Lanka Ashok Leyland Plc (ASHO.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

Lanka Ashok Leyland Plc

Why is Lanka Ashok Leyland Plc ?

With a growth in Net Sales of 109.12%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Highest at LKR 2,529.94 MM
ROCE(HY) Highest at 37.64%
NET SALES(Q) At LKR 4,470.38 MM has Grown at 109.12%

With ROE of 31.87%, it has a attractive valuation with a 2.13 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 277.32%, its profits have risen by 112.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.5

Market Beating Performance

The stock has generated a return of 277.32% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 41.16%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Lanka Ashok Leyland Plc should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lanka Ashok Leyland Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lanka Ashok Leyland Plc

280.45%

7.38

54.36%

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)

34.97%

EBIT Growth (5y)

73.47%

EBIT to Interest (avg)

59.42

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

1.37

Tax Ratio

30.93%

Dividend Payout Ratio

4.73%

Pledged Shares

Institutional Holding

ROCE (avg)

16.71%

ROE (avg)

11.47%

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

2.13

EV to EBIT

3.62

EV to EBITDA

3.34

EV to Capital Employed

3.19

EV to Sales

0.86

PEG Ratio

0.06

Dividend Yield

0.48%

ROCE (Latest)

88.36%

ROE (Latest)

31.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bearish

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

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 2,529.94 MM

ROCE(HY)

Highest at 37.64%

NET SALES(Q)

At LKR 4,470.38 MM has Grown at 109.12%

INTEREST COVERAGE RATIO(Q)

Highest at 61,457.04

CASH AND EQV(HY)

Highest at LKR 7,089.64 MM

DEBT-EQUITY RATIO (HY)

Lowest at -42.1 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.89 times

DEBTORS TURNOVER RATIO(HY)

Highest at 11.53 times

PRE-TAX PROFIT(Q)

Highest at LKR 1,023.02 MM

NET PROFIT(Q)

Highest at LKR 713.99 MM

EPS(Q)

Highest at LKR 197.19

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 15.36% (YoY

Here's what is working for Lanka Ashok Leyland Plc

Net Sales

At LKR 4,470.38 MM has Grown at 109.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (LKR MM)

Interest Coverage Ratio

Highest at 61,457.04

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at LKR 2,529.94 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Pre-Tax Profit

Highest at LKR 1,023.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 713.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 197.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 7,089.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -42.1 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.89 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 11.53 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Lanka Ashok Leyland Plc

Raw Material Cost

Grown by 15.36% (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