Why is Dipped Products Plc ?
1
High Management Efficiency with a high ROE of 26.73%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.88
3
Healthy long term growth as Net Sales has grown by an annual rate of 15.68% and Operating profit at 4.39%
4
Flat results in Dec 25
- DEBT-EQUITY RATIO (HY) Highest at 21.28 %
5
With ROE of 16.05%, it has a very attractive valuation with a 1.23 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 -3.18%, its profits have fallen by -9.2%
- At the current price, the company has a high dividend yield of 0.6
6
Below par performance in long term as well as near term
- Along with generating -3.18% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Dipped Products Plc should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Dipped Products Plc for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Dipped Products Plc
-3.34%
1.89
33.41%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
Quality key factors
Factor
Value
Sales Growth (5y)
15.68%
EBIT Growth (5y)
4.39%
EBIT to Interest (avg)
6.88
Debt to EBITDA (avg)
0.33
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
1.91
Tax Ratio
26.39%
Dividend Payout Ratio
29.35%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
24.82%
ROE (avg)
26.73%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.23
EV to EBIT
7.04
EV to EBITDA
5.07
EV to Capital Employed
1.21
EV to Sales
0.53
PEG Ratio
NA
Dividend Yield
0.59%
ROCE (Latest)
17.24%
ROE (Latest)
16.05%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Movement
1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -16.87% (YoY
-2What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 21.28 %
Here's what is working for Dipped Products Plc
Raw Material Cost
Fallen by -16.87% (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 971.12 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 971.12 MM has Grown at 54.72%
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 Dipped Products Plc
Debt-Equity Ratio
Highest at 21.28 % 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






