ScoreWhy is Diesel & Motor Engineering Plc ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 17.08% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 2.95% signifying low profitability per unit of shareholders funds
2
With a growth in Net Sales of 18.62%, the company declared Very Positive results in Jun 25
- INVENTORY TURNOVER RATIO(HY) Highest at 4.16%
- NET SALES(Q) Highest at LKR 16,810.54 MM
- OPERATING PROFIT(Q) Highest at LKR 1,069.64 MM
3
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 181.68%, its profits have fallen by -105.3%
4
Market Beating performance in long term as well as near term
- Along with generating 181.68% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Diesel & Motor Engineering Plc should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Diesel & Motor Engineering Plc for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Diesel & Motor Engineering Plc
-100.0%
3.53
64.12%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.08%
EBIT Growth (5y)
-1.10%
EBIT to Interest (avg)
1.01
Debt to EBITDA (avg)
7.74
Net Debt to Equity (avg)
1.67
Sales to Capital Employed (avg)
1.13
Tax Ratio
32.86%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.88%
ROE (avg)
2.95%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.46
EV to EBIT
45.36
EV to EBITDA
27.32
EV to Capital Employed
1.16
EV to Sales
0.91
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.55%
ROE (Latest)
-3.90%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 4.16%
NET SALES(Q)
Highest at LKR 16,810.54 MM
OPERATING PROFIT(Q)
Highest at LKR 1,069.64 MM
OPERATING PROFIT MARGIN(Q)
Highest at 6.36 %
PRE-TAX PROFIT(Q)
Highest at LKR 385.08 MM
NET PROFIT(Q)
Highest at LKR 284.27 MM
EPS(Q)
Highest at LKR 30.79
-9What is not working for the Company
NET PROFIT(9M)
At LKR -625.4 MM has Grown at -292.22%
OPERATING CASH FLOW(Y)
Lowest at LKR -5,911.64 MM
RAW MATERIAL COST(Y)
Grown by 8.12% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 198.75 %
Here's what is working for Diesel & Motor Engineering Plc
Pre-Tax Profit
At LKR 385.08 MM has Grown at 179.14%
over average net sales of the previous four periods of LKR -486.56 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (LKR MM)
Net Profit
At LKR 284.27 MM has Grown at 189.91%
over average net sales of the previous four periods of LKR -316.19 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (LKR MM)
Net Sales
Highest at LKR 16,810.54 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Net Sales
At LKR 16,810.54 MM has Grown at 34.02%
over average net sales of the previous four periods of LKR 12,543.74 MMMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Operating Profit
Highest at LKR 1,069.64 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (LKR MM)
Operating Profit Margin
Highest at 6.36 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at LKR 385.08 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 284.27 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
EPS
Highest at LKR 30.79
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (LKR)
Inventory Turnover Ratio
Highest at 4.16%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at LKR 210.09 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (LKR MM)
Here's what is not working for Diesel & Motor Engineering Plc
Operating Cash Flow
Lowest at LKR -5,911.64 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)
Debt-Equity Ratio
Highest at 198.75 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 8.12% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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