Why is Kelani Cables Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 20.26%
- Healthy long term growth as Operating profit has grown by an annual rate 53.22%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.11
2
Flat results in Jun 25
- INVENTORY TURNOVER RATIO(HY) Lowest at 3.5%
3
With ROE of 16.79%, it has a fair valuation with a 1.77 Price to Book Value
- Over the past year, while the stock has generated a return of 197.41%, its profits have risen by 21.1%
4
Market Beating performance in long term as well as near term
- Along with generating 197.41% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Kelani Cables Ltd. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kelani Cables Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Kelani Cables Ltd.
-100.0%
7.31
41.02%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
Quality key factors
Factor
Value
Sales Growth (5y)
19.03%
EBIT Growth (5y)
53.22%
EBIT to Interest (avg)
10.11
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.54
Sales to Capital Employed (avg)
1.26
Tax Ratio
28.53%
Dividend Payout Ratio
14.21%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
41.83%
ROE (avg)
20.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.77
EV to EBIT
5.96
EV to EBITDA
5.78
EV to Capital Employed
2.61
EV to Sales
0.95
PEG Ratio
NA
Dividend Yield
0.01%
ROCE (Latest)
43.85%
ROE (Latest)
16.79%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Bullish
Bullish
Technical Movement
8What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -3.81% (YoY
CASH AND EQV(HY)
Highest at LKR 14,563.56 MM
OPERATING PROFIT(Q)
Highest at LKR 772.77 MM
PRE-TAX PROFIT(Q)
Highest at LKR 919.27 MM
NET PROFIT(Q)
Highest at LKR 658.53 MM
EPS(Q)
Highest at LKR 30.21
-1What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.5%
Here's what is working for Kelani Cables Ltd.
Operating Profit
Highest at LKR 772.77 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (LKR MM)
Pre-Tax Profit
Highest at LKR 919.27 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (LKR MM)
Net Profit
Highest at LKR 658.53 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
EPS
Highest at LKR 30.21
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (LKR)
Cash and Eqv
Highest at LKR 14,563.56 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -3.81% (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
At LKR 22.29 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 Kelani Cables Ltd.
Inventory Turnover Ratio
Lowest at 3.5%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






