ScoreWhy is Eastern Merchants Plc ?
1
The company has declared Negative results for the last 3 consecutive quarters
- NET SALES(Q) At LKR 633.23 MM has Fallen at -20.02%
- DEBT-EQUITY RATIO (HY) Highest at 21.25 %
2
With ROE of -5.32%, it has a risky valuation with a 0.00 Price to Book Value
- Over the past year, while the stock has generated a return of 93.75%, its profits have fallen by -269.6%
3
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
4
Market Beating Performance
- The stock has generated a return of 93.75% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 41.16%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Eastern Merchants 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 Eastern Merchants Plc for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Eastern Merchants Plc
93.75%
1.65
62.86%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.05%
EBIT Growth (5y)
-161.42%
EBIT to Interest (avg)
-0.11
Debt to EBITDA (avg)
3.32
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
1.16
Tax Ratio
0.04%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.26%
ROE (avg)
9.78%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
Industry P/E
Price to Book Value
NA
EV to EBIT
0.35
EV to EBITDA
0.71
EV to Capital Employed
-0.01
EV to Sales
-0.01
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
-5.32%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
ROCE(HY)
Highest at 0.33%
PRE-TAX PROFIT(Q)
At LKR 2.54 MM has Grown at 118.62%
RAW MATERIAL COST(Y)
Fallen by -101.34% (YoY
NET PROFIT(Q)
At LKR -2.25 MM has Grown at 84.68%
-3What is not working for the Company
NET SALES(Q)
At LKR 633.23 MM has Fallen at -20.02%
DEBT-EQUITY RATIO
(HY)
Highest at 21.25 %
Here's what is working for Eastern Merchants Plc
Pre-Tax Profit
At LKR 2.54 MM has Grown at 118.62%
over average net sales of the previous four periods of LKR -13.65 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (LKR MM)
Net Profit
At LKR -2.25 MM has Grown at 84.68%
over average net sales of the previous four periods of LKR -14.69 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
Raw Material Cost
Fallen by -101.34% (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 Eastern Merchants Plc
Net Sales
At LKR 633.23 MM has Fallen at -20.02%
over average net sales of the previous four periods of LKR 791.76 MMMOJO Watch
Near term sales trend is very negative
Net Sales (LKR MM)
Debt-Equity Ratio
Highest at 21.25 %
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
Non Operating Income
Highest at LKR 7.35 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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