ScoreWhy is L B Finance Plc ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.03%
2
With ROE of 19.70%, it has a attractive valuation with a 1.71 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 86.59%, its profits have risen by 12% ; the PEG ratio of the company is 0.7
- At the current price, the company has a high dividend yield of 0.1
3
Consistent Returns over the last 3 years
- Along with generating 86.59% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- 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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
L B Finance Plc
86.13%
3.80
29.98%
Sri Lanka CSE All Share
60.36%
3.56
17.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.10%
EBIT Growth (5y)
8.36%
EBIT to Interest (avg)
5.69
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
33.82%
Dividend Payout Ratio
33.16%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
53.50%
ROE (avg)
23.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.71
EV to EBIT
3.84
EV to EBITDA
3.66
EV to Capital Employed
2.10
EV to Sales
1.75
PEG Ratio
0.73
Dividend Yield
0.12%
ROCE (Latest)
54.58%
ROE (Latest)
19.70%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -7.41% (YoY
CASH AND EQV(HY)
Highest at LKR 26,593.3 MM
NET SALES(Q)
Highest at LKR 11,708.35 MM
-1What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 88.5 %
Here's what is working for L B Finance Plc
Net Sales
Highest at LKR 11,708.35 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Cash and Eqv
Highest at LKR 26,593.3 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -7.41% (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 270.5 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
Debt-Equity Ratio
Highest at 88.5 %
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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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