ScoreWhy is Convenience Foods (Lanka) Plc ?
1
High Management Efficiency with a high ROCE of 49.42%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 73.92
3
Healthy long term growth as Net Sales has grown by an annual rate of 17.57%
4
Positive results in Mar 26
- ROCE(HY) Highest at 20.93%
- INTEREST COVERAGE RATIO(Q) Highest at 9,145.77
- CASH AND EQV(HY) Highest at LKR 4,930.51 MM
5
With ROE of 16.23%, it has a very attractive valuation with a 1.77 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 60.30%, its profits have risen by 15.5% ; the PEG ratio of the company is 0.7
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Convenience Foods (Lanka) 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 Convenience Foods (Lanka) Plc for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Convenience Foods (Lanka) Plc
60.3%
4.51
38.93%
Sri Lanka CSE All Share
11.95%
0.72
16.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.57%
EBIT Growth (5y)
9.23%
EBIT to Interest (avg)
35.93
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.68
Sales to Capital Employed (avg)
481.91
Tax Ratio
29.69%
Dividend Payout Ratio
2.90%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
46.55%
ROE (avg)
20.17%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.77
EV to EBIT
5.17
EV to EBITDA
4.44
EV to Capital Employed
3.32
EV to Sales
0.61
PEG Ratio
0.71
Dividend Yield
0.00%
ROCE (Latest)
64.28%
ROE (Latest)
16.23%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
ROCE(HY)
Highest at 20.93%
INTEREST COVERAGE RATIO(Q)
Highest at 9,145.77
CASH AND EQV(HY)
Highest at LKR 4,930.51 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 6.02 times
DEBTORS TURNOVER RATIO(HY)
Highest at 7.41 times
DIVIDEND PER SHARE(HY)
Highest at LKR 7.41
NET SALES(Q)
Highest at LKR 1,867.16 MM
PRE-TAX PROFIT(Q)
Highest at LKR 329.11 MM
NET PROFIT(Q)
Highest at LKR 249.88 MM
EPS(Q)
Highest at LKR 90.87
-6What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 8.8%
RAW MATERIAL COST(Y)
Grown by 11.04% (YoY
DIVIDEND PER SHARE(HY)
Lowest at LKR 7.41
Here's what is working for Convenience Foods (Lanka) Plc
Interest Coverage Ratio
Highest at 9,145.77
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at LKR 1,867.16 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Pre-Tax Profit
Highest at LKR 329.11 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 249.88 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
Net Profit
At LKR 249.88 MM has Grown at 64.2%
over average net sales of the previous four periods of LKR 152.18 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
EPS
Highest at LKR 90.87
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (LKR)
Cash and Eqv
Highest at LKR 4,930.51 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 6.02 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 7.41 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at LKR 7.41
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (LKR)
Here's what is not working for Convenience Foods (Lanka) Plc
Dividend per share
Lowest at LKR 7.41
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (LKR)
Dividend Payout Ratio
Lowest at 8.8%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 11.04% (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
Non Operating Income
Highest at LKR 0.29 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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