Central Industries Ltd. (CIND.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

Royal Ceramics Lanka Plc

Swisstek (Ceylon) Plc

Lanka Tiles PLC

Central Industries Ltd.

Lanka Ceramic Plc

Lanka Walltile Plc

Why is Central Industries Ltd. ?

Flat results in Mar 26

INTEREST(HY) At LKR 17.07 MM has Grown at 281.99%
OPERATING CASH FLOW(Y) Lowest at LKR -259.48 MM
RAW MATERIAL COST(Y) Grown by 6.33% (YoY)

With ROE of 13.29%, it has a very attractive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 20.34%, its profits have risen by 18.7%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Central Industries Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Central Industries Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Central Industries Ltd.

20.34%

2.06

32.25%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.95%

EBIT Growth (5y)

12.90%

EBIT to Interest (avg)

28.70

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

1.16

Tax Ratio

30.14%

Dividend Payout Ratio

22.30%

Pledged Shares

Institutional Holding

ROCE (avg)

28.12%

ROE (avg)

17.22%

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

EV to EBIT

-0.70

EV to EBITDA

-0.59

EV to Capital Employed

-0.14

EV to Sales

-0.09

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

13.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

NET SALES(Q)

Highest at LKR 1,876.06 MM

OPERATING PROFIT(Q)

Highest at LKR 339.04 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.07 %

-8What is not working for the Company

INTEREST(HY)

At LKR 17.07 MM has Grown at 281.99%

OPERATING CASH FLOW(Y)

Lowest at LKR -259.48 MM

RAW MATERIAL COST(Y)

Grown by 6.33% (YoY

Here's what is working for Central Industries Ltd.

Net Sales

Highest at LKR 1,876.06 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 339.04 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 18.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Depreciation

Highest at LKR 91.39 MM

in the last five periods

MOJO Watch

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

Depreciation (LKR MM)

Depreciation

At LKR 91.39 MM has Grown at 294.81%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (LKR MM)

Here's what is not working for Central Industries Ltd.

Interest

At LKR 17.07 MM has Grown at 281.99%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Operating Cash Flow

Lowest at LKR -259.48 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)

Raw Material Cost

Grown by 6.33% (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