Lankem Developments Plc (LDEV.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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lankem Developments Plc

Why is Lankem Developments Plc ?

With a fall in Net Sales of -5.57%, the company declared Very Negative results in Mar 25

The company has declared negative results in Jan 70 after 2 consecutive negative quarters
INVENTORY TURNOVER RATIO(HY) Lowest at 5.71%
RAW MATERIAL COST(Y) Grown by 46.92% (YoY)
NET SALES(Q) Lowest at LKR 1,652.96 MM

With ROE of 15.24%, it has a expensive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 12.42%, its profits have fallen by -35.3%

Underperformed the market in the last 1 year

The stock has generated a return of 12.42% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 60.36%

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 FMCG)

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

Is Lankem Developments Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lankem Developments Plc

-100.0%

0.99

43.64%

Sri Lanka CSE All Share

60.36%

3.50

17.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.05%

EBIT Growth (5y)

24.70%

EBIT to Interest (avg)

5.11

Debt to EBITDA (avg)

5.59

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

2.36

Tax Ratio

37.00%

Dividend Payout Ratio

33.48%

Pledged Shares

Institutional Holding

ROCE (avg)

26.86%

ROE (avg)

37.11%

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

EV to EBIT

0.62

EV to EBITDA

0.47

EV to Capital Employed

0.15

EV to Sales

0.05

PEG Ratio

Dividend Yield

ROCE (Latest)

24.37%

ROE (Latest)

15.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Bullish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 804.48 MM

NET PROFIT(HY)

At LKR 9.17 MM has Grown at 134.53%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PER SHARE(HY)

Highest at LKR 8.68

-15What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.71%

RAW MATERIAL COST(Y)

Grown by 46.92% (YoY

NET SALES(Q)

Lowest at LKR 1,652.96 MM

OPERATING PROFIT(Q)

Lowest at LKR 66.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.05 %

PRE-TAX PROFIT(Q)

Lowest at LKR 81.28 MM

NET PROFIT(Q)

Lowest at LKR -24 MM

EPS(Q)

Lowest at LKR -0.93

Here's what is working for Lankem Developments Plc

Operating Cash Flow

Highest at LKR 804.48 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Dividend per share

Highest at LKR 8.68

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Here's what is not working for Lankem Developments Plc

Pre-Tax Profit

At LKR 81.28 MM has Fallen at -71.59%

over average net sales of the previous four periods of LKR 286.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR -24 MM has Fallen at -124.66%

over average net sales of the previous four periods of LKR 97.35 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Inventory Turnover Ratio

Lowest at 5.71% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at LKR 1,652.96 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Operating Profit

Lowest at LKR 66.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (LKR MM)

Operating Profit Margin

Lowest at 4.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at LKR 81.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

Lowest at LKR -24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR -0.93

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Raw Material Cost

Grown by 46.92% (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 0.21 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income