ScoreWhy 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 53.43%
- 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
- INTEREST(Q) At LKR 146.92 MM has Grown at 22.92%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,072.62
- RAW MATERIAL COST(Y) Grown by 24.83% (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 7.26%, 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 7.26% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 41.16%
Real-Time Research ReportHow much should you hold?
- 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%
0.56
18.42%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
Quality
Management Risk
Growth
Capital StructureQuality 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)
3.32
Tax Ratio
19.58%
Dividend Payout Ratio
23.88%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
37.48%
ROE (avg)
23.66%
ValuationValuation Key Factors 
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%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 8.76 times
NET SALES(Q)
Highest at LKR 71,617.27 MM
-7What is not working for the Company
INTEREST(Q)
At LKR 146.92 MM has Grown at 22.92%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,072.62
RAW MATERIAL COST(Y)
Grown by 24.83% (YoY
OPERATING PROFIT(Q)
Lowest at LKR 1,575.91 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 2.2 %
Here's what is working for Lanka IOC Plc
Net Sales
Highest at LKR 71,617.27 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Inventory Turnover Ratio
Highest at 8.76 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at LKR 177.16 MM
in the last five periodsMOJO 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
Interest
At LKR 146.92 MM has Grown at 22.92%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Interest Coverage Ratio
Lowest at 1,072.62
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at LKR 1,575.91 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (LKR MM)
Operating Profit Margin
Lowest at 2.2 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 24.83% (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 0.54 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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