ScoreWhy is Diesel & Motor Engineering Plc ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 22.93% 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
Poor long term growth as Net Sales has grown by an annual rate of 22.93% over the last 5 years
3
With a growth in Operating Profit of 8.83%, the company declared Very Positive results in Dec 25
- PRE-TAX PROFIT(Q) At LKR 559.79 MM has Grown at 760.25%
- NET PROFIT(Q) At LKR 321.33 MM has Grown at 899.44%
- DEBTORS TURNOVER RATIO(HY) Highest at 4.7 times
4
With ROE of -3.90%, it has a risky valuation with a 1.46 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 76.10%, its profits have fallen by -105.3%
5
Market Beating Performance
- The stock has generated a return of 76.10% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 41.16%
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%
3.14
55.38%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.93%
EBIT Growth (5y)
9.83%
EBIT to Interest (avg)
1.01
Debt to EBITDA (avg)
7.74
Net Debt to Equity (avg)
1.67
Sales to Capital Employed (avg)
1.15
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
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend28What is working for the Company
PRE-TAX PROFIT(Q)
At LKR 559.79 MM has Grown at 760.25%
NET PROFIT(Q)
At LKR 321.33 MM has Grown at 899.44%
DEBTORS TURNOVER RATIO(HY)
Highest at 4.7 times
NET SALES(Q)
Highest at LKR 29,205.74 MM
OPERATING PROFIT(Q)
Highest at LKR 1,643.42 MM
-8What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at LKR -13,998.58 MM
RAW MATERIAL COST(Y)
Grown by 20.39% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 282.27 %
INTEREST(Q)
Highest at LKR 1,014.76 MM
Here's what is working for Diesel & Motor Engineering Plc
Pre-Tax Profit
At LKR 559.79 MM has Grown at 760.25%
over average net sales of the previous four periods of LKR -84.78 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (LKR MM)
Net Profit
At LKR 321.33 MM has Grown at 899.44%
over average net sales of the previous four periods of LKR -40.19 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (LKR MM)
Net Sales
At LKR 29,205.74 MM has Grown at 60.8%
over average net sales of the previous four periods of LKR 18,162.58 MMMOJO Watch
Near term sales trend is very positive
Net Sales (LKR MM)
Net Sales
Highest at LKR 29,205.74 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Operating Profit
Highest at LKR 1,643.42 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (LKR MM)
Debtors Turnover Ratio
Highest at 4.7 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at LKR 252.35 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 252.35 MM has Grown at 27.67%
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 Diesel & Motor Engineering Plc
Interest
At LKR 1,014.76 MM has Grown at 22.9%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Operating Cash Flow
Lowest at LKR -13,998.58 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (LKR MM)
Interest
Highest at LKR 1,014.76 MM
in the last five periods and Increased by 22.9% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Debt-Equity Ratio
Highest at 282.27 %
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 20.39% (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
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
