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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kotagala Plantations Plc

Why is Kotagala Plantations Plc ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of 15.68% 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 9.10%, its profits have risen by 179.9% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 9.10% 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 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, Low Return

Absolute

Risk Adjusted

Volatility

Kotagala Plantations Plc

12.95%

1.13

42.70%

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)

15.68%

EBIT Growth (5y)

20.96%

EBIT to Interest (avg)

1.01

Debt to EBITDA (avg)

5.31

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

1.42

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

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

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

19What is working for the Company

PRE-TAX PROFIT(Q)

At LKR 107.81 MM has Grown at 1,149.74%

NET PROFIT(Q)

At LKR 40.26 MM has Grown at 288.59%

RAW MATERIAL COST(Y)

Fallen by -27.84% (YoY

CASH AND EQV(HY)

Highest at LKR 410.98 MM

DEBT-EQUITY RATIO (HY)

Lowest at 94.56 %

DEBTORS TURNOVER RATIO(HY)

Highest at 32.11%

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 458.94 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.01%

INTEREST(Q)

Highest at LKR 115.34 MM

Here's what is working for Kotagala Plantations Plc

Pre-Tax Profit

At LKR 107.81 MM has Grown at 1,149.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 40.26 MM has Grown at 288.59%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (LKR MM)

Cash and Eqv

Highest at LKR 410.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 94.56 %

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 32.11%

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 -27.84% (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 101.43 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 101.43 MM has Grown at 40.79%

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 Kotagala Plantations Plc

Operating Cash Flow

Lowest at LKR 458.94 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Interest

At LKR 115.34 MM has Grown at 19.35%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Interest

Highest at LKR 115.34 MM

in the last five periods and Increased by 19.35% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Inventory Turnover Ratio

Lowest at 8.01%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio