Lanka Ceramic Plc (CERA.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

Royal Ceramics Lanka Plc

Swisstek (Ceylon) Plc

Lanka Tiles PLC

Central Industries Ltd.

Lanka Ceramic Plc

Lanka Walltile Plc

Why is Lanka Ceramic Plc ?

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at LKR 89.27 MM
ROCE(HY) Lowest at 7.84%
RAW MATERIAL COST(Y) Grown by 68.04% (YoY)

With ROE of 6.92%, it has a very attractive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 5.84%, its profits have fallen by -23.7%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lanka Ceramic Plc should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Lanka Ceramic Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Lanka Ceramic Plc

5.84%

2.41

29.05%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.44%

EBIT Growth (5y)

31.65%

EBIT to Interest (avg)

6.09

Debt to EBITDA (avg)

1.58

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.20

Tax Ratio

31.64%

Dividend Payout Ratio

42.13%

Pledged Shares

Institutional Holding

ROCE (avg)

2.04%

ROE (avg)

4.44%

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

EV to EBIT

-6.50

EV to EBITDA

-3.34

EV to Capital Employed

-0.12

EV to Sales

-0.60

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

6.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 182.89%

CASH AND EQV(HY)

Highest at LKR 240.77 MM

DEBT-EQUITY RATIO (HY)

Lowest at -10.79 %

INVENTORY TURNOVER RATIO(HY)

Highest at 22.1 times

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 89.27 MM

ROCE(HY)

Lowest at 7.84%

RAW MATERIAL COST(Y)

Grown by 68.04% (YoY

OPERATING PROFIT(Q)

Lowest at LKR -7.79 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -13.31 %

PRE-TAX PROFIT(Q)

Lowest at LKR 17.84 MM

NET PROFIT(Q)

Lowest at LKR 11.56 MM

Here's what is working for Lanka Ceramic Plc

Cash and Eqv

Highest at LKR 240.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -10.79 %

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 22.1 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 182.89%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Lanka Ceramic Plc

Operating Cash Flow

Lowest at LKR 89.27 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Net Profit

At LKR 11.56 MM has Fallen at -55.11%

over average net sales of the previous four periods of LKR 25.76 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Operating Profit

Lowest at LKR -7.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (LKR MM)

Operating Profit Margin

Lowest at -13.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at LKR 17.84 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Pre-Tax Profit

At LKR 17.84 MM has Fallen at -40.7%

over average net sales of the previous four periods of LKR 30.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

Lowest at LKR 11.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

Raw Material Cost

Grown by 68.04% (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