Laxapana Plc (LITE.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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Laxapana Plc

Sierra Cables Plc

ACL Plastics PLC

ACL Cables Plc

Why is Laxapana Plc ?

The company has declared Positive results for the last 3 consecutive quarters

NET SALES(HY) At LKR 1,802.37 MM has Grown at 73.35%
PRE-TAX PROFIT(Q) At LKR 94.22 MM has Grown at 231.79%
NET PROFIT(Q) At LKR 63.21 MM has Grown at 232.2%

With ROE of 17.16%, it has a very expensive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 182.30%, its profits have fallen by -13.2%

Market Beating performance in long term as well as near term

Along with generating 182.30% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Laxapana Plc should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Laxapana Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Laxapana Plc

180.95%

3.45

68.13%

Sri Lanka CSE All Share

60.36%

3.56

17.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

41.25%

EBIT Growth (5y)

48.85%

EBIT to Interest (avg)

3.62

Debt to EBITDA (avg)

0.82

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

1.25

Tax Ratio

34.19%

Dividend Payout Ratio

59.39%

Pledged Shares

Institutional Holding

ROCE (avg)

13.34%

ROE (avg)

18.58%

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

2.76

EV to EBITDA

2.34

EV to Capital Employed

0.39

EV to Sales

0.22

PEG Ratio

Dividend Yield

ROCE (Latest)

14.27%

ROE (Latest)

17.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

11What is working for the Company

NET SALES(HY)

At LKR 1,802.37 MM has Grown at 73.35%

PRE-TAX PROFIT(Q)

At LKR 94.22 MM has Grown at 231.79%

NET PROFIT(Q)

At LKR 63.21 MM has Grown at 232.2%

RAW MATERIAL COST(Y)

Fallen by -11.25% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 13.21 %

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -19.71 MM

NET PROFIT(HY)

At LKR 104.43 MM has Grown at -48.15%

INTEREST(Q)

At LKR 20.67 MM has Grown at 35.37%

DEBT-EQUITY RATIO (HY)

Highest at 65.81 %

Here's what is working for Laxapana Plc

Pre-Tax Profit

At LKR 94.22 MM has Grown at 231.79%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 63.21 MM has Grown at 232.2%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (LKR MM)

Net Sales

At LKR 1,802.37 MM has Grown at 73.35%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit Margin

Highest at 13.21 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -11.25% (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

Depreciation

At LKR 16.46 MM has Grown at inf%

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 Laxapana Plc

Operating Cash Flow

Lowest at LKR -19.71 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Interest

At LKR 20.67 MM has Grown at 35.37%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debt-Equity Ratio

Highest at 65.81 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio