Ceylon Tobacco Co. Plc (CTC.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

Ceylon Tobacco Co. Plc

Why is Ceylon Tobacco Co. Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 189.43%

Company has very low debt and has enough cash to service the debt requirements

Positive results in Dec 25

RAW MATERIAL COST(Y) Fallen by -0.24% (YoY)
CASH AND EQV(HY) Highest at LKR 59,675 MM
DEBT-EQUITY RATIO (HY) Lowest at -282.43 %

With ROE of 281.37%, it has a very attractive valuation with a 30.24 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 24.80%, its profits have risen by 0.5% ; the PEG ratio of the company is 10.8

Underperformed the market in the last 1 year

The stock has generated a return of 24.80% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 41.16%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ceylon Tobacco Co. Plc should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Ceylon Tobacco Co. Plc for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ceylon Tobacco Co. Plc

-100.0%

2.18

19.14%

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)

15.72%

EBIT Growth (5y)

16.53%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-2.05

Sales to Capital Employed (avg)

5.42

Tax Ratio

39.75%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

189.43%

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

30.24

EV to EBIT

5.89

EV to EBITDA

5.82

EV to Capital Employed

-19.16

EV to Sales

4.57

PEG Ratio

10.75

Dividend Yield

0.03%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

281.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly 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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.24% (YoY

CASH AND EQV(HY)

Highest at LKR 59,675 MM

DEBT-EQUITY RATIO (HY)

Lowest at -282.43 %

DEBTORS TURNOVER RATIO(HY)

Highest at 12.8 times

NET SALES(Q)

Highest at LKR 19,096 MM

OPERATING PROFIT(Q)

Highest at LKR 14,596 MM

PRE-TAX PROFIT(Q)

Highest at LKR 14,616 MM

NET PROFIT(Q)

Highest at LKR 8,205 MM

EPS(Q)

Highest at LKR 43.8

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 30,993 MM

Here's what is working for Ceylon Tobacco Co. Plc

Net Sales

Highest at LKR 19,096 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 14,596 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Pre-Tax Profit

Highest at LKR 14,616 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 8,205 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 43.8

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 59,675 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -282.43 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 12.8 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.24% (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 180 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 180 MM has Grown at 31.39%

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 Ceylon Tobacco Co. Plc

Operating Cash Flow

Lowest at LKR 30,993 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)