Dankotuwa Porcelain Plc (DPL.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

Abans Electricals Plc

Hunter & Co. Plc

Dankotuwa Porcelain Plc

Why is Dankotuwa Porcelain Plc ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.06%

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.64 times

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At LKR -307.42 MM has Grown at -39.39%
ROCE(HY) Lowest at -30.89%
DEBT-EQUITY RATIO (HY) Highest at 103.22 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -24.26%, its profits have fallen by -713.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.26% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Dankotuwa Porcelain Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dankotuwa Porcelain Plc

-25.83%

-0.56

44.23%

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)

13.56%

EBIT Growth (5y)

-213.92%

EBIT to Interest (avg)

0.78

Debt to EBITDA (avg)

1.64

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

0.86

Tax Ratio

30.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.06%

ROE (avg)

7.28%

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

-2.57

EV to EBITDA

-3.04

EV to Capital Employed

0.45

EV to Sales

0.56

PEG Ratio

Dividend Yield

ROCE (Latest)

-17.57%

ROE (Latest)

-28.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR -4.77 MM

RAW MATERIAL COST(Y)

Fallen by -54.84% (YoY

CASH AND EQV(HY)

Highest at LKR 1,301.98 MM

NET SALES(Q)

Highest at LKR 1,077.14 MM

OPERATING PROFIT(Q)

Highest at LKR 18.37 MM

OPERATING PROFIT MARGIN(Q)

Highest at 1.7 %

PRE-TAX PROFIT(Q)

Highest at LKR -87.72 MM

NET PROFIT(Q)

Highest at LKR -104.72 MM

EPS(Q)

Highest at LKR -0.64

-10What is not working for the Company

NET PROFIT(HY)

At LKR -307.42 MM has Grown at -39.39%

ROCE(HY)

Lowest at -30.89%

DEBT-EQUITY RATIO (HY)

Highest at 103.22 %

INTEREST(Q)

At LKR 74.71 MM has Grown at 39.65%

Here's what is working for Dankotuwa Porcelain Plc

Operating Cash Flow

Highest at LKR -4.77 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Net Sales

Highest at LKR 1,077.14 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 18.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 1.7 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at LKR -87.72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Pre-Tax Profit

At LKR -87.72 MM has Grown at 73.1%

over average net sales of the previous four periods of LKR -326.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR -104.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR -0.64

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 1,301.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -54.84% (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 Dankotuwa Porcelain Plc

Interest

At LKR 74.71 MM has Grown at 39.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debt-Equity Ratio

Highest at 103.22 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio