ScoreWhy is Ceylon Tobacco Co. Plc ?
1
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
2
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 %
3
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
4
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 ReportHow 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
23.58%
2.18
19.14%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.72%
EBIT Growth (5y)
16.53%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-2.05
Sales to Capital Employed (avg)
5.42
Tax Ratio
39.75%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
189.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
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%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
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 
Financial Trend9What 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 periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Operating Profit
Highest at LKR 14,596 MM
in the last five periodsMOJO 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 periodsMOJO 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 periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
EPS
Highest at LKR 43.8
in the last five periodsMOJO 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 periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -282.43 %
in the last five Semi-Annual periodsMOJO 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 periodsMOJO 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 periodsMOJO 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 yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (LKR MM)
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