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Lankem Ceylon Plc

  • Market Cap: Small Cap
  • Industry: Specialty Chemicals
  • ISIN: LK0115N00002
LKR
45.10
-1.8 (-3.84%)

Feb 23

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

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Lankem Ceylon Plc
Singer Industries (Ceylon) Plc

Why is Lankem Ceylon Plc ?

1
High Debt company with Weak Long Term Fundamental Strength
  • Poor long term growth as Net Sales has grown by an annual rate of 20.14% over the last 5 years
  • High Debt Company with a Debt to Equity ratio (avg) at times
  • The company has been able to generate a Return on Capital Employed (avg) of 14.52% signifying low profitability per unit of total capital (equity and debt)
2
The company has declared Negative results for the last 3 consecutive quarters
  • DEBTORS TURNOVER RATIO(HY) Lowest at 4.07 times
3
Risky -
  • The stock is trading risky as compared to its average historical valuations
  • Over the past year, while the stock has generated a return of 17.21%, its profits have fallen by -66.3%
4
Underperformed the market in the last 1 year
  • The stock has generated a return of 17.21% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 41.16%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Specialty Chemicals)

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

Is Lankem Ceylon Plc for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Lankem Ceylon Plc
17.07%
-0.50
71.55%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
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)
20.14%
EBIT Growth (5y)
24.52%
EBIT to Interest (avg)
1.19
Debt to EBITDA (avg)
6.20
Net Debt to Equity (avg)
4.43
Sales to Capital Employed (avg)
2.10
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
14.52%
ROE (avg)
15.01%
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
Industry P/E
Price to Book Value
NA
EV to EBIT
9.47
EV to EBITDA
7.30
EV to Capital Employed
0.82
EV to Sales
0.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.63%
ROE (Latest)
-13.45%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
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

15What is working for the Company
OPERATING CASH FLOW(Y)

Highest at LKR 249.88 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

PRE-TAX PROFIT(Q)

At LKR 256.58 MM has Grown at 146.09%

RAW MATERIAL COST(Y)

Fallen by -3.78% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 325.7 %

NET PROFIT(Q)

Highest at LKR 40.88 MM

EPS(Q)

Highest at LKR 0.3

-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)

Lowest at 4.07 times

Here's what is working for Lankem Ceylon Plc

Pre-Tax Profit
At LKR 256.58 MM has Grown at 146.09%
over average net sales of the previous four periods of LKR 104.26 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Net Profit
At LKR 40.88 MM has Grown at 126.01%
over average net sales of the previous four periods of LKR -157.17 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (LKR MM)

Operating Cash Flow
Highest at LKR 249.88 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Net Profit
Highest at LKR 40.88 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS
Highest at LKR 0.3
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Debt-Equity Ratio
Lowest at 325.7 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost
Fallen by -3.78% (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 Lankem Ceylon Plc

Debtors Turnover Ratio
Lowest at 4.07 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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