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
Poor long term growth as Operating profit has grown by an annual rate -10.23% of over the last 5 years
3
Flat results in Jun 25
- DEBT-EQUITY RATIO (HY) Highest at -5.14 %
- INTEREST COVERAGE RATIO(Q) Lowest at 750.2
- RAW MATERIAL COST(Y) Grown by 6.13% (YoY)
4
With ROE of 4.85%, it has a fair valuation with a 1.02 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 14.84%, its profits have fallen by -15.9%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 14.84% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 61.92%
Real-Time Research ReportHow much should you hold?
- 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?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Dilmah Ceylon Tea Co. Plc
14.84%
1.01
23.71%
Sri Lanka CSE All Share
60.36%
3.56
17.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.02%
EBIT Growth (5y)
-10.23%
EBIT to Interest (avg)
8.12
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
0.86
Tax Ratio
25.43%
Dividend Payout Ratio
57.14%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.44%
ROE (avg)
14.42%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
1.02
EV to EBIT
26.12
EV to EBITDA
13.51
EV to Capital Employed
1.02
EV to Sales
1.03
PEG Ratio
NA
Dividend Yield
0.01%
ROCE (Latest)
3.89%
ROE (Latest)
4.85%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
NET PROFIT(HY)
Higher at LKR 863.1 MM
-9What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -5.14 %
INTEREST COVERAGE RATIO(Q)
Lowest at 750.2
RAW MATERIAL COST(Y)
Grown by 6.13% (YoY
NET SALES(Q)
Lowest at LKR 4,014.1 MM
OPERATING PROFIT(Q)
Lowest at LKR 276.58 MM
Here's what is working for Dilmah Ceylon Tea Co. Plc
Net Profit
At LKR 863.1 MM has Grown at 2,108.15%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (LKR MM)
Net Profit
Higher at LKR 863.1 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (LKR MM)
Depreciation
Highest at LKR 225.78 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 Sales
At LKR 4,014.1 MM has Fallen at -24.11%
over average net sales of the previous four periods of LKR 5,289.48 MMMOJO Watch
Near term sales trend is very negative
Net Sales (LKR MM)
Interest Coverage Ratio
Lowest at 750.2
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at -5.14 % and Grown
In each half year 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
Net Sales
Lowest at LKR 4,014.1 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (LKR MM)
Operating Profit
Lowest at LKR 276.58 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (LKR MM)
Raw Material Cost
Grown by 6.13% (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
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