Q)

At LKR 43.95 MM has Fallen at -56.05%

RAW MATERIAL COST(Y)

Grown by 49.24% (YoY

OPERATING PROFIT(Q)

Lowest at LKR 97.89 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.45 %

Here's what is working for Balangoda Plantations Plc

Debt-Equity Ratio

Lowest at 16.13 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at LKR 69.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 7.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Balangoda Plantations Plc

Operating Cash Flow

Lowest at LKR 660.67 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Pre-Tax Profit

At LKR 51.19 MM has Fallen at -50.44%

over average net sales of the previous four periods of LKR 103.29 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 43.95 MM has Fallen at -56.05%

over average net sales of the previous four periods of LKR 100 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Operating Profit

Lowest at LKR 97.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (LKR MM)

Operating Profit Margin

Lowest at 8.45 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 49.24% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales