Lanka Walltile Plc (LWL.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

Royal Ceramics Lanka Plc

Swisstek (Ceylon) Plc

Lanka Tiles PLC

Central Industries Ltd.

Lanka Ceramic Plc

Lanka Walltile Plc

Why is Lanka Walltile Plc ?

Flat results in Dec 25

ROCE(HY) Lowest at 3.39%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
INVENTORY TURNOVER RATIO(HY) Lowest at 1.5 times

With ROE of 7.09%, it has a very expensive valuation with a 0.58 Price to Book Value

Over the past year, while the stock has generated a return of -16.47%, its profits have fallen by -20.4%
At the current price, the company has a high dividend yield of 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.47% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lanka Walltile Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lanka Walltile Plc

-16.47%

-0.71

26.92%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.65%

EBIT Growth (5y)

0.68%

EBIT to Interest (avg)

5.12

Debt to EBITDA (avg)

2.08

Net Debt to Equity (avg)

0.90

Sales to Capital Employed (avg)

1.04

Tax Ratio

34.14%

Dividend Payout Ratio

49.61%

Pledged Shares

Institutional Holding

ROCE (avg)

23.67%

ROE (avg)

22.94%

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

0.58

EV to EBIT

8.96

EV to EBITDA

6.85

EV to Capital Employed

0.78

EV to Sales

0.76

PEG Ratio

Dividend Yield

ROCE (Latest)

8.72%

ROE (Latest)

7.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -17.97% (YoY

OPERATING PROFIT(Q)

Highest at LKR 1,442.23 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.41 %

PRE-TAX PROFIT(Q)

Highest at LKR 953.43 MM

NET PROFIT(Q)

Highest at LKR 425.67 MM

EPS(Q)

Highest at LKR 1.56

-5What is not working for the Company

ROCE(HY)

Lowest at 3.39%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.5 times

DIVIDEND PER SHARE(HY)

Lowest at LKR 5.24

Here's what is working for Lanka Walltile Plc

Net Profit

At LKR 425.67 MM has Grown at 162.3%

over average net sales of the previous four periods of LKR 162.28 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (LKR MM)

Operating Profit

Highest at LKR 1,442.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 12.41 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at LKR 953.43 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Pre-Tax Profit

At LKR 953.43 MM has Grown at 82.11%

over average net sales of the previous four periods of LKR 523.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 425.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 1.56

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Raw Material Cost

Fallen by -17.97% (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 Walltile Plc

Inventory Turnover Ratio

Lowest at 1.5 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 5.24

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 (%)