Dipped Products Plc (DIPD.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

Renuka Foods Plc

Samson International Plc

Richard Pieris & Co. Plc

Dipped Products Plc

BPPL Holdings Ltd.

Why is Dipped Products Plc ?

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at LKR 4,434.65 MM
ROCE(HY) Lowest at 10.57%
DEBT-EQUITY RATIO (HY) Highest at 33.41 %

With ROE of 13.27%, it has a expensive valuation with a 0.96 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 -8.06%, its profits have fallen by -8.2%
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

Even though the market (Sri Lanka CSE All Share) has generated returns of 11.95% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.06% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Dipped Products Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Dipped Products Plc

-8.06%

2.11

27.24%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.08%

EBIT Growth (5y)

-3.48%

EBIT to Interest (avg)

5.79

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.86

Tax Ratio

32.45%

Dividend Payout Ratio

36.21%

Pledged Shares

Institutional Holding

ROCE (avg)

21.18%

ROE (avg)

26.73%

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

0.96

EV to EBIT

7.25

EV to EBITDA

4.74

EV to Capital Employed

0.97

EV to Sales

0.52

PEG Ratio

Dividend Yield

0.36%

ROCE (Latest)

13.33%

ROE (Latest)

13.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.18% (YoY

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 4,434.65 MM

ROCE(HY)

Lowest at 10.57%

DEBT-EQUITY RATIO (HY)

Highest at 33.41 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.45 times

DIVIDEND PER SHARE(HY)

Lowest at LKR 5.52

NET SALES(Q)

Lowest at LKR 18,806.88 MM

NET PROFIT(Q)

Lowest at LKR 658.65 MM

EPS(Q)

Lowest at LKR 1.1

Here's what is working for Dipped Products Plc

Raw Material Cost

Fallen by -2.18% (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

Here's what is not working for Dipped Products Plc

Operating Cash Flow

Lowest at LKR 4,434.65 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Debt-Equity Ratio

Highest at 33.41 % and Grown

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

MOJO 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 18,806.88 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Net Profit

Lowest at LKR 658.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

Net Profit

At LKR 658.65 MM has Fallen at -36.36%

over average net sales of the previous four periods of LKR 1,034.89 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR 1.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Inventory Turnover Ratio

Lowest at 4.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at LKR 5.52

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (LKR)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)