Lanka Ashok Leyland Plc (ASHO.N0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

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 Profit of 90.67%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 10 consecutive quarters
OPERATING CASH FLOW(Y) Highest at LKR 3,706.03 MM
ROCE(HY) Highest at 40.79%
INTEREST COVERAGE RATIO(Q) Highest at 73,752.31

With ROE of 31.88%, it has a very attractive valuation with a 1.45 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 100.20%, its profits have risen by 117.7% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0.6

Market Beating Performance

The stock has generated a return of 100.20% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 32.72%

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

100.2%

4.94

59.88%

Sri Lanka CSE All Share

32.72%

1.90

17.20%

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

1.45

EV to EBIT

2.28

EV to EBITDA

2.11

EV to Capital Employed

1.77

EV to Sales

0.50

PEG Ratio

0.04

Dividend Yield

0.64%

ROCE (Latest)

77.87%

ROE (Latest)

31.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 3,706.03 MM

ROCE(HY)

Highest at 40.79%

INTEREST COVERAGE RATIO(Q)

Highest at 73,752.31

CASH AND EQV(HY)

Highest at LKR 7,703.93 MM

DIVIDEND PER SHARE(HY)

Highest at LKR 10.69

NET SALES(Q)

Highest at LKR 7,112.93 MM

OPERATING PROFIT(Q)

Highest at LKR 1,785.72 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.11 %

PRE-TAX PROFIT(Q)

Highest at LKR 1,695.72 MM

NET PROFIT(Q)

Highest at LKR 1,177.64 MM

EPS(Q)

Highest at LKR 325.24

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 12.05% (YoY

INTEREST(Q)

Highest at LKR 2.42 MM

Here's what is working for Lanka Ashok Leyland Plc

Interest Coverage Ratio

Highest at 73,752.31

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 3,706.03 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Net Sales

Highest at LKR 7,112.93 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Net Sales

At LKR 7,112.93 MM has Grown at 87.24%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 1,785.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 25.11 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at LKR 1,695.72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Pre-Tax Profit

At LKR 1,695.72 MM has Grown at 89.67%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 1,177.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

Net Profit

At LKR 1,177.64 MM has Grown at 90.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 325.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 7,703.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at LKR 10.69

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Depreciation

At LKR 89.52 MM has Grown at 26.2%

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 Lanka Ashok Leyland Plc

Interest

At LKR 2.42 MM has Grown at 42.89%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Interest

Highest at LKR 2.42 MM

in the last five periods and Increased by 42.89% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Raw Material Cost

Grown by 12.05% (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