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Lanka IOC Plc

  • Market Cap: Large Cap
  • Industry: Trading & Distributors
  • ISIN: LK0345N00005
LKR
128.50
-9.75 (-7.05%)

Dec 12

COL

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Lanka IOC Plc
Vallibel One Plc
Brown & Co. PLC
LAUGFS Gas PLC
The Autodrome Plc
Why is Lanka IOC Plc ?
1
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 51.02%
  • Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.62
2
The company has declared Negative results for the last 3 consecutive quarters
  • OPERATING CASH FLOW(Y) Lowest at LKR 13,785.02 MM
  • ROCE(HY) Lowest at 12.15%
  • RAW MATERIAL COST(Y) Grown by 9.5% (YoY)
3
With ROE of 11.87%, it has a expensive valuation with a 0.84 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 10.30%, its profits have fallen by -20.5%
  • At the current price, the company has a high dividend yield of 0.1
4
Underperformed the market in the last 1 year
  • The stock has generated a return of 10.30% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 60.36%
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to Lanka IOC Plc should be less than 10%
  2. 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%
-0.06
24.07%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
29.71%
EBIT Growth (5y)
51.02%
EBIT to Interest (avg)
8.62
Debt to EBITDA (avg)
4.75
Net Debt to Equity (avg)
-0.29
Sales to Capital Employed (avg)
3.49
Tax Ratio
19.58%
Dividend Payout Ratio
23.88%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
37.48%
ROE (avg)
23.66%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
0.84
EV to EBIT
4.51
EV to EBITDA
4.18
EV to Capital Employed
0.72
EV to Sales
0.14
PEG Ratio
NA
Dividend Yield
0.07%
ROCE (Latest)
16.07%
ROE (Latest)
11.87%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company
INTEREST COVERAGE RATIO(Q)

Highest at 1,758.53

-8What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at LKR 13,785.02 MM

ROCE(HY)

Lowest at 12.15%

RAW MATERIAL COST(Y)

Grown by 9.5% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -27.29 %

NET PROFIT(Q)

Fallen at -38.48%

Here's what is working for Lanka IOC Plc
Interest Coverage Ratio
Highest at 1,758.53
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Depreciation
Highest at LKR 160.59 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Here's what is not working for Lanka IOC Plc
Operating Cash Flow
Lowest at LKR 13,785.02 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
Fallen at -38.48%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is negative

Net Profit (LKR MM)

Debt-Equity Ratio
Highest at -27.29 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost
Grown by 9.5% (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

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