ScoreWhy is Lanka Milk Foods (CWE) Plc ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Healthy long term growth as Net Sales has grown by an annual rate of 21.96%
- OPERATING CASH FLOW(Y) Highest at LKR 1,891.99 MM
- NET PROFIT(HY) At LKR 748.75 MM has Grown at 103.7%
- DEBT-EQUITY RATIO (HY) Lowest at 16.56 %
3
With ROE of 4.86%, it has a fair valuation with a 0.82 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 86.15%, its profits have fallen by -24.8%
4
Market Beating Performance
- The stock has generated a return of 86.15% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 60.36%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Lanka Milk Foods (CWE) Plc should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lanka Milk Foods (CWE) Plc for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Lanka Milk Foods (CWE) Plc
-100.0%
3.25
35.90%
Sri Lanka CSE All Share
60.36%
3.50
17.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.96%
EBIT Growth (5y)
80.38%
EBIT to Interest (avg)
0.94
Debt to EBITDA (avg)
4.39
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
0.57
Tax Ratio
43.12%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.48%
ROE (avg)
7.89%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
0.82
EV to EBIT
24.66
EV to EBITDA
18.64
EV to Capital Employed
0.83
EV to Sales
1.63
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.39%
ROE (Latest)
4.86%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 1,891.99 MM
NET PROFIT(HY)
At LKR 748.75 MM has Grown at 103.7%
DEBT-EQUITY RATIO
(HY)
Lowest at 16.56 %
OPERATING PROFIT(Q)
Highest at LKR 488.54 MM
OPERATING PROFIT MARGIN(Q)
Highest at 10.46 %
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Lanka Milk Foods (CWE) Plc
Operating Cash Flow
Highest at LKR 1,891.99 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Net Profit
At LKR 748.75 MM has Grown at 103.7%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
Debt-Equity Ratio
Lowest at 16.56 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Profit
Highest at LKR 488.54 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (LKR MM)
Operating Profit Margin
Highest at 10.46 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
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