E-Channelling Plc (ECL.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

E-Channelling Plc

Why is E-Channelling Plc ?

With a growth in Net Profit of 77.81%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at LKR 158.35 MM
RAW MATERIAL COST(Y) Fallen by -4.71% (YoY)
CASH AND EQV(HY) Highest at LKR 891.01 MM

With ROE of 8.05%, it has a very expensive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 27.05%, its profits have risen by 22.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to E-Channelling Plc should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is E-Channelling Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

E-Channelling Plc

27.05%

0.19

55.84%

Sri Lanka CSE All Share

32.72%

1.90

17.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.86%

EBIT Growth (5y)

28.12%

EBIT to Interest (avg)

28.21

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.68

Sales to Capital Employed (avg)

0.55

Tax Ratio

28.83%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

30.66%

ROE (avg)

11.84%

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

EV to EBIT

-12.87

EV to EBITDA

-9.47

EV to Capital Employed

-2.27

EV to Sales

-1.27

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

8.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 158.35 MM

RAW MATERIAL COST(Y)

Fallen by -4.71% (YoY

CASH AND EQV(HY)

Highest at LKR 891.01 MM

DEBT-EQUITY RATIO (HY)

Lowest at -86.93 %

INVENTORY TURNOVER RATIO(HY)

Highest at 463.16 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.28 times

NET SALES(Q)

Highest at LKR 86.5 MM

OPERATING PROFIT(Q)

Highest at LKR 24.27 MM

OPERATING PROFIT MARGIN(Q)

Highest at 28.05 %

PRE-TAX PROFIT(Q)

Highest at LKR 29.52 MM

NET PROFIT(Q)

Highest at LKR 20.23 MM

EPS(Q)

Highest at LKR 0.17

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for E-Channelling Plc

Operating Cash Flow

Highest at LKR 158.35 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Net Sales

Highest at LKR 86.5 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 24.27 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 28.05 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at LKR 29.52 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Pre-Tax Profit

At LKR 29.52 MM has Grown at 85.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 20.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Net Profit

At LKR 20.23 MM has Grown at 77.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 0.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 891.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -86.93 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 463.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.71% (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