Why is Lanka Ashok Leyland Plc ?
1
With a growth in Net Profit of 396.9%, the company declared Outstanding results in Jun 25
- The company has declared positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at LKR 1,064.79 MM
- NET SALES(Q) At LKR 3,257.25 MM has Grown at 248.79%
- PRE-TAX PROFIT(Q) At LKR 699.4 MM has Grown at 440.53%
2
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 383.88%, 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
3
Market Beating performance in long term as well as near term
- Along with generating 383.88% 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
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
377.99%
7.20
56.53%
Sri Lanka CSE All Share
60.36%
3.56
17.37%
Quality key factors
Factor
Value
Sales Growth (5y)
20.08%
EBIT Growth (5y)
79.93%
EBIT to Interest (avg)
59.42
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
1.24
Tax Ratio
30.93%
Dividend Payout Ratio
4.73%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
16.71%
ROE (avg)
11.47%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
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%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
31What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 1,064.79 MM
NET SALES(Q)
At LKR 3,257.25 MM has Grown at 248.79%
PRE-TAX PROFIT(Q)
At LKR 699.4 MM has Grown at 440.53%
NET PROFIT(Q)
At LKR 487.23 MM has Grown at 396.9%
ROCE(HY)
Highest at 34.25%
RAW MATERIAL COST(Y)
Fallen by -8.23% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 1.58%
DEBTORS TURNOVER RATIO(HY)
Highest at 9.72%
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Lanka Ashok Leyland Plc
Net Sales
At LKR 3,257.25 MM has Grown at 248.79%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely positive
Net Sales (LKR MM)
Pre-Tax Profit
At LKR 699.4 MM has Grown at 440.53%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (LKR MM)
Net Profit
At LKR 487.23 MM has Grown at 396.9%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (LKR MM)
Operating Cash Flow
Highest at LKR 1,064.79 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Inventory Turnover Ratio
Highest at 1.58%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 9.72%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -8.23% (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






