Lanka IOC Plc (LIOC.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 IOC Plc

Vallibel One Plc

LAUGFS Gas PLC

Brown & Co. PLC

The Autodrome Plc

Why is Lanka IOC Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.66%

Healthy long term growth as Operating profit has grown by an annual rate 53.43%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.62

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at LKR 23,488.76 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -23.97% (YoY)

With ROE of 11.61%, it has a attractive valuation with a 0.88 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 6.12%, its profits have fallen by -14.2%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Lanka IOC Plc should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Lanka IOC Plc for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lanka IOC Plc

-100.0%

0.35

18.15%

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)

31.81%

EBIT Growth (5y)

53.43%

EBIT to Interest (avg)

8.62

Debt to EBITDA (avg)

4.75

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

3.23

Tax Ratio

19.58%

Dividend Payout Ratio

25.21%

Pledged Shares

Institutional Holding

ROCE (avg)

37.48%

ROE (avg)

23.66%

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

0.88

EV to EBIT

5.75

EV to EBITDA

5.32

EV to Capital Employed

0.81

EV to Sales

0.17

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

14.15%

ROE (Latest)

11.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 23,488.76 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -23.97% (YoY

NET SALES(Q)

Highest at LKR 76,141.4 MM

OPERATING PROFIT(Q)

Highest at LKR 2,901.48 MM

PRE-TAX PROFIT(Q)

Highest at LKR 4,257.58 MM

NET PROFIT(Q)

Highest at LKR 3,131.55 MM

EPS(Q)

Highest at LKR 5.88

-5What is not working for the Company

ROCE(HY)

Lowest at 12.09%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.36 times

DIVIDEND PER SHARE(HY)

Lowest at LKR 19.89

Here's what is working for Lanka IOC Plc

Operating Cash Flow

Highest at LKR 23,488.76 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 76,141.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 2,901.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Pre-Tax Profit

Highest at LKR 4,257.58 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 3,131.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 5.88

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Raw Material Cost

Fallen by -23.97% (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

Here's what is not working for Lanka IOC Plc

Inventory Turnover Ratio

Lowest at 6.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at LKR 19.89

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (LKR)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)