ScoreWhy is Lankem Developments Plc ?
1
With a fall in PBT of -29.03%, the company declared Very Negative results in Dec 25
- The company has declared negative results in Jan 70 after 2 consecutive negative quarters
- NET PROFIT(Q) At LKR 4.51 MM has Fallen at -81.45%
- ROCE(HY) Lowest at -0.88%
- RAW MATERIAL COST(Y) Grown by 19.54% (YoY)
2
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 -0.75%, its profits have fallen by -35.3%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -0.75% 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 ReportHow 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
1.51%
0.83
42.65%
Sri Lanka CSE All Share
41.16%
2.63
15.67%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.17%
EBIT Growth (5y)
55.87%
EBIT to Interest (avg)
5.11
Debt to EBITDA (avg)
5.59
Net Debt to Equity (avg)
0.34
Sales to Capital Employed (avg)
2.25
Tax Ratio
37.00%
Dividend Payout Ratio
33.48%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
26.86%
ROE (avg)
37.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
Industry P/E
Price to Book Value
NA
EV to EBIT
0.62
EV to EBITDA
0.47
EV to Capital Employed
0.15
EV to Sales
0.05
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
24.37%
ROE (Latest)
15.24%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-15What is not working for the Company
NET PROFIT(Q)
At LKR 4.51 MM has Fallen at -81.45%
ROCE(HY)
Lowest at -0.88%
RAW MATERIAL COST(Y)
Grown by 19.54% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.23 times
NET SALES(Q)
Lowest at LKR 1,606.48 MM
Here's what is working for Lankem Developments Plc
Depreciation
Highest at LKR 82.74 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (LKR MM)
Here's what is not working for Lankem Developments Plc
Net Profit
At LKR 4.51 MM has Fallen at -81.45%
over average net sales of the previous four periods of LKR 24.3 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (LKR MM)
Net Sales
Lowest at LKR 1,606.48 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (LKR MM)
Debtors Turnover Ratio
Lowest at 6.23 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 19.54% (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 0.37 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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