Keells Food Products Plc (KFP.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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Carson Cumberbatch PLC

Renuka Holdings Plc

Renuka Agri Foods Plc

Namunukula Plantations PLC

Keells Food Products Plc

Dilmah Ceylon Tea Co. Plc

Convenience Foods (Lanka) Plc

Kotmale Holdings Plc

Harischandra Mills Plc

Malwatte Valley Plantations Plc

Why is Keells Food Products Plc ?

The company has declared Positive results for the last 4 consecutive quarters

NET PROFIT(HY) Higher at LKR 86.88 MM
ROCE(HY) Highest at 7.84%
DIVIDEND PAYOUT RATIO(Y) Highest at 50.39%

With ROE of 7.65%, it has a very attractive valuation with a 2.20 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 -2.43%, its profits have risen by 219.1% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.43% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Keells Food Products Plc should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Keells Food Products Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Keells Food Products Plc

-2.43%

0.44

31.01%

Sri Lanka CSE All Share

61.92%

3.56

17.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.13%

EBIT Growth (5y)

13.95%

EBIT to Interest (avg)

15.25

Debt to EBITDA (avg)

1.44

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

2.09

Tax Ratio

25.43%

Dividend Payout Ratio

68.94%

Pledged Shares

Institutional Holding

ROCE (avg)

13.37%

ROE (avg)

7.58%

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

2.20

EV to EBIT

10.27

EV to EBITDA

7.23

EV to Capital Employed

1.82

EV to Sales

0.74

PEG Ratio

0.13

Dividend Yield

0.24%

ROCE (Latest)

17.73%

ROE (Latest)

7.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

20What is working for the Company

NET PROFIT(HY)

Higher at LKR 86.88 MM

ROCE(HY)

Highest at 7.84%

DIVIDEND PAYOUT RATIO(Y)

Highest at 50.39%

RAW MATERIAL COST(Y)

Fallen by -6.34% (YoY

CASH AND EQV(HY)

Highest at LKR 203.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at 46.71 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.57%

DIVIDEND PER SHARE(HY)

Highest at LKR 6.25

NET SALES(Q)

Highest at LKR 1,922.35 MM

-2What is not working for the Company

PRE-TAX PROFIT(Q)

At LKR 26.57 MM has Fallen at -40.49%

NET PROFIT(Q)

At LKR 18.73 MM has Fallen at -43.75%

Here's what is working for Keells Food Products Plc

Net Sales

Highest at LKR 1,922.35 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Cash and Eqv

Highest at LKR 203.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 46.71 %

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 5.57%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at LKR 6.25

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Dividend Payout Ratio

Highest at 50.39%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -6.34% (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

Depreciation

Highest at LKR 54.45 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Here's what is not working for Keells Food Products Plc

Pre-Tax Profit

At LKR 26.57 MM has Fallen at -40.49%

over average net sales of the previous four periods of LKR 44.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 18.73 MM has Fallen at -43.75%

over average net sales of the previous four periods of LKR 33.29 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)