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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bairaha Farms Plc

Namunukula Plantations PLC

Ceylon Grain Elevators Plc

Kelani Valley Plantations Plc

Kegalle Plantations PLC

Browns Investments Plc

Maskeliya Plantations Plc

Malwatte Valley Plantations Plc

Balangoda Plantations Plc

Kahawatte Plantations 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)

Flat results in Jun 25

DEBTORS TURNOVER RATIO(HY) Lowest at 3.72%
INTEREST(Q) At LKR 45.99 MM has Grown at 162.48%
RAW MATERIAL COST(Y) Grown by 36.85% (YoY)

Underperformed the market in the last 1 year

The stock has generated a return of 8.66% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 61.92%

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kegalle Plantations PLC

8.88%

0.57

36.67%

Sri Lanka CSE All Share

60.36%

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)

11.03%

EBIT Growth (5y)

74.54%

EBIT to Interest (avg)

2.55

Debt to EBITDA (avg)

1.13

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.65

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 1,087.35 MM

NET PROFIT(HY)

Higher at LKR 40.54 MM

ROCE(HY)

Highest at 7.93%

INVENTORY TURNOVER RATIO(HY)

Highest at 6.47%

-8What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.72%

INTEREST(Q)

At LKR 45.99 MM has Grown at 162.48%

RAW MATERIAL COST(Y)

Grown by 36.85% (YoY

CASH AND EQV(HY)

Lowest at LKR 349.83 MM

NET SALES(Q)

Lowest at LKR 904.53 MM

NET PROFIT(Q)

Fallen at -46.59%

Here's what is working for Kegalle Plantations PLC

Operating Cash Flow

Highest at LKR 1,087.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Inventory Turnover Ratio

Highest at 6.47%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at LKR 49.86 MM

in the last five periods

MOJO Watch

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

Depreciation (LKR MM)

Depreciation

At LKR 49.86 MM has Grown at inf%

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 Kegalle Plantations PLC

Interest

At LKR 45.99 MM has Grown at 162.48%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debtors Turnover Ratio

Lowest at 3.72% 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 904.53 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Net Profit

Fallen at -46.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

Cash and Eqv

Lowest at LKR 349.83 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 36.85% (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 0.78 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income