Kegalle Plantations PLC (KGAL.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

Bairaha Farms Plc

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Namunukula Plantations PLC

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Maskeliya Plantations Plc

Kahawatte Plantations Plc

Balangoda Plantations Plc

Kegalle Plantations PLC

Malwatte Valley Plantations Plc

Browns Investments Plc

Hapugastenne Plantations Plc

Why is Kegalle Plantations PLC ?

Poor Management Efficiency with a low ROCE of 7.89%

The company has been able to generate a Return on Capital Employed (avg) of 7.89% signifying low profitability per unit of total capital (equity and debt)
DEBTORS TURNOVER RATIO(HY) Lowest at 3.32 times
INTEREST COVERAGE RATIO(Q) Lowest at 223.15
RAW MATERIAL COST(Y) Grown by 63.62% (YoY)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.10% 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 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 Other Agricultural Products)

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

Is Kegalle Plantations PLC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kegalle Plantations PLC

-1.1%

0.49

37.31%

Sri Lanka CSE All Share

42.22%

2.51

16.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.52%

EBIT Growth (5y)

30.24%

EBIT to Interest (avg)

2.55

Debt to EBITDA (avg)

1.13

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.64

Tax Ratio

5.05%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.89%

ROE (avg)

10.06%

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

0.67

EV to EBIT

8.83

EV to EBITDA

5.97

EV to Capital Employed

0.69

EV to Sales

1.03

PEG Ratio

0.03

Dividend Yield

0.07%

ROCE (Latest)

7.85%

ROE (Latest)

6.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 813.75 MM

DEBT-EQUITY RATIO (HY)

Lowest at 24.44 %

-11What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.32 times

INTEREST COVERAGE RATIO(Q)

Lowest at 223.15

RAW MATERIAL COST(Y)

Grown by 63.62% (YoY

CASH AND EQV(HY)

Lowest at LKR 188.66 MM

NET SALES(Q)

Lowest at LKR 813.03 MM

PRE-TAX PROFIT(Q)

Lowest at LKR 37.97 MM

Here's what is working for Kegalle Plantations PLC

Operating Cash Flow

Highest at LKR 813.75 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)

Debt-Equity Ratio

Lowest at 24.44 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Kegalle Plantations PLC

Pre-Tax Profit

At LKR 37.97 MM has Fallen at -81.37%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Interest Coverage Ratio

Lowest at 223.15

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 3.32 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at LKR 813.03 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Pre-Tax Profit

Lowest at LKR 37.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Cash and Eqv

Lowest at LKR 188.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 63.62% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at LKR 1.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income