ScoreWhy is Dilmah Ceylon Tea Co. Plc ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.12
2
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at LKR 3,604.21 MM
- NET PROFIT(HY) Higher at LKR 797.56 MM
- ROCE(HY) Highest at 7.09%
3
With ROE of 8.82%, it has a very attractive valuation with a 1.28 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 25.90%, its profits have risen by 913.1% ; the PEG ratio of the company is 0
4
Market Beating Performance
- The stock has generated a return of 25.90% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 11.95%
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Dilmah Ceylon Tea Co. 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 Dilmah Ceylon Tea Co. Plc for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Dilmah Ceylon Tea Co. Plc
25.9%
0.94
52.18%
Sri Lanka CSE All Share
11.95%
0.72
16.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.46%
EBIT Growth (5y)
4.00%
EBIT to Interest (avg)
8.39
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
0.87
Tax Ratio
30.01%
Dividend Payout Ratio
27.39%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.16%
ROE (avg)
14.42%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.28
EV to EBIT
33.09
EV to EBITDA
16.35
EV to Capital Employed
1.30
EV to Sales
1.34
PEG Ratio
0.02
Dividend Yield
0.01%
ROCE (Latest)
3.93%
ROE (Latest)
8.82%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 3,604.21 MM
NET PROFIT(HY)
Higher at LKR 797.56 MM
ROCE(HY)
Highest at 7.09%
RAW MATERIAL COST(Y)
Fallen by -3.9% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -31.06 %
NET SALES(Q)
Highest at LKR 6,335.26 MM
-14What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 347.81
CASH AND EQV(HY)
Lowest at LKR 10,817.56 MM
OPERATING PROFIT(Q)
Lowest at LKR 128.23 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 2.02 %
PRE-TAX PROFIT(Q)
Lowest at LKR 392.16 MM
NET PROFIT(Q)
Lowest at LKR -90.5 MM
EPS(Q)
Lowest at LKR -4.36
Here's what is working for Dilmah Ceylon Tea Co. Plc
Operating Cash Flow
Highest at LKR 3,604.21 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Net Sales
Highest at LKR 6,335.26 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Debt-Equity Ratio
Lowest at -31.06 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -3.9% (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
Depreciation
Highest at LKR 246.09 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 Dilmah Ceylon Tea Co. Plc
Net Profit
At LKR -90.5 MM has Fallen at -122.83%
over average net sales of the previous four periods of LKR 396.44 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (LKR MM)
Interest Coverage Ratio
Lowest at 347.81
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at LKR 128.23 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (LKR MM)
Operating Profit Margin
Lowest at 2.02 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at LKR 392.16 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (LKR MM)
Pre-Tax Profit
At LKR 392.16 MM has Fallen at -38.59%
over average net sales of the previous four periods of LKR 638.61 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (LKR MM)
Net Profit
Lowest at LKR -90.5 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (LKR MM)
EPS
Lowest at LKR -4.36
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (LKR)
Cash and Eqv
Lowest at LKR 10,817.56 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income
Highest at LKR 1.39 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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