Ceylon Investment Plc (CINV.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

Ceylon Investment Plc

Colombo Investment Trust Plc

Galle Face Capital Partners PLC

First Capital Holdings Plc

Ceylon Land & Equity Plc

LVL Energy Fund Plc

Why is Ceylon Investment Plc ?

Strong Long Term Fundamental Strength with a 73.31% CAGR growth in Operating Profits

OPERATING CASH FLOW(Y) Highest at LKR 568.84 MM
NET SALES(HY) Higher at LKR 1,228.65 MM
NET PROFIT(HY) Higher at LKR 1,789.25 MM

With ROE of 15.15%, it has a very attractive valuation with a 0.72 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 106.15%, its profits have risen by 57.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.2

Market Beating Performance

The stock has generated a return of 106.15% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 61.92%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ceylon Investment 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 Ceylon Investment Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Ceylon Investment Plc

108.89%

3.17

37.34%

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)

97.05%

EBIT Growth (5y)

73.31%

EBIT to Interest (avg)

88.79

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.10

Tax Ratio

6.05%

Dividend Payout Ratio

17.02%

Pledged Shares

Institutional Holding

ROCE (avg)

15.87%

ROE (avg)

15.40%

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

0.72

EV to EBIT

4.38

EV to EBITDA

4.38

EV to Capital Employed

0.61

EV to Sales

4.03

PEG Ratio

0.08

Dividend Yield

0.15%

ROCE (Latest)

13.99%

ROE (Latest)

15.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 568.84 MM

NET SALES(HY)

Higher at LKR 1,228.65 MM

NET PROFIT(HY)

Higher at LKR 1,789.25 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 170.45%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

CASH AND EQV(HY)

Highest at LKR 8,162.49 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 524.21%

DIVIDEND PER SHARE(HY)

Highest at LKR 524.21

-7What is not working for the Company

NET SALES(Q)

At LKR 159.39 MM has Fallen at -41.98%

INTEREST(Q)

At LKR 4.37 MM has Grown at 2,832.21%

NET PROFIT(Q)

At LKR 171.07 MM has Fallen at -57.37%

PRE-TAX PROFIT(Q)

Fallen at -48.1%

Here's what is working for Ceylon Investment Plc

Operating Cash Flow

Highest at LKR 568.84 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)

Cash and Eqv

Highest at LKR 8,162.49 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 524.21%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at LKR 524.21

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Dividend Payout Ratio

Highest at 170.45%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0% (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

Here's what is not working for Ceylon Investment Plc

Net Sales

At LKR 159.39 MM has Fallen at -41.98%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (LKR MM)

Interest

At LKR 4.37 MM has Grown at 2,832.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Net Profit

At LKR 171.07 MM has Fallen at -57.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Pre-Tax Profit

Fallen at -48.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)