Dialog Axiata PLC (DIAL.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

Dialog Axiata PLC

Why is Dialog Axiata PLC ?

With a growth in Net Profit of 56.26%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Highest at LKR 65,921.19 MM
ROCE(HY) Highest at 28.43%
DEBT-EQUITY RATIO (HY) Lowest at 56.35 %

With ROE of 25.87%, it has a very attractive valuation with a 3.45 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 142.05%, its profits have risen by 67.6% ; the PEG ratio of the company is 0.2

Market Beating performance in long term as well as near term

Along with generating 142.05% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Dialog Axiata PLC should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Dialog Axiata PLC for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Dialog Axiata PLC

142.05%

9.19

30.15%

Sri Lanka CSE All Share

32.72%

1.90

17.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.38%

EBIT Growth (5y)

19.73%

EBIT to Interest (avg)

4.65

Debt to EBITDA (avg)

0.99

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

0.97

Tax Ratio

24.64%

Dividend Payout Ratio

66.45%

Pledged Shares

Institutional Holding

ROCE (avg)

14.47%

ROE (avg)

11.23%

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

3.45

EV to EBIT

8.82

EV to EBITDA

5.74

EV to Capital Employed

2.56

EV to Sales

2.02

PEG Ratio

0.20

Dividend Yield

0.03%

ROCE (Latest)

29.06%

ROE (Latest)

25.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 65,921.19 MM

ROCE(HY)

Highest at 28.43%

DEBT-EQUITY RATIO (HY)

Lowest at 56.35 %

NET SALES(Q)

Highest at LKR 47,292.2 MM

PRE-TAX PROFIT(Q)

Highest at LKR 11,631.76 MM

NET PROFIT(Q)

Highest at LKR 9,815.36 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 70.11%

RAW MATERIAL COST(Y)

Fallen by -12.6% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 47.47 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.37 times

DIVIDEND PER SHARE(HY)

Highest at LKR 4.37

EPS(Q)

Highest at LKR 1

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Dialog Axiata PLC

Operating Cash Flow

Highest at LKR 65,921.19 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)

Net Sales

Highest at LKR 47,292.2 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (LKR MM)

Pre-Tax Profit

Highest at LKR 11,631.76 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 9,815.36 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (LKR MM)

Debt-Equity Ratio

Lowest at 56.35 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Net Profit

At LKR 9,815.36 MM has Grown at 68.3%

over average net sales of the previous four periods of LKR 5,831.93 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Inventory Turnover Ratio

Highest at 47.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 4.37 times

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 4.37

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Dividend Payout Ratio

Highest at 70.11%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -12.6% (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