Kotagala Plantations Plc (KOTA.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

Kotagala Plantations Plc

Why is Kotagala Plantations Plc ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 11.31%

Poor long term growth as Net Sales has grown by an annual rate of 14.27% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With ROE of 12.11%, it has a very expensive valuation with a 1.64 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.15%, its profits have risen by 179.9% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -4.15% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

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 Paper, Forest & Jute Products)

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

Is Kotagala Plantations Plc for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Kotagala Plantations Plc

-2.13%

1.11

39.44%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.27%

EBIT Growth (5y)

23.66%

EBIT to Interest (avg)

1.01

Debt to EBITDA (avg)

5.31

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

1.41

Tax Ratio

32.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.31%

ROE (avg)

11.36%

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

1.64

EV to EBIT

10.37

EV to EBITDA

6.28

EV to Capital Employed

1.48

EV to Sales

0.92

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

14.23%

ROE (Latest)

12.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.72% (YoY

CASH AND EQV(HY)

Highest at LKR 458.35 MM

DEBT-EQUITY RATIO (HY)

Lowest at 54.66 %

DEBTORS TURNOVER RATIO(HY)

Highest at 16.23 times

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -53.09 MM

NET SALES(Q)

Lowest at LKR 1,293.11 MM

Here's what is working for Kotagala Plantations Plc

Cash and Eqv

Highest at LKR 458.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 54.66 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 16.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.72% (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 Kotagala Plantations Plc

Operating Cash Flow

Lowest at LKR -53.09 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Net Sales

Lowest at LKR 1,293.11 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)