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

Central Industries Ltd.

Swisstek (Ceylon) Plc

Lanka Tiles PLC

Lanka Ceramic Plc

Lanka Walltile Plc

Why is Lanka Ceramic Plc ?

With ROE of 9.56%, it has a attractive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 13.93%, its profits have risen by 54.7%

Underperformed the market in the last 1 year

The stock has generated a return of 13.93% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 41.16%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lanka Ceramic Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Lanka Ceramic Plc

16.47%

2.42

26.17%

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)

9.42%

EBIT Growth (5y)

36.85%

EBIT to Interest (avg)

1.83

Debt to EBITDA (avg)

9.53

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.20

Tax Ratio

14.51%

Dividend Payout Ratio

44.65%

Pledged Shares

Institutional Holding

ROCE (avg)

1.66%

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

-4.13

EV to EBITDA

-2.53

EV to Capital Employed

-0.13

EV to Sales

-0.59

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

9.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at LKR 200.13 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 17.97 times

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR 96.9 MM

RAW MATERIAL COST(Y)

Grown by 25.49% (YoY

NET SALES(Q)

Lowest at LKR 46.78 MM

NET PROFIT(Q)

Lowest at LKR 19.67 MM

EPS(Q)

Lowest at LKR 3.28

Here's what is working for Lanka Ceramic Plc

Cash and Eqv

Highest at LKR 200.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 17.97 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Lanka Ceramic Plc

Operating Cash Flow

Lowest at LKR 96.9 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Net Sales

Lowest at LKR 46.78 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Net Sales

At LKR 46.78 MM has Fallen at -17.11%

over average net sales of the previous four periods of LKR 56.44 MM

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Net Profit

Lowest at LKR 19.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR 3.28

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Raw Material Cost

Grown by 25.49% (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

Non Operating Income

Highest at LKR 0.89 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income