ScoreWhy is L B Finance Plc ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.03%
2
Flat results in Jun 26
- OPERATING CASH FLOW(Y) Lowest at LKR -4,726.64 MM
- DEBT-EQUITY RATIO (HY) Highest at 241.76 %
- RAW MATERIAL COST(Y) Grown by 10.89% (YoY)
3
With ROE of 22.61%, it has a very attractive valuation with a 1.55 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 21.28%, its profits have risen by 29% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 0.1
4
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
5
Market Beating performance in long term as well as near term
- Along with generating 21.28% 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
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to L B Finance Plc should be less than 10%
- Overall Portfolio exposure to Capital Markets should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is L B Finance Plc for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
L B Finance Plc
21.28%
4.89
25.58%
Sri Lanka CSE All Share
11.95%
0.72
16.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.30%
EBIT Growth (5y)
17.10%
EBIT to Interest (avg)
5.49
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
31.35%
Dividend Payout Ratio
32.52%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
50.75%
ROE (avg)
23.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
1.55
EV to EBIT
2.75
EV to EBITDA
2.65
EV to Capital Employed
1.66
EV to Sales
1.49
PEG Ratio
0.23
Dividend Yield
0.12%
ROCE (Latest)
60.32%
ROE (Latest)
22.61%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
ROCE(HY)
Highest at 26.13%
NET SALES(Q)
Highest at LKR 19,005.38 MM
PRE-TAX PROFIT(Q)
Highest at LKR 6,152.81 MM
CASH AND EQV(HY)
Highest at LKR 34,502.33 MM
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at LKR -4,726.64 MM
DEBT-EQUITY RATIO
(HY)
Highest at 241.76 %
RAW MATERIAL COST(Y)
Grown by 10.89% (YoY
Here's what is working for L B Finance Plc
Net Sales
Highest at LKR 19,005.38 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (LKR MM)
Pre-Tax Profit
Highest at LKR 6,152.81 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (LKR MM)
Net Sales
At LKR 19,005.38 MM has Grown at 31.76%
over average net sales of the previous four periods of LKR 14,423.87 MMMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Cash and Eqv
Highest at LKR 34,502.33 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at LKR 334.73 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (LKR MM)
Here's what is not working for L B Finance Plc
Operating Cash Flow
Lowest at LKR -4,726.64 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (LKR MM)
Debt-Equity Ratio
Highest at 241.76 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 10.89% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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