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 21.38%
3
Flat results in Dec 25
- INTEREST(Q) At LKR 137.52 MM has Grown at 19.28%
- RAW MATERIAL COST(Y) Grown by 7.51% (YoY)
4
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 86.90%, its profits have fallen by -24.8%
5
Market Beating Performance
- The stock has generated a return of 86.90% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 41.16%
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
87.72%
5.31
33.17%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.38%
EBIT Growth (5y)
48.14%
EBIT to Interest (avg)
0.94
Debt to EBITDA (avg)
4.39
Net Debt to Equity (avg)
0.14
Sales to Capital Employed (avg)
0.54
Tax Ratio
43.12%
Dividend Payout Ratio
25.06%
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
Bullish
Mildly Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
NET PROFIT(HY)
Higher at LKR 1,590.95 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 13.01 %
CASH AND EQV(HY)
Highest at LKR 1,399.73 MM
-5What is not working for the Company
INTEREST(Q)
At LKR 137.52 MM has Grown at 19.28%
RAW MATERIAL COST(Y)
Grown by 7.51% (YoY
Here's what is working for Lanka Milk Foods (CWE) Plc
Net Profit
Higher at LKR 1,590.95 MM
than preceding 12 month period ended Dec 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (LKR MM)
Net Profit
At LKR 1,590.95 MM has Grown at 90.18%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
Debt-Equity Ratio
Lowest at 13.01 % 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
Cash and Eqv
Highest at LKR 1,399.73 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at LKR 148.57 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (LKR MM)
Depreciation
At LKR 148.57 MM has Grown at 492.03%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (LKR MM)
Here's what is not working for Lanka Milk Foods (CWE) Plc
Interest
At LKR 137.52 MM has Grown at 19.28%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Raw Material Cost
Grown by 7.51% (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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